International experiences in capital inflow management and policy implications for Viet Nam

Abstract

This study examines international experiences in capital inflow management within the framework of the IMF’s Institutional View, with the aim of deriving policy implications for Vietnam. Using a qualitative approach combined with comparative case studies of Brazil and South Korea, the paper analyzes how different countries implement policy instruments to manage capital inflows. The findings indicate that Brazil mainly relies on price-based measures to curb speculative capital flows, while South Korea focuses on macroprudential tools and foreign currency risk management to reduce financial system vulnerabilities. Based on an assessment of capital inflows to Vietnam during the period 2008-2024, the study suggests that Vietnam should develop a multi-layered policy framework consistent with the IMF’s Institutional View, strengthening macroprudential measures, enhancing foreign currency risk management, and selectively applying direct capital flow management measures when necessary.