Banking and Financial Operations in Vietnam

Abstract

From the end of the 1970s, before the 6th National Congress, Vietnam began grappling with a socioeconomic crisis in which production slipped into stagnation and loss-making. In the period 1976–81, the annual production growth rate was 0.4 per cent, the population grew at a rate of 2.3–2.4 per cent per year, inflation increased uncontrollably, external economic relations were stagnant, the country was still subject to blockade and embargo, and living standards declined sharply. As a result, the economy was in serious crisis, which peaked when hyperinflation reached 774.7 per cent in 1986.