Vietnam’s Socio-Economic Development

Level of the impact on capital adequacy ratio when banks announce the adoption of Basel III - The difference-in-differences method’s approach

Le Phan Thi Dieu Thao — 2025-12-20

This study yields empirical results from 23 commercial banks divided into two groups: a group of 12 commercial banks exclusively applying Basel II and a group of 11 commercial banks that announced the implementation of the Basel III management framework. The analysis covers the period from 2020 to the second quarter of 2024, employing the difference-in-differences regression method. The findings indicate no significant difference in the impact on the capital adequacy ratio between commercial banks announcing Basel III implementation and those that continued applying Basel II. Based on these empirical results, the study identifies specific characteristics of the research sample and proposes appropriate measures within the context of current roadmap encouraging Basel III adoption among commercial banks in Vietnam.

Renewing Vietnam’s economic growth model: from policy to practice

Vu Trong Lam — 2025-12-20

This article analyzes the process of developing the Communist Party of Vietnam (CPV)’s theoretical thinking on renewing the economic growth model over nearly 40 years of Doi Moi (Renovation process initiated in late 1986), clearly pointing out its achievements and limitations. From there, it proposes viewpoints, principles, and solutions for innovation in Vietnam’s economic growth model in the coming years. The CPV’s theoretical thinking on the renewal of the economic growth model has been formed and developed in association with the comprehensive national renovation process from 1986 to the present. This development is a process of continuous movement, both originating from the internal requirements of the economy and adapting to the international context, reflecting the creativity in applying and developing Marxism-Leninism and Ho Chi Minh’s thought in Vietnam’s reality. Nearly 40 years of Doi Moi have proven the CPV’s correctness and creativity in economic development orientation. Vietnam’s economic growth model has shifted from dependence on cheap labor and resource exploitation to one that relies more on science, technology, and innovation. However, limitations in productivity, quality, and competitiveness indicate that renewal of the growth model remains an inevitable and urgent requirement.

Impact of fiscal decentralization on economic growth: empirical evidence from Vietnamese localities

Nguyen The Vinh — 2025-12-20

This study employs a panel data fixed-effects model to examine how fiscal decentralization influences economic growth across 63 provinces in Vietnam from 2010 to 2022. Revenue decentralization negatively affects GRDP growth. In contrast, expenditure decentralization and self-collected revenues have a positive impact. Based on these insights, the study offers several recommendations for fostering economic growth by adjusting Vietnam’s fiscal decentralization framework. Key suggestions include: (i) enhancing the decentralization of local revenue sources, fully retained by local governments or proportionally shared, and (ii) strengthening expenditure decentralization by granting local authorities greater autonomy to manage budgets effectively according to output-based commitments. Additionally, other channels that support economic growth, such as improving institutional quality and increasing non-state investment, should also be enhanced.

Effects of economic growth, trade expansion, poverty on income inequality in provinces in Vietnam

Le Xuan Thai — 2025-12-20

The objective of this research is to determine the impact of economic growth, investment capital, budget expenditure, trade expansion, poverty, institutions on income inequality in provinces in Vietnam. This research utilized data collected by the General Statistics Office of Vietnam from 2016 to 2022, combined with the Vietnam Household Living Standard Survey reports from the same period. Empirical results derived from Two-Stage Least Squares (2SLS) regression method reveal that economic growth, trade expansion, budget expenditure on medical care and poverty have effects on income inequality in provinces. Economic growth and poverty rate have positive impacts on income inequality in provinces; in contrast, trade expansion and budget expenditure on medical have negative impacts on income inequality in provinces. There is a significant difference in income inequality among regions in Vietnam.

Impact of alcohol and tobacco consumption on poverty: A study in Vietnam

Le Trang Nhung — 2026-01-20

This study examines the consumption patterns of alcoholic beverages and tobacco in Vietnam, focusing on differences by residential area, household head gender, and household income. Using household-level data from the 2018 Vietnam Household Living Standards Survey (VHLSS 2018), the findings reveal that the prevalence of alcohol and tobacco use, as well as their concurrent consumption, is higher in rural areas than in urban areas. Additionally, households headed by men are more likely to consume these substances than those headed by women. Moreover, significant differences in alcohol and tobacco expenditure are observed across income groups, with higher-income households exhibiting greater spending. However, the proportion of alcohol and tobacco expenditure relative to total household spending does not differ significantly between poor and non-poor households, indicating that the financial burden of these substances is comparable across income levels. These findings provide a critical foundation for policy discussions on controlling alcohol and tobacco consumption. Potential interventions include increasing taxes, restricting advertising, and raising public awareness to mitigate the negative public health impacts of these substances.