http://chinawestproducts.com/08/01/viet-nam-financial-crisis/ http://newsdawn.blogspot.com/2011/02/financial-crisis-in-vietnam.html http://www.eai.nus.edu.sg/BB447.pdf http://www.atimes.com/atimes/Southeast_Asia/LB10Ae01.

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Dung Nguyen/ Saravung Sun AF-495 April 26, 2012 Current Event- Financial Crisis in Vietnam In the past 10 years, Vietnam has always been one of the fastest growing countries in Asia with a growth rate of 7.5% annually. Since the economy turned up-side-down made it hard for Vietnam to maintain growing at that rate. In order to keep up with that rapid economic growth, the countries has to continuously raise their price until a point that leads the country into a criticized level of inflation. If the government is not able to effectively adjust the countrys monetary policy, Vietnam can become a new financial disaster in the region (Shamsi, 2011). There was a point in time when Vietnam was viewed by many other countries as the second China for its rapid economic growth. In 2003, Vietnam implemented its Free Trade Area, placing it at the position of one of the most important trading partners in the ASEAN group. During this period of rapid growth in trade, Vietnam had solved a lot of problems with foreign debts and made new investments into the country. However, in the last two year, the confidence level of Vietnams economic prospect has dramatically gone down. Up to this point, the inflation level of the country has reached above 25%; and trade deficit gone up to US $14.4 billion (Shamsi, 2011). Vietnam was in a hurry to achieve an uncertainty level of export, accepting the monetary policy of devaluating the Dong way too much in order to encourage more export out of the country. The result was that Vietnamese Dong lost so much value on the market was not able to pay for a significant amount of enterprise import. Within a short period of time, Vietnamese economy all of a sudden has gone up side down and faced severe inflation and its economic bubble has burst. For so many years before the financial crisis, Vietnam was mistakenly viewed by the outside world as a promising country with a bright future and prospect. For those who have a deep insight about the root of the government structure would never believe in the well-being appearance of the economy. The destructive ruling party has always been the problem, but they never want to face the truth. In 1986, Vietnam has practically gone through an economic reform, promising to transform in to a free market socialist economy. After years and years of the

transformation process, the truth about Vietnams present danger and crisis was brought into light in 2006 at the Annual General Assembly of the Communist Party of Vietnam. The transition of leadership for both Vietnam's party and government was taken from one generation and passed down to another has proven that the Communist Party of Vietnam is the single domination that took the entire controls over Vietnam's economic, societal and political for the whole time (Cryspin, 2010)