Topic:The situation of controlling inflation in Vietnam from 2020to 2023 - Tài liệu tham khảo | Đại học Hoa Sen

MINISTRY OF EDUCATION & TRAINING HOA SEN UNIVERSITY GROUP PROJECT Macroeconomic Topic:
The situation of controlling inflation in Vietnam from 2020 to 2023 Instructor Phùng Thế Vinh Class 1093_2331 Group 5 Đàng Thục Huệ - 22206966
Nguyễn Thị Hường – 22207436
Bùi Thị Hồng Ngọc – 22205445 Group members
Trầm Thị Tiền Phương – 22205278
Nguyễn Thị Thu Nga – 22206678
Nguyễn Hoàng Thanh Nhã - 22205996 Ho Chi Minh, December 2023 ABSTRACT
This essay delves into the intricate landscape of controlling inflation in
Vietnam and the global economy, spanning the pivotal years from
2020 to 2023. Focused on macroeconomic dynamics, the study
explores the multifaceted strategies and challenges faced by the
Vietnamese government in managing inflation within the backdrop of
significant economic shifts and global uncertainties. It scrutinizes the
interplay of domestic and external forces, including government
policies, global economic trends, and the dynamic nature of Vietnam's economy.
The analysis extends beyond Vietnam's borders to encompass the
global scenario, tracking the trajectory of inflation from the initial
impacts of the COVID-19 pandemic in 2020 to the complex challenges
faced in 2023. The essay examines the concerted efforts of
governments worldwide in implementing policies to curb inflation
amidst geopolitical tensions, supply chain disruptions, and evolving economic landscapes.
Through a comprehensive exploration of the policies enacted by the
Vietnamese government, including interest rate support, tax and fee
reviews, and structural reforms, the study evaluates their
effectiveness in maintaining economic stability and managing
inflation. The global perspective emphasizes the necessity for
cautious monetary policies on a worldwide scale, urging countries to
remain vigilant until inflation reaches sustainable levels.
In essence, this essay provides a nuanced understanding of the
macroeconomic strategies employed by Vietnam and the global
community to control inflation during a transformative period. It offers
insights into the challenges faced, the effectiveness of policy
measures, and the implications for future economic landscapes,
contributing to a broader comprehension of macroeconomic dynamics in a rapidly changing world. 1 TABLE OF CONTENTS
ABSTRACT.............................................................................................1
TABLE OF CONTENTS............................................................................2
ACKNOWLEDGEMENT...........................................................................4
FIGURES................................................................................................5
TABLE...................................................................................................6
TASK ASSIGNMENT...............................................................................7
INTRODUCTION.....................................................................................8
1. THEORETICAL BASIS OF INFLATION................................................9
1.1 Definition of inflation................................................................9
1.2 Reason cause to inflation..........................................................9
1.2.1 Demand-pull........................................................................9
1.2.2 Cost-push............................................................................9
1.2.3 Inflation expectations..........................................................9
1.3 Consequences of inflation.........................................................9
1.4 Solutions to control inflation...................................................10
2. SITUATION OF VIETNAM’S INFLATION FROM 2020 TO 2023.........10
2.1 The situation of inflation in Vietnam from 2020 to early 202310
2.2 The policies of the Vietnamese government to control the
inflation rate....................................................................................13
2.2.1 Promote 2% interest rate support policy...........................13
2.2.2 Review tax and fee reduction...........................................13
2.2.3 Implement restructuring in most fields.............................13
2.2.4 Complete for the difficulties of production and business. .14 2
2.3 Forecasting the inflation rate in Vietnam at the conclusion of
the year 2023..................................................................................14
2.3.1 Forecast of the Asian Development Bank (ADB)...............14
2.3.2 Forecast by Dr. Nguyen Duc Do - Deputy Director of the
Institute of Financial Economics...................................................15
2.3.3 Forecast by Dr. Nguyen Bich Lam - Former Director
General of the General Statistics Office........................................16
3. SITUATION OF THE WORLD’S INFLATION AND THE SOLUTIONS
FOR VIETNAM.....................................................................................17
3.1 The situation of inflation in the world from 2020 to early 2023 17
3.1.1 The situation of the inflation in the world from 2020 to 2022 17
3.1.2 The situation of inflation in the world from early 2023.....18
3.2 The policies of the world government to control the inflation rate 19
3.3 Solutions for Vietnam’s situation............................................19
4. THE TRENDS IN INFLATION FOR VIETNAM AND THE WORLD IN THE
NEAR FUTURE, 2024-2025..................................................................20
4.1 Economic experts's forecasts of Vietnam’s inflation trends....20
4.2 Economic experts's forecasts of global inflation trends..........21
CONCLUSION......................................................................................22
REFERENCES......................................................................................24 3 ACKNOWLEDGEMENT
First of all, We would like to send to the lectures of Hoa Sen University
our sincerest and deepest thanks.
In particular, We would also like to give our warmest thanks to the
lecture, Mr Phung The Vinh. You have wholeheartedly guided us in the
learning process as well as in completing the thesis. We could not
have completed this essay without you.
We have tried to complete this essay, but errors may not be avoided.
We respectfully hope to receive advices from lectures to improve the article. 4 FIGURES
Figure 2.1 CPI growth rate in 2020 (%)..............................................10
Figure 2.2 CPI growth rate of the years in the period 2016 - 2021 (%)
...........................................................................................................11
Figure 2.3 CPI growth quarterly and monthly.....................................12
Figure 2.4 Average CPI growth rate in months of 2023 (%)...............13
Figure 2.5 Prime Minister Pham Minh Chinh and Deputy Prime Minister
Le Minh Khai chaired the meeting on maintaining macroeconomic
stability, controlling inflation, promoting growth and ensuring major
balances of the economy...................................................................14
Figure 2.6 View of the workshop........................................................15
Figure 3.1 Global inflation rate in 2019 – 2022..................................17
Figure 3.2 Inflation rate in the United States in 2019 – 2022.............18
Figure 4.1 Expected average CPI inflation in Vietnam.......................20
Figure 4.2 Inflation rates around the world are forecast to have
peaked................................................................................................21 5 TABLE
Table 1. Task Assignment.....................................................................7 6 TASK ASSIGNMENT N Student Name Assigned tasks Evalua Note o. ID te number 1. 2220696 Đàng Make outline 100% Team 6 Thục Huệ leader Prepare content for abstract, task assignment, introduction, conclusion. Synthesize information & Make Word report 2. 2220743 Nguyễn Make outline 100% 6 Thị Hường Prepare content for part.3 Summary information & Make PowerPoint presentation 3. 2220544 Bùi Thị Prepare content for 100% 5 Hồng acknowledgement Ngọc and part 1 4.
2220527 Trầm Thị Prepare content for 80% Absent in 8 Tiền part 2 and part 4 the Phương presentat ion day 5. 2220667 Nguyễn Prepare content for 100% 8 Thị Thu part 2 and part 4 Nga 7 6. 2220599 Nguyễn Prepare content for 100% 6 Hoàng part 2 and part 4 Thanh Nhã
Table 1. Task Assignment 8 INTRODUCTION
The global economic landscape is an intricate tapestry woven with
numerous threads of interconnected factors, where the delicate
balance of inflation plays a pivotal role in shaping nations' prosperity.
This essay embarks on a journey through the years 2020 to 2023,
scrutinizing the complex dynamics of controlling inflation in both
Vietnam and the global economy. Against the backdrop of the COVID-
19 pandemic's unprecedented disruptions, this period unfolds as a
critical juncture marked by challenges, transformations, and strategic responses.
In the Vietnamese context, the government grapples with the task of
managing inflation within a rapidly evolving economic terrain. A
synthesis of domestic policies, global economic trends, and the
inherent dynamism of Vietnam's economy forms the crux of our
exploration. As the nation strives for sustained growth and stability,
the study delves into the multifaceted strategies implemented by the
Vietnamese government, ranging from interest rate support to tax and fee reviews.
Zooming out to the global stage, the essay extends its gaze beyond
borders, capturing the trends and intricacies of inflation from 2020 to
2023. It navigates through the ripple effects of the pandemic,
geopolitical tensions, and shifts in supply chains, offering a panoramic
view of the challenges faced by nations worldwide. The concerted
efforts of governments on the global front to curtail inflation become
a focal point, emphasizing the significance of coordinated strategies in an interconnected world.
In essence, this exploration encapsulates the essence of
macroeconomic intricacies during a transformative period, shedding
light on the nuances of inflation control and its implications for both
Vietnam and the global community. As we unravel the layers of
economic strategies and responses, a comprehensive understanding
emerges, poised to inform future policymaking and contribute to the
broader discourse on navigating economic complexities. 9
1. THEORETICAL BASIS OF INFLATION 1.1 Definition of inflation
Inflation is a general increase in prices, which can be understood as a
fall in the purchasing value of money. The amount of decrease in
purchasing power can be thrown back in the average lift in price of a
chosen basket of goods and services. A growth in price indicated\ a
percentage that one unit of currency buys lower than in perior
periods. Inflation is the opposite of deflation. Deflation happens when
prices decrease and purchasing power increases. 1.2
Reason cause to inflation
The main reasons of inflation can be divides into three foremost
types: Demand-pull, Cost-push, Inflation expectations 1.2.1 Demand-pull
'Demand-pull inflation’ is due to evolutions on the demand side of the
economy, while ‘cost-push inflation’ is caused by the result of higher
input costs on the provision side of the economy. Inflation can also
effect from ‘inflation expectations’, what households and businesses
think will occur to costs in the future can real influence costs in the
future. These different causes of inflation are reflected by the Reserve
Bank when it investigates and guesses inflation. 1.2.2 Cost-push
Cost-push inflation occurs when general prices increase due to rises in
the cost of salaries and primal matter. Higher costs of production can
decline the amount of total production in the economy. The demand
for goods hasn't changed, so the priceses from manufacture are
passed onto costumers creating cost-push inflation. 1.2.3 Inflation expectations
Inflation expectations are the amount at which consumers,
businesses, investors—expect prices to rise in the future. They
important because actual inflation relies on what we expect it to be. If
everyone wants prices to rise, example, 3% over the next year,
businesses will want to raise prices by at more than 3 percent, and
workers will want alike-sized raises. If inflation expectations increase
by 1%, actual inflation will increase by 1% as well. 10