Monetary Policy’s Instruments in Vietnam: Basis and Evolution in A Difficult International Financial Context

  • Quang Nguyen University of Picadie
Keywords: Monetary policy; Reserves Requirements; Interest rate; Open-market operations; Emerging market; Inflation targeting; Vietnam


This work provides an overview of the evolution of monetary policy in Vietnam in the years following the changes in the Vietnamese economy in 20 years, through two periods with two financial crises (1997 Asian financial crisis and 2008 financial crisis). This work also includes a synthesis of the theoretical and empirical research of Vietnamese authors on the subject of monetary policy analysis in Vietnam. In addition, this study aims to understand the change in monetary policy in Vietnam, the socialist-oriented economy, lower middle-income emerging economy, through the adjustment of the instruments that have been developed by the Central Bank of Vietnam. In this period of study, analyses can show to what extent reforms can explain why monetary policy developments are intended not only to stabilize the macro-economy and ensure strong economic growth, but also to address one of the biggest problems in the Vietnamese economy, inflation.