Topic: Inflation in Vietnam during the period from 2003 to present and related policy suggestions

Sign: LC343

Author: Tran Thi Kim Chi

Major: Political Eonomics

Year: 2008

Lecturer: Assoc. Prof. Dr. Tran Dinh Thien


Low inflation rate was kept in check for a long period of time then since the end of 2003 up to now the inflation rate has the tendency to rise up higher year by year. It is of great significance to find out the causes of high inflation for macro-economy policy making. This dissertation is an effort to find out the basic causes of inflation in Vietnam since late 2003 up to now and then suggests policies that restrain and control inflation in the years to come. Therefore, the main purpose of this essay is to answer the following questions:
- Drivers and progression of inflation since 2003 to present
- Causes of inflation since 2003 to present
- Impacts of inflation on the economy
- Policy suggestions to control inflation and stabilize the macro-economy in the coming years

New contributions:

- Inflation is not a new problem, but has always drawn interest from economists, scientists, politicians and managers upon its emerging. Once inflation happens, it usually leaves drastic consequences behind and it overshadows economic-growth achievements. However, inflation emerging at different stages originates from different causes and requires corresponding solutions. As a result, measures against inflation are only characterized by current attributes which are only temporarily effective to the urgent issues at that time. Causes of inflation in the current period are much different from those in the past. Policies that control inflation also require flexibility in order to effectively response to the current conditions of the economy.
This dissertation attempts to provide an overview of inflation in Vietnam during the period from late 2003 up to now and conduct an analysis of the pros and cons of the government policies in order to control inflation. This essay also evaluates the feasibility and prospects of the measures that the state has carried out in order to control inflation in the past years and then makes some suggestions on macroeconomic policies to control inflation in the Vietnam current economy context.

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