Advertisement

Repression of the Banking Sector in the Transition to a Market-based Economy: The Case of Vietnam

  • Koji Kubo
Chapter
  • 48 Downloads
Part of the IDE-JETRO book series (IDE)

Abstract

One of the characteristics of Vietnam’s transition from a planned to a market-based economy is that the Communist party-led government directed the process. The government demonstrated leadership in implementing a “shock therapy” stabilization program in 1989–91, which comprised price liberalization and the abolition of central planning. The stabilization program provided the basis for subsequent economic growth.1 Real GDP recorded an average annual growth rate of 7.3 per cent for the period between 1989 and 2003.2 In terms of the banking sector, the stabilized macroeconomic environment gave impetus to savings mobilization. The deposit-to-GDP ratio has tripled to over 50 per cent in 15 years in the process of transformation of a mono-bank system to a two-tier banking system.

Keywords

Central Bank Banking System Banking Sector Lending Rate Credit Supply 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Fforde, A. and S. de Vylder (1996) From Plan to Market: the Economic Transition in Vietnam. Boulder: Westview Press.Google Scholar
  2. Fries, S. and A. Taci (2002) “Banking Reform and Development in Transition Economies,” EBRD Working paper No. 71.Google Scholar
  3. Hattori, R. (1998) “Financial Reforms and Banking Crises in Vietnam,” in S. Watanabe (ed.), Financial Crises and Regulations, IDE Research Series No. 485 (in Japanese)Google Scholar
  4. Hellmann, T., K. Murdock and J. Stiglitz (1996) “Financial Restraint: Toward a New Paradigm,” in M. Aoki, M. Okuno-Fujiwara and H. Kim (eds), The Role of Government in East Asian Economic Development: Comparative Institutional Analysis. Oxford: Clarendon Press, pp. 163–207.Google Scholar
  5. International Monetary Fund (IMF) (various issues) IMF Country Report No. 03/382, 03/381, 03/380, 02/151, 02/5, 02/4, 99/56, 99/55, 98/30.Google Scholar
  6. Levine, R. (1997) “Financial Development and Economic Growth: View and Agenda,” Journal of Economic Literature 35, 688–726.Google Scholar
  7. Li, D.D. (2001) “Beating the Trap of Financial Repression in China,” Cato Journal, 21(1), 77–90.Google Scholar
  8. Watanabe, S. (2000) “Bad Loan Problem in Vietnam: Ad Hoc Measures and Long-term Reform Policies,” in K. Kunimune (ed.), Financial Restructuring and Corporate Restructuring: Asian Experience. IDE Research Series No. 510 (in Japanese).Google Scholar
  9. World Bank (2002) Banking Sector Review: Vietnam. Washington, DC: World Bank.Google Scholar
  10. World Bank (1995) Vietnam Financial Sector Review: An Agenda for Financial Sector Development, Report No. 13135-VN. Washington, DC: World Bank.Google Scholar

Copyright information

© Institute of Developing Economies (IDE), JETRO 2006

Authors and Affiliations

  • Koji Kubo

There are no affiliations available

Personalised recommendations