The impact of macroeconomic factors on the inflation in Vietnam

The problems of the foreign exchange market and the global financial crisis, the European public debt crisis in 2008-2011 made the economy of Vietnam facing many macroeconomic instabilities. The escalating inflation in 2008 and 2011 posed many challenges for macroeconomic management, especially controlling inflation in Vietnam. The realization of macroeconomic stability and inflation control at a reasonable level from 2012 in Vietnam was assessed to bring about remarkable results. In this article, the authors reviewed the studies of International and Vietnamese inflation, pointed out to the macroeconomic factors affecting inflation in Vietnam. At the same time, the authors used the VAR model to examine the impact of macroeconomic factors including money supply, credit, exchange rates, interest rates, real gross domestic product, international prices, inflation and give some discussions from the VAR model results.