Dollarization in Vietnam: current situation and solutions

Abstract

In the past decade, although inflation has been under control and tends to remain low, dollarization is still widespread in developing and transition economies, including Vietnam. . The costs of dollarization are much greater than the benefits of dollarization, so the anti-dollarization motives of monetary regulators are seen as a policy objective. Most countries seek to limit dollarization, due to the potential adverse effects of dollarization on macroeconomic policies and financial stability. The paper examines the dollarization situation and offers solutions to limit and reduce dollarization in Vietnam.