Vietnam : The Global Economic Crisis Greatly Affected Vietnam

1385 Words Dec 10th, 2015 6 Pages
The country that I have chosen to do research in is Vietnam. Vietnam was considered one of the poorest countries until just recently it has been transformed into a lower middle-income country because of changing from a centrally planned economy into a more market-oriented economy through the use of the international trading system. The political and economic reform project is called Doi Moi and since Doi Moi has been initiated, Vietnam has grown at an annual average rate of 6.3% between the years 2007-2012 (World Trade Organization).
The global financial crisis greatly affected Vietnam because it led to more tightly macroeconomic policies that were implemented in 2011. However, the official unemployment rate remains very low, even though inflation dropped by 23% in 2008 and 18.6% in 2011(World Trade Organization). The global economic crisis also dropped foreign exchange reserves a large significant amount for the year 2008. However, in 2013 the foreign exchange reserves rose to 28.6 billion dollars in United States currency (World Trade Organization). The use of direct policy tools rather than indirect were used to accomplish macroeconomic objectives that were set out in 2011. The monetary policy controlled inflation and this can be seen in recent years when the central bank with the government help we 're able to devalue it’s national currency a minimum of seven times to improve export competitiveness and narrow it’s trading band (World Trade Organization).
Vietnam has…
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