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The Vietnam's Transition Economy and Its Fledgling Financial Markets: 1986-2003

Author

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  • Quan-Hoang Vuong

Abstract

In this paper, we analyze the context of Vietnam’s economic standings in the reform period. The first section embarks on most remarkable factors, which promote the development of financial markets are: (i) Doi Moi policies in 1986 unleash ‘productive powers’. Real GDP growth, and key economic indicators improve. The economy truly departs from the old-style command economy; (ii) FDI component is present in the economy as sine qua non; a crucial growth engine, forming part of the financial markets, planting the ‘seeds’ for its growth; and (iii) the private economy is both the result and cause of the reform. Its growth is steady. Today, it represents a powerhouse, and helps form part of the genuine financial economy. A few noteworthy points found in the next section are: (i) No evidence of financial markets existence was found before Doi Moi. The reform has generated a bulk of private-sector financial companies. New developments have roots in the 1992-amended constitution (x3.2); (ii) The need to reform the financial started with the domino collapse of credit cooperatives in early 1990s. More stress is caused by the ‘blow’ of banking deficiency in late 1990s; and (iii) Laws on SBV and credit institutions, and the launch of the stock market are bold steps. Besides, the Asian financial turmoil forces the economy to reaffirm its reform agenda. Our findings also indicate, through empirical evidences, that economic conditions have stabilized throughout the reform, thanks to the contributions of the FDI and private economic sector. Private investment flows continue to be an eminent factor that drives the economy growth.

Suggested Citation

  • Quan-Hoang Vuong, 2004. "The Vietnam's Transition Economy and Its Fledgling Financial Markets: 1986-2003," Working Papers CEB 04-032.RS, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:04-032
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    Cited by:

    1. , Aisdl, 2020. "Current Situation of Corruption Offenses and Measures for Improvement of Anti-Corruption Effectiveness in Vietnam’s Economy," OSF Preprints h5ge6, Center for Open Science.
    2. Mai, Nhat Chi, 2014. "Contractual Negotiation Between Petrovietnam Gas And Solar Turbines International Company," OSF Preprints gzwdn, Center for Open Science.
    3. Mai, Nhat Chi, 2011. "Building a VC Market in Vietnam: VC Policy Lessons from Europe and Asia," OSF Preprints 968ye, Center for Open Science.
    4. Mai, Nhat Chi, 2022. "Economic history of Vietnam," OSF Preprints xrk52, Center for Open Science.
    5. , Aisdl, 2014. "Contractual Negotiation Between Petrovietnam Gas And Solar Turbines International Company," OSF Preprints cyqn2, Center for Open Science.
    6. Huynh, Pham Duy Anh, 2023. "Non-market economy status in anti-dumping investigations and proceedings: A case study of Vietnam," OSF Preprints esw4b, Center for Open Science.
    7. Quan-Hoang Vuong, 2004. "Analyses on Gold and US Dollar in Vietnam's Transitional Economy," Working Papers CEB 04-033.RS, ULB -- Universite Libre de Bruxelles.
    8. Vuong, Quan-Hoang, 2010. "Mergers & Acquisitions Market in Vietnam’s Transition Economy," OSF Preprints cnp74, Center for Open Science.
    9. Huynh, Pham Duy Anh, 2022. "Non-Market Economy Status In Anti-Dumping Investigations And Proceedings: A Case Study Of Vietnam," OSF Preprints 2twmp, Center for Open Science.
    10. Quyen Van & Vy Tran, 2023. "Control of Emerging-Market Target, Abnormal Stock Return: Evidence in Vietnam," Papers 2302.07117, arXiv.org, revised Mar 2023.
    11. Mai, Nhat Chi, 2017. "Wealth Effects of Mergers and Acquisitions on Vietnamese Listed Firms," OSF Preprints ctdzn, Center for Open Science.
    12. , Aisdl, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints ucbhp, Center for Open Science.
    13. Mai, Nhat Chi, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints de8zq, Center for Open Science.
    14. Quan-Hoang Vuong & Tran Tri Dung & Thi Chau Ha NguyenN, 2009. "Mergers and Acquisitions in Vietnam’s Emerging Market Economy, 1990-2009," Working Papers CEB 09-045.RS, ULB -- Universite Libre de Bruxelles.
    15. , Aisdl, 2021. "Economic history of Vietnam," OSF Preprints 3bgwq, Center for Open Science.
    16. Quan-Hoang Vuong & Tran Tri Dung, 2010. "Corporate Bond Market in the Transition Economy of Vietnam, 1990-2010," Working Papers CEB 10-001.RS, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    Vietnam; Financial economy; Transition economies; Financial time series; Economic evolution.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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    1. Economic history of Vietnam in Wikipedia English

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