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Vietnam and the East Asian Crisis

Edited by Suiwah Leung, The Australian National University, Australia
The timeliness of this book is beyond question. Since the crisis erupted in Thailand in mid-1997 and spread, with varying degrees of severity, to the rest of Asia, the export-led industrialization strategy that has driven economic growth in East and Southeast Asia over the last 50 years has come into question. Is this model still applicable to latecomers such as Vietnam?
Extent: 256 pp
Hardback Price: $141.00 Web: $126.90
Publication Date: 1999
ISBN: 978 1 84064 089 2
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  • Economics and Finance
  • Asian Economics
  • Development Economics
The timeliness of this book is beyond question. Since the crisis erupted in Thailand in mid-1997 and spread, with varying degrees of severity, to the rest of Asia, the export-led industrialization strategy that has driven economic growth in East and Southeast Asia over the last 50 years has come into question. Is this model still applicable to latecomers such as Vietnam?

The Asian financial crisis has highlighted the dangers of implementing export-oriented industrialization through government subsidies and protection. This book finds that the strategy followed by the Asian economies in the last half-decade remains a valid model for Vietnam. In order to avoid grave damage to its financial institutions, the strategy needs to be implemented in conjunction with the development of a sound financial system and a robust private sector.

Based on a detailed analysis of the causes and nature of the Asian financial crisis as well as the Vietnamese economy, this book concludes that it is unlikely that Vietnam will face a banking and currency crisis in the short term, but Vietnam could be plagued by balance of payments difficulties for some time to come unless major structural reforms are undertaken soon.

This timely book will be of great use to Asian studies scholars and those interested in the role of the financial sector in economic management and development.
‘Can Vietnam make it? Is the crisis likely to spread and make the transition still more difficult, if not impossible?. . . This is a well documented and timely case study, raising almost all relevant issues of development. The book helps us to understand what is really at stake. It has succeeded in bringing together significant contributions and discussions on the big issues and important lessons can be derived for the future of Vietnam. . . . There are on the whole enough reasons for believing that Vietnam may be on the right track. But a "strategic vision" would indeed seem to be needed.’
– Jacques De Bandt, Université de Nice – Sophia Antipolis, France
Contributors: P.-C. Athukorala, N. Che, H. Hill, Y. Huang, T. Kompas, S. Leung, R. Mallon, R.H. McLoed, R. Moreno, Ngo, H.D., G. Pasadilla, E. Remolona, J. Riedel, H. Soesastro, Tran, T.D., N. Vousden
Contents: Preface Part I: Vietnam and the Region 1. Crisis in Asia and Vietnam’s Economic Policy Response 2. Needed: A Strategic Vision for Setting Reform Priorities in Vietnam Part II: The Asian Financial Crisis and Vietnam 3. Asia’s Financial Crisis: Lessons and Implications for Vietnam 4. Current and Capital Account Liberalisation: Issues Facing Indonesia 5. Paradise Lost: The Pernicious Impact of Exchange Rate Policy on Indonesia’s Banking System 6. Dollarisation and Financial Sector Developments in Vietnam 7. Borrower Transaction Costs and Segmented Markets: A Study of the Rural Credit Market in Vietnam Part III: East Asian Export-Oriented Industrialisation and Vietnam’s Strategic Directions 8. Industrialisation in ASEAN: Some Analytical and Policy Lessons 9. Developing with Foreign Investment: What Can Vietnam Learn from Malaysia? 10. Experiences in the Region and Private Sector Incentives in Vietnam 11. Implications for Vietnam of Rural Industrialisation in China 12. Market Reform and Vietnamese Agriculture References Index