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Determinants of inflation in Vietnam based on monetary approach

After experiencing three years of deflationary phenomenon during 1999-2001, inflation has become a rising issue in Vietnam since 2004. In reality, there are many contrast views among the Vietnamese and foreign economists about the main causes of the inflation in this period. With the final aim of partly contributing to better understanding the key causes of and solution to inflation in Vietnam, this article is designed to analyze Vietnam's determinants of inflation based on the monetary approach to inflation. The results of this study showed that expectation inflation, broad money supply, exchange rate, and interest rate are the determinants of inflation in Vietnam in the long run. In the short run, the impact of these key monetary factors on inflation has fallen significantly since the end of 1994. In particular, the broad money supply has little significant impact on inflation in Vietnam when the economic openness has been rising. Besides, the study result showed that while the money velocity has a falling tendency since 1995, the money multiplier has a rising tendency at the same time. That is the reason for in part explaining why inflation rate is recorded at the low level in the 1999-2002 in Vietnam although the State Bank had carried out its loosen monetary policy at that period. Finally, the study showed that the determinants of inflation based on the monetary approach are not enough for explaining the recent changes of inflation in Vietnam. It is necessary and u.seful to combine the monetary and structural approach to study the causes of inflation and suggest some effective solutions to inflation in Vietnam in the context of rising globalization.

Elements that influence the use of clean vegetables of Hue citizens

Financial-currency policy boost agricultural and development

Thanks to "doi moi" Vietnam has seen great changes in agriculture and rural development; in which farmers have played their important role with the support of various branches and sectors-especially the state financial support. The article presents the status of the state financial support for agriculture and rural development; the successes and outstanding problems as well as proposes some solutions to overcome them so as to boost agriculture and rural development in the coming time. The article is focused on the following contents I. The status of providing capital for investment and financial services for agriculture and rural development 1. State investment capital 2. Foreign investment 3. Bank credits II. He status of pursuing the financial .and currency policy for industrialization and modernization of agriculture and rural region 1. The results 2. Some weaknesses and outstanding prob.lems 3. Reasons for those weaknesses and outstanding problems III. Some solutions 1. Measures to overcome the problems and boost the realization of ODA projects and foreign sponsored credits for agriculture and rural development. 2. Negotiate with international donors so that they agree to transfer financial support poverty elimination scheme via Vietnam Bank for Social Affairs Policy. 3. Apply the policy of tax reduction and preferential treatment to the credit activity in the rural areas. Besides a zero corporate income tax should be applied to the credit establishments which supply investment capital for agriculture and rural development. 4. Boost trade promotion schemes.

How to raise enterprises's competitiveness on the threshold of WTO

Impact of economic institutions on investment environment

Perfecting investment environment to facilitate the investment attraction has been given great attention in Vietnam today. Among many factors related to investment environment, economic institutions play the key role. However there remain differences in how to define the institutions and economic institutions. This article is designed to focus on analyzing this problem, so that the institutions and economic institutions have been clearly defined as well as their impact on the investment environment. At the same time the article proposes some measures to create more attractive investment environment in Vietnam. The major contents of this article include: I. The definition and classification of economic institutions 1. The definition of economic institutions 2. Classification of economic institutions such as - The role of economic institutions in reducing investment cost - The role of economic institutions in reducing risks during the investment activity - The role of economic institutions in raisi~g competitiveness II. The forms of economic institutions and their impact on investment environment 1. Series of institutions related to production and business cost, and their impact on investment environment 2. Series of economic institutions related to risks in the investment environment 3. Series of economic institutions related to competitiveness and their impact on investment environment III. Some suggestions that will perfect the economic institutions and create more attractive investment environment.

Public policy formulation-decisive factor for sustainable development

The direct nvestment of TNCs from Japan in Vietnam and its prospect

During direct investment of TNCs from Japan to boost industrialization and modernization of economy has been widespread in many countries and Vietnam is no exception. With" doi mol' process and open door policy Vietnam has lured foreign invested projects from many countries including TNCs from Japan. However so far the number of FDI projects from JapaneseTNCs still remains modest compared with other countries. To learn and apply advanced technology and modern management skills from the arrivals of Japanese TNCs to boost Vietnam's economy has become an urgency. The article presents the status of Japanese TNCs in Vietnam in the 1991-2005 period; analizes objective and subjective factors that leave impact on FDI influx; at the same time seeks prospect to attract Japanese TNCs to Vietnam in the coming period through the improvement of investment environment in Vietnam. The major contents of this article include: I. An overview of FDI from Japanese TNCs in Vietnam for the past few years. II. The prospects to lure FDI from Japanese TNCs into Vietnam in the coming period.