1

THE MINISTRY OF EDUCATION AND TRAINING
NATIONAL UNIVERSITY OF ECONOMICS

KHUAT DUY TUAN MANAGEMENT OF INFLATION-TARGETING
MONETARY POLICY IN VIETNAM'S ECONOMIC
TRANSITION PROCESS

SPECIALITY: ECONOMICS, FINANCE AND BANKING
CODE: 62.31.12.01

SUMMARY OF DOCTORAL THESIS
Opponency 1:
Opponency 2:
Opponency 3:

This thesis will be defensed before the University-level thesis committee met at the National
University of Economics, Hanoi

At o’clock, day month year 2012 The thesis is available for examination at:

1. National Library

2. Library of National University of Economics
3 PREAMBLE

managers.

6. Thesis structure: the thesis comprises of three chapters:

Chapter 1: Basic issues on inflation-targeting monetary policy management in the economic
transition process

In this Chapter, the thesis discusses about the following contents:

1. Basic issues on inflation

- In this part, the thesis studies, analyses concepts and measures in respect of
inflation; different schools of thought as to inflation and the causes of inflation: the theory of the
monetary school stated that "inflation is always and everywhere a monetary phenomenon." while
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the theory of inflation structure argued that inflation is caused by inadequate economic structure,
economic imbalances due to uneven development, etc. or demand-pull inflation is asserted to
arise when aggregate demand in an economy outpaces aggregate supply. Another cause of
inflation is demand pull, that is, the increase in price and output exceeds the potential output,
causing a change in aggregate demand (the demand curve moves to the right), this is driven by
the adoption of a loose monetary policy and expansionary fiscal policy by the Government. Cost-
push inflation is caused by a drop in aggregate supply (potential output) (the supply curve moves
to the left). This is also due to increased prices of inputs. In addition, inflation arises when
money supply increases, i.e. monetary growth exceeds economic growth, which results in
imbalances between money and goods, causing a decline or increase in price. Factors affecting
inflation includes (i) Demand-supply imbalances (ii) supply shocks and (iii) production costs.

- The relationship between inflation and economic growth objectives in
monetary policy management. When inflation arises, it generates changes in the economic

monetary policies. There are four solutions to achieve such goal: (i) exchange rate targeting, (ii)
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monetary quantities targeting, (iii) nominal GDP-targeting and (iv) inflation-targeting monetary
policy.

In order to pursue an inflation targeting policy, the central bank of a country must satisfy
two conditions as follows: (i) The management of monetary policy by the central bank must be
independent to a certain extent and (ii) the Government should not set some indicators such as
wage levels, employment levels, etc at a too high level. Important bases for establishing an
inflation targeting monetary policy include: (i) who will set inflation targets, (ii) measures of
target inflation rates, (iii) Appropriate time for pursuing an inflation targeting policy and (iv) the
enforcement of a monetary policy must be public, transparent and flexible.

Assessment of strengths and weaknesses of this policy. Strengths (i) public understanding
of inflation objectives; (ii) the transparency of inflation objectives making inflation estimate
close to the objectives; (iii) decreased pressure on the central bank in pursuing other objectives;
(iv) relative independence of the central bank in order to effectively cope with possible shocks
and (v) avoidance of sudden changes in monetary turnover. Weaknesses: (i) effects of the policy
on inflation are so slow in term of time, so it is not easy for the central bank to control inflation
and (ii) efforts for inflation targeting leads to unsustainable growth. The central bank uses tools
for the purpose of managing monetary policies such as providing for compulsory reserves;
interest rates of the central bank; open market operations, etc. furthermore, the central bank also
utilizes other tools such as exchange rates, foreign exchange swaps, etc.

3. Basic characteristics of transitional economy influencing management of
inflation-targeting monetary policy

Specific characteristics of the market economy include: (i) The circulation of materials
from stage to stage of the production process and from production to consumption is all made by

bank; (5) the monetary market is still an infant. In the transition process, the monetary market
gradually takes shape, the central bank, therefore, still has to manage monetary policies in a
direct and indirect manner; (6) Awareness of the market economy and management of monetary
policies. Awareness of finance, monetary, growth is still uneven. In the initial phase of the
transition process, sectors and management levels usually interfere deeply with banking
operations, etc. while monetary policies are implemented for multiple purposes, creating a public
pressure on the management of monetary policies of the central bank; (7) The number of subjects
directly affected by monetary policies increases on a continuous and diverse basis; (8) public
sentiment of cash preference and dollarization. Cash use and dollarization among the public is so
popular, payment through banks is still undeveloped, etc. creating obstacles and limitations to the
management of monetary policies of the central bank and (9) the system of credit institutions
which communicate monetary policies. The classification of credit institutions gets more and
more diverse, so management capacity improvement, technology modernization, human resource
development and service diversification are so important, etc.

4. Experience of foreign countries in management of inflation-targeting monetary
policies: this thesis studies experience of five countries and some developed countries,
draws out lessons therefrom for Vietnam.

- The National Bank of Poland (NBP): In management of inflation-targeting monetary
policies, NBP is applying such refinancing methods as discounting of valuable papers, lombard
credit (overnight credit) and normal refinancing (longer term). In order that refinancing can meet
temporary shortage of capital in clearing, NBP has set up a short-term (10-day) information
system for monitoring the liquidity position of banks. So as to make use of abundant funds of
banks, NBP issued one-month notes. Other lending demands for refinancing are met in the form
of rediscounting notes or secured loans.

- The People's Bank of China (PBC) has used three important tools in management of
monetary policies, namely interest rates, exchange rates and compulsory reserves. The priority
objective of the interest rate policy is to promote the institutional accomplishment of the

their base interest rates with a range of +/-0.5% of the base interest rates of such two big banks.
Actual lending level of commercial banks will be base interest rates plus risk premium (not
exceeding 4% and applying flexibly to each loan).

- Singapore Monetary Authority: Because of characteristics of the financial market,
Singapore Monetary Authority only pays attention to exchange rates while interest rates will be
determined by the market.

- Bank of Korea: The interest rate policy is the main tool for speeding up the economic
growth rate. Currently, the Bank of Korea manages maximum interest rate cap at which credit
institutions make loans to customers. Based on this interest rate cap, the central bank flexibly
provides for refunding for commercial banks depending on objective requirements of increase or
decrease in the amount of money they may lend out by setting refinancing interest rates.

- Central Banks of several developed countries: Some developed countries tend to turn
into indirect management of monetary policies on the basis of development level of the market,
management and controlling capacity of credit institutions and capacity of central banks to use
indirect management tools in respect of monetary policies. In countries using indirect tools for
management of market interest rates, due to the development of the monetary and financial
market, standard market interest rates have been established and the market interest rate curve
has been set up accordingly. Floating exchange rates are determined by the interaction of supply
and demand. The top priority objective of central banks is to control inflation, stabilize the
financial market and secure the payment system for the economy. Because of specific
characteristics and objectives of each country, tools used in management of monetary policies
are different.
8 * Lessons drawn for Vietnam:
- Using compulsory reserve tool in a flexible and effective manner. This is a strong and

1. Inflation situation and causes of inflation in Vietnam in economic transition process.

In this part, the thesis has studied, analyzed and assessed:

- Basic features of Vietnam's economy in the economic transition process: There is still
no synchronous and close coordination among monetary policies, fiscal policies, investment
policies and commercial policies. Meanwhile, monetary policies pursue quite a few objectives.
Institutions governing operations of the monetary-financial market are not yet complete. The
State Bank still has to use numerous direct tools for managing monetary policies. The
Government participates directly in the conduct of monetary policies or the State Bank has to
report to and consult the Government about changes of monetary policy management tools. The
capacity to build institutions remains limited, economic information and monetary statistics
systems are still inadequate. Thoughts and awareness are still dominated by those of the subsidy
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system, terms, knowledge, rules and requirements of the market economy are controversial, ways
of understanding and approaches are still different. In the first phase, state-owned enterprises
were so popular in the economy while non-state enterprises only started developing. Income of
people remained low and the sentiment of using cash in payment was so popular, bank payment
services were still undeveloped, the value of the local currency remained unstable, inflation rates
and dollarization levels were still so high. The organization and operation structure was
gradually transformed from subsidy mechanism into market mechanism, etc.

- Inflation situation in 1999-2011 period:
+ Growth in the period of deflation, 1999-2003. Due to the regional economic downturn,
as well as the frequent fluctuation of the national economy, the country witnessed the lowest
inflation rate than ever before. The government had to implement a demand stimulus policy to
stop the economic downturn. However, because of the inefficiency in monitoring financial,
monetary and products policies, this policy was considered not meeting the expected result.
+ Inflation and growth in 2004 – 2010 period.

Other reasons including bad demand and supply balancing, price stabilization and market
control, etc. had a negative effect on the economy. In this situation, the Government introduced 8
classes of solutions to inflation control, macroeconomic stability and social security. SBV
reduced base interest rates to pull down loan interest rates. This was the first time that the SBV
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had ever used basic interest rate tools together with regulations on the ceiling loan interest rate to
navigate the market and provide capital support for enterprises for their production and business.
In parallel, the SBV lowered compulsory reserve ratio and loan interests on rediscount, raised
compulsory reserve deposit interest rates, etc. to support capital for commercial banks.

Inflation in 2009 and two- side effects of the “demand stimulus package”. In spite of the
shadow of the global financial crisis, inflation and GDP growth were curbed at 6.82% and
5.32%, respectively. The most important solution in 2009 was the consumption and investment
demand stimulation, economic downturn prevention, sustainable economic growth and social
security policy. The main solution to promote demand was using the state budget to directly pay
for investment activities and spending according to the schedules approved by competent
authorities. The first demand stimulus package worth USD1 million was used to support 4%
interest of commercial banks for loans with the term of less than one year of small and medium-
size enterprises with the charter capital of under VND10 billion, less than 300 employees, no
overdue debt and outstanding taxes. The second package was of larger size, with longer lending
period (2 years), looser conditions and expanded eligibility. The two-side effects of the “demand
stimulus package”: (i) positive effects: being a buoy to rescue enterprises that were in difficult
situation, offering more chances for them to expand production, contributing to lower
unemployment rate and ensuring social stability. Helping commercial banks to improve fund
raising and credit lending, without lowering their deposit interest rates, expand outputs due to not
increasing loan interest rates. In addition, demand stimulus capital sources facilitated investment
activities in socio-economic infrastructure development, maintained economic growth rate. (ii)
negative effects: misuse and uncontrolled and ineffective use of demand stimulus packages could
cause some unpredictable negative consequences such as loss or waste of funds, increase of the

0.23%
1.31%
1.05%
1.86%
0.27%
1.98%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
J
an
ua
r
y
February
March
April
M
ay
J
u
ne
J
u
ly
Au
g

real rates of interest, SBV set the loan interest rate ceiling and deposit interest rate floor (June
/1992 - 1995). Liberalizing deposit interest rates (1996 – July/2000). Controlling base interest
rates plus the margin and removing the lending interest rate ceiling (from August/2000).
Liberalizing foreign currency lending interest rates, switching to negotiable lending interest rate
mechanism (from June/2001 to 2008). Liberalizing VND lending interest rate, switching to
negotiable lending interest rate mechanism (from 6/2002 to June/2008). From June/2002 to date
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SBV has managed the market interest rate through indirect instruments. From April/2010 to the
end of 2011, credit institutions have managed lending interest rate based on the base interest rate
announced by SBV. The liberalization of interest rate aims to clarify lending activities of
commercial banks, limit unfair competitions and bring back interest rates to the real value. SBV
continues to take flexible control of refinancing rates, discount and interest rates on open market
operations (OMO) to regulate the monetary market interest rates.

Chart 2.1: Changes in VND lending interest rate and deposit interest rate
from April 2010 to June 2011

Source: SBV [1] [2] [48]

- Exchange Rate tool: During the past years, Vietnam has made a dramatic progress when
adjusting exchange rates in line with the market mechanism. Before 1989, Vietnam
implemented fixed exchange rates. From 1990 to 2009, Vietnam ran the market exchange
rate regime under the Government’ control, exchange rate managing mechanism has been
gradually relaxed. Official exchange rate plus the trading margin (1990 – February/1997);
Official exchange rate plus the trading margin has been gradually relaxed (February/1997 –
1998), the average exchange rate regime in the market has been gradually relaxed (from 1999
to present). This has been a breakthrough in the exchange rate management mechanism so
far.


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1999
February 26
th
,
1999
-
Average exchange rate
in the Inter-bank
market of that day
±0.1%
2002 July -
Average exchange rate
in the Inter-bank
market of that day
±0.25%
2003 -
Average exchange rate
in the Inter-bank
market of that day
±0.25%
2004 -
Average exchange rate
in the Inter-bank
market of that day
±0.25%
2005 -
Average exchange rate
in the Inter-bank

2008
November 7th -
Average exchange rate
in the Inter-bank
market of that day
±3%
Source: State Bank of Vietnam [1] [2] [48]

- Compulsory reserve ratio tool: a strong tool used by the State Bank of Vietnam (SBV)
to affect lending and then affect the money supply. SBV implemented it over various periods:
Compulsory reserves on total sum of deposits, separated account are not entitled to interests
(from 1992 to 1994), compulsory reserves on 12-month deposits, together with payment
accounts, are maintained on a daily and interest-bearing basis for excessive compulsory reserve
(from 1995 to 1998); increasing compulsory reserves and applying compulsory reserves to the
average balance of current deposit balance (from 1999 to 2003); prolonging the compulsory
reserve period to less than 24 months (from June/2003 to January/2008); prolonging the
compulsory reserve period to more than 24 months (from February/2008 to 2009); paying
interests for compulsory reserves and not paying interests on excessive reserves in VND, and
vice versa for reserves in foreign currencies.

Table 2.10: Movements in compulsory reserve ratio in the 2002-2011 period

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Applied day Under 12 months Above 12 months
VND
Foreign
Currencies
VND
Foreign

of tightened or relaxed monetary policy; from March of 2003 to present, refinancing interest
rates has served as ceiling interest rates, while rediscount interest rates has acted as floor interest
rates in the inter-bank monetary market and OMO interest rate has been the regular management
instrument of the SBV.

- Credit line tool: Since 1994, the SBV has used credit lines for big commercial banks to
limit lending speeds in order to control inflation. However, because the SBV has only distributed
credits to some commercial banks, the equality in competition has been restricted, and credit
lines not adjusted flexibly in accordance with market signs have affected the ability to meet
capital demands for the economy, thus, since 1998, this tool hasn’t been used regularly, only
when the economy is in danger of high inflation.

- Open market tool: Since July of 2000, the SBV has launched open market operations
and this has become SBV's flexibly-regulating and main instrument so far. This is the new step
in managing monetary policy, shifting from direct to indirect management in accordance with
international common practices and development trends of the economy. The trading instrument
in the market is short-term and long-term valuable papers. Over the past year, the SBV has used
open market operations flexibly and efficiently to ensure the implementation of policy purposes
targeting at interest rates and liquidity for credit institutions. The trading turnover in the open
market has recorded year-on-year increase for both sales and purchases and the trading volume
in each session gets higher and higher with the average increase of from 2,577 billion dong per
session in 2008 to 3,240 billion dong per session in 2011. This shows that OMO is an important
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channel for money supply and capital mobilization of the SBV in order to implement the
purposes of monetary policy.

Table 2.16: Trading revenues of open market operations over the years from 2008 to
2011.



2,577

2009
966,880.460

100,162

966,980

-

329

2,939

2010
2,101,420.401

7,294.919

2,108,715

211,5%

491

3,240

6 months


Over the past years, Vietnam’s monetary policy has pursued multiple purposes:
stabilizing the value of the local currency; curbing inflation; boosting socio-economic
development; ensuring national defense, security and improving the people’s lives. Monetary
policy management has recorded successes and restrictions as follows:

* About success: (1) To contribute to stabilize macro-economy, push back and control
inflation, stabilize the purchasing power of currency to help Vietnam economy obtain high
growth speed, move economic structure, create employment and eradicate hunger and alleviate
poverty; (2) tools for the management of monetary policy is more and more improved, gradually
changing from the direct to indirect management based on the market rules. The monetary policy
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becomes a key tool promoting the economic growth and stabilizing macro-economy; (3) to
strengthen public belief to the banking system, prevent the situation of monetary disorder and the
risk of insolvency of credit organization. To create the opportunity for enterprises, production
households to access to the loan stock from banks, contribute to prevent economic depression;
(4) measures for interest rate management of the State Bank of Vietnam is valid, effective to
commercial banks representing the inter-bank market interest rate fluctuated in the corridor
among refinance interest rate and rediscount interest rate, mobilizing rate and lending rate of
commercial banks based on the demand and supply, increase or decrease together with the
margin of management levels of the SBV; (5) Basic interest rate is both the tool for market
regulation and the signal for guidelines and solution to the SBV’s management of monetary
policy and has become an important index in the monetary finance market followed by the public
and domestic and foreign investors; (6) basic interest rate of foreign currency has been
liberalized and the management mechanism of local currency interest rate is also following such
trend and the currency market increasingly integrates into local markets and the international
market; (7) to create self-control, dynamic and more flexible rights for credit organizations in
making decisions on the mobilizing rate and lending rate on the basis of market developments
and tools; (8) to quickly promote the capital turnover in the economy and the capital turnover


Government so the sense of initiative in managing OMO by the SBV is reduced. Sometime, the
SBV is embarrassed when regulating OMO’s interest rate in the relationship with other interest
rates.

* Reason for restrictions:

- Objective reasons: Firstly, Vietnam economy is in the process of conversion with low
point of departure. The monetary policy is newly built and enforced for more ten last years it is
still like a fish out of water in both theory and practice. Secondly: Commodity economy of
Vietnam is in the first stage therefore the market is not stable. The efficiency of market rule has
not been promoted completely, supply – demand relationship is intervened by subjective factors
not complying with the market rule. Thirdly, the monetary finance market which is
underdeveloped makes tools of monetary policy difficult to promote their efficiency. Fourthly:
the SBV has actually not been a monetary policy planning agency, basically, it is merely a
monetary policy implementing agency and the SBV’s management of monetary policy is
governed by the Government’s decisions. The monetary policy is also excessively dependent on
other policies and relatively many other agencies participate in directing and supervising the
construction and implementation of monetary policy. Fifthly: information deficiency causes
difficulties for the construction and implementation of monetary policy. The accuracy of
calculation results given is not high and this makes the SBV regularly passive in adjusting at this
market demand contrary to the nature of monetary market which takes the initiative in creating
changes in the amount of money in order to direct monetary demands to macro-economic targets.
Sixthly: The combination between ministries and branches is significantly limited in
promulgating policies and instructing the implementation of laws.

Besides, there are some other reasons such as small scale of economy, weak capacity of
competition. The monetary policy is implemented in a multi-target manner, so the management
mechanism becomes difficult, complicated. Public awareness is limited, the economy is greatly
risky, the dollarization state is rather high and the lag of policies is large not following market


The SBV’s orientation of management: At present, the SBV’s management of monetary
policy has been implemented in the multi-objective way, namely: stabilize money value, curb
inflation; promote socioeconomic development, ensure national defense, security and improve
the people’s life, so the management is inconsistent, sometimes policies towards this objective
annuls other ones while tools of managing monetary policy is incomplete and inconsistent.
Hence, the efficiency of monetary policy is not high, not achieved as desired. In the next time,
the management of monetary policy should be changed from multi-objectives to the leading
objective namely curb inflation, stabilize money value and ensure the safety for system.
Accordingly, the management of monetary policy should be changed from the volume control to
the interest rate control, it is necessary to continue implementing tools: refinance, interest rate,
exchange rate, compulsory reserve, open-market operation and other tools based on the market
principle. The system of processes should be continued completing in the transparent, clear and
stable direction to ensure the equality, safety for subjects participating in the market.

In order to implement the monetary policy taking the inflation control as a management
objective, it is necessary to have conditions such as (i) improve the SBV’s independency,
associated with the reform of organizational structure and improving the SBV’s capacity. To
strengthen the Central Bank functions of the SBV to implement the monetary policy in the
flexible manner. To rearrange and clearly determine functions and tasks of units under the SBV
in the direction of focusing on management, control and improvement of specialization; (ii) To
strengthen the ability to forecast the inflation, the calculation of CPI inflation index should be
reconsidered. The basic rate of inflation should be applied in addition to the inflation rate
nowadays; (iii) To strengthen the ability to control tools of monetary policy to obtain objectives
proposed such as interest rate tool, open-market operation, refinance tool and compulsory reserve
tool…(iv) to increase the obviousness, consistence and reliability of monetary policy and (v) the
close coordination between ministries and branches is required, especially the Ministry of
Finance, the Ministry of Industry and Trade, the Ministry of Planning and Investment. In the
construction work, the system of inter-ministerial circular on the information collection,
exchange as well as information supply to the public. The SBV and the Ministry of Finance is

compulsory reserves to ensure the ability to make payment, stabilize interest rate. The Central
Bank should regulate a portion of compulsory reserves in the form of public bond with the view
of creating conditions for the development of bond markets. The interest rate of compulsory
reserves should be appropriately prescribed to reduce expenses in activities of credit
organizations.

Fourthly: To synchronously coordinate other tools of monetary policy to improve the
efficiency of currency regulation. The use of tools of compulsory reserve shall rapidly,
drastically affect the market; therefore the close coordination with other tools is required to
ensure that the market is not significantly disordered. Every adjustment of compulsory reserve
ratio should be only from 0.5% t 1% and other tools must be used to support, neutralize and
annul adverse impacts of compulsory reserve on money market.

Fifthly: To improve the quality of forecasting currency developments because this is an
important base, a decisive phase to the efficiency of control and the initiative in the management
of monetary policy. For this reason, specialized software must be equipped to serve the forecast
work; to build data stocks and regularly update information serving the forecast work; to
regularly train and improve the professional qualification for forecasting staffs; to establish the
network system to monitor developments in the currency market in a timely, accurate and
updated manner as the basis for analyzing and adjusting forecasts in a timely way.

Sixthly: To perfect the system of information technology in the management of monetary
policy. To regularly upgrade leased lines to ensure the through-transmission of information about
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the compulsory reserve of credit organizations when the number of credit organizations grows
more and more increasingly.

Seventhly: To strengthen the inspection and check of compliance with the SBV’s
regulations to credit organizations. The SBV establishes the information system reporting daily

inflation and economic growth, analyzes Vietnam economic situation during the past years and
brings out the optimal inflation threshold to Vietnam.
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LIST OF RESEARCH WORKS RELATING
to theses promulgated of the author

1- Khuat Duy Tuan (2000) “International experience about reorganizing and strengthening the
banking system”, Banking Magazine, No.8-2000, Pages 62-64.

2- Khuat Duy Tuan (2000): “Solutions to improve the system of organization, auditing control to
the State Bank of Vietnam and credit organizations in Vietnam”, Banking industry-level
Scientific Research Topic at the, Code KNH 98.04, decision on recognizing the topic completion
No.451/2000/QD-NHNN9, dated October 20, by the Governor of the State Bank of Vietnam.

3- Khuat Duy Tuan (2002): “A number of issues about trade and investment in executing the
Vietnam-US trade agreement”, Banking Magazine NO.1+2-2002, pages 114-117.

4- Khuat Duy Tuan (2004): “Competition, awards importantly contributed to the success of
banking operation”, Competition and Awards Journal No.10-2004, pages 29-31.

5- Khuat Duy Tuan (2005): “Promoting consumption lending – Indispensable trend banking
operations in the market economy”, Banking Magazine No.9-2005, pages 51 – 53.

6- Khuat Duy Tuan (2010): “The SBV’s management role against risks in the operation of
commercial banks”, Banking Magazine No.5-2010, pages 18-20.

7- Khuat Duy Tuan (2011): “Discussing the coordination between the fiscal policy and monetary
policy in the inflation control in Vietnam”, Banking Magazine No.2-2011, pages 12-15.
22


The thesis proposes the close, synchronous coordination among between monetary
policy, fiscal policy and other macro-economic policies to help Vietnam’s economy to obtain a
reasonable rate of inflation and high growth not only in quantity but also in quality.

The thesis asserts that during the management of inflation-targeting monetary policy, the
method of approach taking the inflation as an objective in managing monetary policy is effective
to Vietnam’s economy. This new method of approach shall break through the traditional
mechanism of managing monetary policy nowadays, because when taking the inflation rate as a
sole and direct objective in managing monetary policy, tools for managing monetary policy must
focus on and aim at such sole objective. On the basis of seeking a inflation threshold reasonable
for Vietnam, the thesis proposes a number of specific solutions to the management of monetary
policy in the economic transition process including: (i) for interest rate policy, the inter-bank
short-term interest rate should be chosen for the management objective; (ii) for exchange rate
policy based on the market supply and demand with the State’s regulation; (iii) solution to
improve compulsory reserve tools, expand the base for calculating compulsory reserve, adjust
the period of calculating compulsory reserve and the period of maintaining compulsory reserve,
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pay reasonable interest rate to compulsory reserve deposits…; (iv) coordinating to improve the
efficiency of monetary regulation; (v) improving the quality of forecasting monetary
developments…and some supplementary solutions to enhance the efficiency of managing
inflation-targeting monetary policy in Vietnam’s economic transition process

Scientific instructors Postgraduate