Vietnam's financial background in 1997-1998 and 2007-2008: the gap and changes

Abstract

This study focuses on sereval substantial changes that characterized the shift of Vietnam's macroeconomic structures and evolution of micro-strutural interaction over an important period of time marking two events of critical turmoil, 1997-1998 and 2007-2008. The period also marks a full decade of higher growth. The results show that these events are completely distinct in terms of: (i) Economic nature; (ii) Scale and depth of changes; (iii) Start and end results; (iv) Requirement for macroeconomic decisions. The authors hope to also open up paths for futher empirical verifications and to stress on the fact that macro policies will have, from now on, to be decided in line with changing micro-settings, which specify a market economy and decide the degree of success of any macroeonomic choices.