Vietnam Program, May 2008
The Vietnamese economy is facing its most serious challenges since the mid-1980s. Over the past several months the government has stated its determination to curb inflation and restore macroeconomic stability. These are indeed critical priorities, but the government’s actions to date to achieve this end have been largely ineffectual. This Vietnam Policy Discussion Paper argues that a restoration of the situation prior to the onset of the current instability is neither possible nor desirable. This is because the current situation is due largely to structural weaknesses in the Vietnamese economy; the international conditions that have been offered as explanations are, at best, secondary factors.