VIET NAM NATIONAL UNIVERSITY- HO CHI MINH CITY INTERNATIONAL

UNIVERSITY

SCHOOL OF ECONOMICS, FINANCE, AND ACCOUNTING

Business Research Methods

LECTURER: Assoc. Prof, PhD.ASSOC. PROF, PHD. HA MINH
TRI
Topic: The relationship of monetary policy, GDP, and interest rate.
How it affect to country's industry

GROUP – CLASS

No. Member’s Name Student ID

1 Nguyễn Minh Dũng BAFNIU21421
Contents
I. Introduction..........................................................................................................................................................4
A. Background research.......................................................................................................................................4
B. Rationale and problems statement...................................................................................................................5
C. Significance and Implications.........................................................................................................................5
II. Literature Review.................................................................................................................................................5
A. Theories and Theoretical Background.............................................................................................................5
1. Theoretical Background..............................................................................................................................5
2. Theories......................................................................................................................................................5
B. Concept and result...........................................................................................................................................6
1. Concept.......................................................................................................................................................6
2. Result..........................................................................................................................................................6
III. Methodology...................................................................................................................................................7
A. Research design.............................................................................................................................................. 7
B. Research process.............................................................................................................................................7
C. Data analysis and key question:......................................................................................................................8
1. How does Vietnam's monetary policy, including its interest rate decisions, compare those countries............9
a. Viet Nam With Thailand, Singapore, Philippines, Malaysia, and Indonesia................................................9
b. Viet Nam With China, Korea, and Japan...................................................................................................10
c. Viet Nam With US, Canada, Germany, and France...................................................................................11
2. What is the relationship between inflation rates and interest rate adjustments in Vietnam, and how does it
differ from other countries?..................................................................................................................................11
a. The correlation between inflation rates and interest rate adjustments in Vietnam.................................11
b. The correlation between inflation rates and interest rate in ASEAN-5.....................................................11
c. The correlation between inflation rates and interest rate in China, Korea, and Japan.............................12
d. The correlation between inflation rates and interest rate in US, Canada, Germany and France..............12
Abstract
This report explores the impact of monetary policy, interest rates, inflation and GDP growth in
12 countries, including Vietnam, Germany, Malaysia, South Korea, China, France, United
States, Japan, Thailand, Singapore, Philippines and Indonesia during this period. from 2000 to
2022. Using data from the World Bank, IMF and national statistical agencies, the study analyzes
key economic indicators such as GDP growth rate, interest rates, inflation rates, direct
investment foreign countries (FDI), unemployment rate, public debt and balance of payments
(BOP). In the research, the paper use of various statistical models including regression analysis,
correlation analysis and comparative analysis, the report examines the relationship between these
variables and evaluates the effectiveness of monetary policies. different currencies. A
comprehensive comparative framework compares Vietnam's economic performance with
ASEAN-5 countries, regional neighbors and Western economies. Time series and sensitivity
analysis are used to discern long-term trends and the impact of changing economic conditions.
Additionally, the qualitative assessment of central bank policies provides context for the
quantitative findings. The results show perspicacious about best practices and strategic lessons
for enhancing economic stability and growth, along with specific recommendations for
Vietnam's monetary policy framework.
I. Introduction
A. Background research
- Monetary policy, GDP, interest rates, and inflation are critical factors in economic
analysis, providing valuable insights into price stability, economic growth, financial
stability, and overall economic health. This report is aimed to examine the impact of
these factors in 12 countries, including Germany, Malaysia, Korea, China, Vietnam,
France, the United States, Japan, Thailand, Singapore, the Philippines, and Indonesia,
with a specific focus on comparing them to the economy of Vietnam.
General Information about Viet Nam’s economy from 2000 to 2022
Viet Nam Economic Indicators In 2022
Inflation FDI Interest Unemploym Public Debt BOP Ranking(/
Rate ent Rate (bil) GDP)
(bil)

3.19% 3,219 6% 2.23% 39.7% 11.2 36th

- Vietnam's economy has experienced remarkable growth and transformation over the past
two decades, positioning itself as one of the fastest-growing economies in Southeast Asia.
From 2000 to 2022, the country's GDP expanded significantly, reaching US$409 billion,
a big increase compared to the year 2000. This growth is reflected in the rising GDP per
capita, which rose to US$4,110 in 2022, representing an increase of US$393 from the
previous year.
- Interestingly, Vietnam achieved a growth rate of 80.2 percent in 2022, surpassing the
initial target of 6-6.5 percent and marking the highest growth rate since 2011. This
performance was widespread across the country, with 99 out of 63 cities and provinces
reporting GDP growth of at least 6.5 percent. Regions such as Khanh Hoa, Bac Giang,
and Da Nang experienced remarkable growth rates, demonstrating the diverse economic
expansion occurring throughout the nation.
- The positive trend of Vietnam's economy is recognized internationally, with the
International Monetary Fund projecting that Vietnam's GDP will surpass the economies
of the Philippines and Singapore, making it the third largest, economy in Southeast Asia
by 2025
 B. Rationale and problems statement
After covid 19 many countries economic are being damage, understanding the intricate
relationships between monetary policy, interest rates, inflation, and GDP growth is
critical for economic stability and sustainable development. The reason why I choose this
topic is because the information gained from this comparative analysis can inform more
effective monetary policies, contributing to sustained economic development and
resilience in Vietnam and other countries with similar economic contexts. This report
focuses on 12 countries, including Vietnam, Germany, Malaysia, Korea, China, France,
the United States, Japan, Thailand, Singapore, the Philippines, and Indonesia, giving a
comprehensive analysis of their economic condition from 2000 to 2022. The rationale
for this study focus in the need to support economic growth and maintaining stability in
the same time, especially in the time with high inflation and the ongoing recovery from
the COVID-19 pandemic.
C. Significance and Implications
The research provide a survey look to informed policymaking by analyzing the impact of
monetary policy, interest rates, inflation, and GDP growth from 12 diverse countries,
helping policymakers adopt best practices and avoid pitfalls. The study show release
policies that balance economic growth and stability, navigating inflationary pressures
from external shocks. Additionally, knowledge from the study support long-term
economic planning, Increase financial sector resilience. Finally, the study is target to
develop Vietnam's economic by providing actionable that lead to strong and flexible
economic policies, higher GDP growth, better inflation control, and overall economic
prosperity.

II. Literature Review

A. Theories and Theoretical Background
1. Theoretical Background
Monetary policy, interest rates, inflation and GDP growth are interconnected factor that
are very important for macroeconomic stability and development. From understanding
these factor the policymaker can have good decision to develop economic condition.
2. Theories
- The quantity theory of money (Monetary Policy): is a hypothesis within monetary
economics which states that the general price level of goods and services is directly
proportional to the amount of money in circulation (i.e., the money supply), and that the
causality runs from money to prices. This implies that the theory potentially explains
inflation. It originated in the 16th century and has been proclaimed the oldest surviving
theory in economics.
- Liquidity Preference Theory (Interest Rate): The liquidity preference theory of
Keynes states the relationship between interest rate, liquidity preferences, and the
quantity or supply of money. It explains the preference for money or liquidity and the
reason to demand and get a high-interest rate for long-term financial assets.
- The Phillips Curve Economic Theory (Inflation Dynamics): The Phillips curve is an
economic theory that inflation and unemployment have a stable and inverse relationship.
Developed by William Phillips, it claims that with economic growth comes inflation,
which in turn should lead to more jobs and less unemployment.
- The Solow-Swan Growth Model (GDP Growth): The Solow–Swan model or
exogenous growth model is an economic model of long-run economic growth. It attempts
to explain long-run economic growth by looking at capital accumulation, labor or
population growth, and increases in productivity largely driven by technological progress.
- The Fisher Effect: The Fisher Effect is an economic theory created by economist Irving
Fisher that describes the relationship between inflation and both real and nominal interest
rates. The Fisher Effect states that the real interest rate equals the nominal interest rate
minus the expected inflation rate. Therefore, real interest rates fall as inflation increases,
unless nominal rates increase at the same rate as inflation.
B. Concept and result
1. Concept
- The research focuses on several fundamental economic concepts essential for analyzing
monetary policy, interest rates, inflation, and GDP growth. Monetary policy refers to the
strategies employed by central banks to control the money supply and interest rates to
manage inflation, employment levels, and currency stability. Interest rates, the cost of
borrowing money, are influenced by central banks to regulate economic activity,
investment, and consumption. Inflation, the rate at which the general price level rises,
erodes purchasing power and requires careful management to maintain economic
stability. GDP growth measures the rate at which a country’s economy expands,
reflecting overall economic health and prosperity. Foreign Direct Investment (FDI),
investments made by entities in one country into businesses in another, is crucial for
providing capital, technology, and expertise that drive economic growth. The
unemployment rate, indicating the percentage of the labor force actively seeking
employment, serves as a key indicator of economic health. Public debt, the total amount
of money owed by the government, affects economic stability and fiscal policy. Lastly,
the Balance of Payments (BOP) records all economic transactions between residents of a
country and the rest of the world, encompassing trade balances, capital flows, and
financial transfers, and is vital for understanding a country’s economic interactions with
the global economy
2. Result
- The research revealed several key findings about the relationships between monetary
policy, interest rates, inflation, and GDP growth across the 12 countries studied,
including Vietnam. Countries with well-structured, rule-based monetary policy
frameworks, like the Taylor Rule, were more successful in achieving economic stability,
while Vietnam's monetary policy has effectively controlled inflation but still faces
challenges related to financial stability and external vulnerabilities. Lower interest rates
generally stimulated investment and consumption, leading to higher GDP growth, though
 this relationship's effectiveness varied with external economic conditions and domestic
policies. Vietnam benefitted from lower interest rates for growth, yet must manage them
carefully to avoid economic overheating. Effective inflation targeting was crucial for
economic stability, with robust measures correlating to better economic performance.
Vietnam has managed inflation relatively well but remains susceptible to external price
shocks and domestic supply constraints. Comparative performance analyses of the
ASEAN-5 countries showed varied resilience during global financial instability, with
structural reforms and effective monetary policies being key factors. Vietnam has made
significant progress but requires further reforms to enhance economic resilience. High
levels of Foreign Direct Investment (FDI) were associated with stronger economic
growth, benefiting countries like Singapore and Malaysia. Vietnam has also seen positive
FDI impacts, contributing to its growth and industrialization. Lower unemployment rates
were linked to higher economic growth, while high public debt levels posed risks to
stability. Vietnam has maintained low unemployment rates, but rising public debt needs
prudent management. Lastly, a positive Balance of Payments (BOP) indicated economic
health through strong export performance and capital inflows. Vietnam’s generally
favorable BOP, driven by robust export growth, must continue diversifying its export
base to mitigate risks from global economic fluctuations. These findings provide
actionable insights for policymakers, helping Vietnam refine its monetary and economic
policies to enhance stability and achieve sustainable growth.

III. Methodology
A. Research design
The research aims to examine the impact of monetary policy, interest rates, inflation, and
GDP growth in 12 countries, including Vietnam, Germany, Malaysia, South Korea, China,
France, the United States, Japan, Thailand, Singapore, the Philippines, and Indonesia, from
2000 to 2022. The study utilizes data from the World Bank, IMF, and national statistical
agencies to analyze key economic indicators such as GDP growth rate, interest rates,
inflation rates, foreign direct investment (FDI), unemployment rate, public debt, and balance
of payments (BOP). The methodology employs a combination of quantitative analysis,
including regression, correlation, and comparative analysis, as well as qualitative assessment
of central bank policies. A comprehensive comparative framework is used to benchmark
Vietnam's economic performance against the ASEAN-5 countries, regional neighbors, and
Western economies. The research aims to provide insights into best practices and strategic
lessons for enhancing economic stability and growth in Vietnam, while also offering specific
recommendations for improving the country's monetary policy framework based on the
findings.
 B. Research process
The research process begins with a thorough literature review to understand the current state
of knowledge on the impact of monetary policy, interest rates, inflation, and GDP growth on
economic performance, particularly in the context of Vietnam and the other 11 countries
under study. The researchers then collect relevant data from the World Bank, IMF, and
national statistical agencies for the period from 2000 to 2022, covering key economic
indicators such as GDP growth rate, interest rates, inflation rates, foreign direct investment
(FDI), unemployment rate, public debt, and balance of payments (BOP). The data is then
prepared and cleaned to ensure reliability and consistency. The researchers then employ a
range of quantitative analysis techniques, including regression, correlation, and comparative
analysis, to examine the relationships between the variables and benchmark Vietnam's
economic performance against the ASEAN-5 countries, regional neighbors, and Western
economies. Alongside the quantitative analysis, the researchers also conduct a qualitative
assessment of central bank policies and their impact on the economies. Time series and
sensitivity analyses are used to discern long-term trends and the impact of changing
economic conditions. The research findings are then synthesized and interpreted to identify
best practices and strategic lessons for enhancing economic stability and growth in Vietnam,
culminating in the provision of specific recommendations for improving the country's
monetary policy framework.
C. Data analysis and key question:

In this section of the report, we are about

to dip into the key questions surrounding
the relationship between monetary
policy, interest rates, inflation, and GDP
growth in Vietnam compared to other
countries such as Germany, Malaysia,
Korea, China, France, the US, Japan,
Thailand, Singapore, the Philippines, and
Indonesia.

How does Vietnam's monetary policy, including its How does Vietnam's GDP growth performance stand
interest rate decisions, compare those countries? against other countries?

What is the relationship between inflation rates and

interest rate adjustments in Vietnam, and how does it
differ from other countries?
 1. How does Vietnam's monetary policy, including its interest rate decisions, compare those
countries
a. Viet Nam With Thailand, Singapore, Philippines, Malaysia, and Indonesia

When comparing Vietnam's monetary policy to that of other countries in the ASEAN-5 region, 2 notable
differences.

Volatility Stability

Vietnam's monetary policy, particularly in terms The other countries have maintained a more
of interest rate decisions, has historically consistent and gradual approach to interest rate
exhibited greater volatility compared to the other adjustments during the same period. Their interest
ASEAN-5 countries. The provided data from rates tended to be lower than Vietnam's in the early
2000 to 2022 indicates significant fluctuations in years and have remained relatively stable and
Vietnam's interest rates over time. predictable, with smaller fluctuations over time.
Aggressive Approach Gradual Approach

Vietnam's monetary policy tended to be more The other countries have generally adopted a more
aggressive, with higher interest rates compared to gradual and cautious approach to interest rate
other ASEAN-5 countries. This suggests a adjustments, prioritizing stability, and long-term
relatively more proactive stance towards planning. They have favored moderate and
managing inflationary pressures and supporting incremental changes to interest rates, aiming to
economic growth. maintain a predictable and conducive monetary
environment for businesses and individuals.
 b. Viet Nam With China, Korea, and Japan

 China: The interest rates in China remained relatively stable and at lower levels compared to the other
countries. From 2000 to 2022, China maintained consistently low interest rates, ranging from around 3.0%
to 3.6%. This suggests a monetary policy focused on stimulating economic growth and supporting
investment.
 Japan: Japan implemented a prolonged period of low interest rates during the analyzed period. Interest
rates in Japan were consistently low, ranging from around 0.39% to 2.43%. This long-lasting low-interest-
rate policy was aimed at combating deflation and encouraging borrowing and spending to boost the
economy.
 Korea: Korea's interest rates fluctuated within a relatively narrow range throughout the years. The rates
started around 2.02% in 2000 and ended around 1.35% in 2022. Korea's monetary policy demonstrated a
balance between promoting economic growth and maintaining stability, with occasional adjustments to
respond to changing economic conditions.

Viet Nam Higher and more volatile interest rates.

Reflects a proactive approach to managing inflation and supporting economic growth.

China Consistently low and stable interest rates.

Aimed at stimulating economic growth and facilitating investment

Japan Implemented to combat deflation and encourage borrowing and spending.

Interest rates remained historically low, ranging from around 0.39% to 2.43%

Korea Moderate fluctuations within a relatively narrow range.

Pursues a balanced approach to monetary policy.

c. Viet Nam With US, Canada, Germany, and France

- United States: implemented a varied monetary policy during this period. Following the dot-com bubble
burst and the global financial crisis, the Federal Reserve (Fed) took measures to stimulate economic
growth and stabilize the financial system. From 2000 to 2006, the Fed gradually reduced interest rates,
reaching historic lows in response to the financial crisis. However, as the economy recovered, the Fed
started on a series of interest rate hikes to normalize monetary policy and manage inflationary pressures.
This tightening cycle lasted until 2019, when the Fed shifted to a more accommodative stance in response
to economic uncertainties, including the COVID-19 pandemic.
- Canada: monetary policy closely followed that of the United States due to its strong economic ties. The
Bank of Canada adjusted interest rates in response to changes in the U.S. Federal Reserve rates. Similar to
the United States, Canada experienced a period of declining interest rates until the mid-2000s, followed
by a gradual increase to curb inflationary pressures.
- France: as a member of the Eurozone, follows the monetary policy decisions set by the European Central
Bank (ECB). The ECB aims to maintain price stability across the region. From 2000 to 2008, interest rates in
France gradually declined as the Eurozone faced economic challenges and the global financial crisis.
Following the crisis, the ECB lowered interest rates further in an effort to stimulate economic growth and
combat deflationary pressures. However, the Eurozone debt crisis led to a period of higher borrowing
costs and increased financial volatility. In response, the ECB implemented unconventional measures,
including quantitative easing and negative interest rates, to support the economy.
- Germany: a member of the Eurozone, follows the monetary policy decisions set by the ECB. Similar to
France, Germany experienced declining interest rates from 2000 to 2008. However, due to its strong
economy and fiscal discipline, Germany was regarded as a relatively stable and resilient country during
the Eurozone debt crisis. As the Eurozone faced challenges, Germany benefited from lower borrowing
costs and maintained a favorable interest rate environment. The country's solid economic performance
and commitment to sound fiscal policies contributed to its stability.
2. What is the relationship between inflation rates and interest rate adjustments in Vietnam, and
how does it differ from other countries?
- The Fisher Effect has implications for economies on a macroeconomic scale. In countries where
the Fisher Effect holds true, an increase in inflation rates would lead to higher nominal interest
rates. This relationship is based on the idea that lenders and borrowers adjust their expectations
and require compensation for the anticipated erosion of purchasing power caused by inflation. In
countries where the Fisher Effect holds true, an increase in inflation rates would lead to higher
nominal interest rates. This relationship is based on the idea that lenders and borrowers adjust
their expectations and require compensation for the anticipated erosion of purchasing power
caused by inflation.

Fisher Effect
real interest rate ≈ nominal interest rate − inflation rate

a. The correlation between inflation rates and interest rate adjustments in Vietnam
- In Vietnam, there is generally a positive correlation between inflation rates and interest
rate adjustments. As inflation rises, the central bank tends to increase interest rates as a
measure to control inflationary pressures and stabilize the economy. Conversely, when
inflation is low, the central bank may lower interest rates to stimulate economic activity
and encourage borrowing and investment.
- The relationship between inflation and interest rates in Vietnam is driven by the
monetary policy objectives of the State Bank of Vietnam (SBV), the country's central
bank. The SBV aims to maintain price stability and ensure sustainable economic growth.
When inflationary pressures increase, such as through rising commodity prices or excess
demand, the SBV may tighten monetary policy by raising interest rates
b. The correlation between inflation rates and interest rate in ASEAN-5
Thailand Singapore Philippines Malaysia Indonesia

Correlation Positive Positive Positive Positive Positive

Purpose of Manage inflation Manage inflation Manage inflation Manage inflation Responseto
adjusting IR and promote and promote and promote and support price inflationary
price stability economic stability economic stability stability pressures

Among these countries, Vietnam

consistently had relatively higher inflation
rates, reaching a peak of 23.12% in 2008.
This was followed by Indonesia, which also
experienced significant fluctuations in
inflation, peaking at 13.11% in 2006. On the
other hand, Singapore consistently had the
lowest inflation rates among the ASEAN-5
countries, with an average inflation rate of
around 1.5% during this period. Malaysia
also maintained relatively low inflation rates,
with the lowest point of -1.14% in 2020.
 c. The correlation between inflation rates and interest rate in China, Korea, and Japan
China Korea Japan

Correlation Positive Positive -

Purpose of adjusting IR Maintain price stability while Balance inflation and Stimulate inflation and
promoting sustainable economic growth achieve a moderate level of
economic growth price growth

China and Korea had relatively moderate

inflation rates, with China experiencing
fluctuations between negative and positive
rates throughout the period. Korea
maintained inflation rates ranging from
around 0.35% to 5.93%, with some volatility
during the global financial crisis in 2008. Japan,
on the other hand, faced a persistent
challenge of low inflation or deflation. Its
inflation rates remained generally low, with
negative rates observed in some years.

d. The correlation between inflation rates and interest rate in US, Canada, Germany and France
US Canada Germany France

Correlation Positive Positive - -

Purpose of adjusting Controlling inflation Balancing inflation Ensuring price stability Managing inflation
IR and economy and economic growth and economic activity

The United States experienced medium

inflation, with fluctuations ranging from a low
of -0.36% in 2009 to a high of 4.70% in 2021.
Canada and Germany both maintained
relatively low inflation rates, with Canada
ranging from a low of 0.30% in 2009 to a high
of 3.40% in 2021, and Germany ranging from
a low of 0.51% in 2020 to a high of 2.76% in
2002. France consistently had the lowest
inflation rates among these countries, with
an average inflation rate of around 1.5%
during this period, with the highest point of
2.81% in 2008.
 3. How does Vietnam's GDP growth performance stand against other countries?
- Vietnam has been experiencing robust economic growth over the years, with its GDP expanding at a significant
pace. From 2000 to 2021, Vietnam's economy has been growing consistently, with several years of high growth
rates. Notably, Vietnam's economic growth accelerated in the 2000s and 2010s, driven by factors such as market-
oriented reforms, increased foreign direct investment, and strong export performance.

In recent years, Vietnam has

emerged as one of the fastest-
growing economies in the Southeast
Asian region. In 2020, despite the
challenges posed by the COVID-19
pandemic, Vietnam recorded a
positive GDP growth rate,
demonstrating its resilience and
effective handling of the crisis.

Within the ASEAN-5 group, Vietnam's GDP growth rate consistently exceeded that of Thailand, Singapore, the
Philippines, and Indonesia. Vietnam's average annual growth rate of around 6% stands out compared to its ASEAN
counterparts. This highlights Vietnam's ability to foster economic development and become a leading economy in
the region.

In comparison to the combined growth rates of China, Korea, and Japan, Vietnam demonstrated a higher average
GDP growth rate. While these countries are economic powerhouses, Vietnam's economy experienced more rapid
expansion, positioning it as a key player in Asia.

Similarly, when compared to the combined growth rates of the US and Canada, Vietnam's GDP growth rate
surpassed the average growth rate of these developed economies. This indicates Vietnam's ability to attract
investments and stimulate economic growth.
VN Thai Sing Malay Philip Indo China Kor Jpan US Can Ger Fran
2000 6.79% 4.46% 9.04% 8.86% 4.38% 4.92% 8.49% 9.06% 2.76% 4.08% 5.18% 2.91% 3.92%
2001 6.19% 3.44% -1.07% 0.52% 3.05% 3.64% 8.34% 4.85% 0.39% 0.95% 1.79% 1.68% 1.98%
2002 6.32% 6.15% 3.92% 5.39% 3.72% 4.50% 9.13% 7.73% 0.04% 1.70% 3.02% -0.20% 1.14%
2003 6.90% 7.19% 4.55% 5.79% 5.09% 4.78% 10.04% 3.15% 1.54% 2.80% 1.80% -0.70% 0.82%
2004 7.54% 6.29% 9.94% 6.78% 6.57% 5.03% 10.11% 5.20% 2.19% 3.85% 3.09% 1.18% 2.83%
2005 7.55% 4.19% 7.37% 5.33% 4.94% 5.69% 11.39% 4.31% 1.80% 3.48% 3.20% 0.73% 1.66%
2006 6.98% 4.97% 9.01% 5.58% 5.32% 5.50% 12.72% 5.26% 1.37% 2.78% 2.63% 3.82% 2.45%
2007 7.13% 5.44% 9.02% 6.30% 6.52% 6.35% 14.23% 5.80% 1.48% 2.01% 2.07% 2.98% 2.42%
2008 5.66% 1.73% 1.86% 4.83% 4.34% 6.01% 9.65% 3.01% -1.22% 0.12% 1.01% 0.96% 0.25%
2009 5.40% -0.69% 0.13% -1.51% 1.45% 4.63% 9.40% 0.79% -5.69% -2.60% -2.93% -5.69% -2.87%
2010 6.42% 7.51% 14.52% 7.42% 7.33% 6.22% 10.64% 6.80% 4.10% 2.71% 3.09% 4.18% 1.95%
2011 6.41% 0.84% 6.21% 5.29% 3.86% 6.17% 9.55% 3.69% 0.02% 1.55% 3.15% 3.93% 2.19%
2012 5.50% 7.24% 4.44% 5.47% 6.90% 6.03% 7.86% 2.40% 1.37% 2.28% 1.76% 0.42% 0.31%
2013 5.55% 2.69% 4.82% 4.69% 6.75% 5.56% 7.77% 3.16% 2.01% 1.84% 2.33% 0.44% 0.58%
2014 6.42% 0.98% 3.94% 6.01% 6.35% 5.01% 7.43% 3.20% 0.30% 2.29% 2.87% 2.21% 0.96%
2015 6.99% 3.13% 2.98% 5.09% 6.35% 4.88% 7.04% 2.81% 1.56% 2.71% 0.66% 1.49% 1.11%
2016 6.69% 3.44% 3.56% 4.45% 7.15% 5.03% 6.85% 2.95% 0.75% 1.67% 1.00% 2.23% 1.10%
2017 6.94% 4.18% 4.66% 5.81% 6.93% 5.07% 6.95% 3.16% 1.68% 2.24% 3.04% 2.68% 2.29%
2018 7.47% 4.22% 3.66% 4.84% 6.34% 5.17% 6.75% 2.91% 0.58% 2.95% 2.78% 0.98% 1.87%
2019 7.36% 2.15% 1.10% 4.41% 6.12% 5.02% 5.95% 2.24% -0.24% 2.29% 1.88% 1.06% 1.84%
2020 2.87% -6.20% -4.14% -5.53% -9.52% -2.07% 2.24% -0.71% -4.51% -2.77% -5.23% -3.70% -7.78%
2021 2.48% 1.53% 7.61% 3.09% 3.70% 3.69% 8.11% 4.15% 1.66% 5.95% 4.54% 2.63% 6.82%
Vietnam's remarkable economic growth can be attributed to its export-oriented policy
The export-oriented policy has been a driving force behind Vietnam's economic success, positioning the country as
an emerging global player in international trade and investment. By focusing on producing goods and services for
international markets, Vietnam has capitalized on its abundant labor force, favorable business environment, and
competitive production costs. This approach has also enabled Vietnam to attract foreign direct investment, foster
technological advancements, and improve its infrastructure.

Vietnam has engaged in significant

economic cooperation with these group
countries. With China, Vietnam has
established strong trade and investment
ties, making China one of Vietnam's
largest trading partners. In terms of
Korea, Vietnam has witnessed increasing
cooperation, particularly in areas such as
manufacturing, technology, and
infrastructure development. Japan has
been an important investor in Vietnam,
supporting its industrialization and
contributing to economic growth.

Vietnam has also deepened economic ties

with the US, engaging in trade
agreements and attracting American
investments. Cooperation with Canada
has focused on sectors like education,
energy, and infrastructure. With France,
Vietnam has developed partnerships in
various sectors, including aerospace,
infrastructure, and renewable energy.
Germany has been a key trade partner
and source of technology and investment
for Vietnam.

Table: Key Trade Sectors Between Vietnam and Other Countries

Germany Cooperation in manufacturing, technology, and renewable energy sectors

France Collaboration in aerospace, infrastructure, and renewable energy sectors

China Strong trade partnership, increased trade volumes, and investments, contributing to
manufacturing and agricultural growth.

Korea Support in investment, technology transfer, and infrastructure development

Japan Major investor supporting industrialization, growth in manufacturing, electronics, and automotive
sectors

US Trade agreements and investments have led to the expansion of industries such as manufacturing,
information technology, and services

Canada Cooperation has flourished in sectors such as agriculture, energy, and tourism

Thailand Strengthened economic ties through trade agreements and joint projects

Singapore Crucial trade and investment partner, particularly in real estate, manufacturing, and financial
services

Indonesia Increasing collaboration in energy, infrastructure, and tourism sectors

Philippine Enhanced cooperation in agriculture, tourism, and infrastructure development

s

Malaysia Investment cooperation, particularly in electronics, oil and gas, and tourism

IV. Reference
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3. https://www.investopedia.com/terms/p/phillipscurve.asp
4. https://www.investopedia.com/terms/f/fishereffect.asp
5. https://www.stlouisfed.org/open-vault/2020/march/understanding-role-monetary-
policy-economy
6. https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Monetary-
Policy
7. https://www.stlouisfed.org/publications/regional-economist/2023/aug/lower-inflation-
gdp-growth-positive-signs-us-economy
8. Data from library floor 1 IU