Potential output as basis for an appropriate growth

Abstract

Vietnam achieved a record economic growth of 9.54 per cent in 1995 befor the financial crisis in South East Asia during 1997-1998 period and 8.44 per cent in 2005 before the world economic crisis in 2008.

If the first record growth stemmed from various factors, of which the economic reform played a very important role, then in the second record growth the factors that contributed to growth purely came from market oriented economy, especially the stimulus policy.

Nevertheless it is not totally true that every liberal policy would bring efficiency as the policy makers would expect.

The writer focuses his analysis on evaluating the efficiency of Vietnam’s economic growth in the 2003-2007 period, during which time the economy returned to growth potential. The contents of this article include.