VII International Integration and Exchange Rate Policy
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Mr. Krishna Srinivasan
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Erich Spitäller https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. M. Braulke https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Christian B. Mulder
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Mr. Hisanobu Shishido
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Mr. Kenneth M. Miranda
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Mr. John R Dodsworth
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Keon Lee https://isni.org/isni/0000000404811396 International Monetary Fund

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Abstract

Faced with the problems associated with years of central planning and the prospect of declining trade with, and aid from, the CMEA, Vietnam turned to integrating its economy with the world economy and adopted a market-oriented, export-led growth strategy at the end of the 1980s. The notable success Vietnam has achieved thus far depended critically upon extensive trade reforms accompanied by the adoption of a more open exchange system and a market-oriented exchange rate policy, which enabled Vietnam to avoid the overvaluation of its currency and thus maintain its external competitiveness. This section reviews Vietnam’s progress in opening up its economy and analyzes how policy changes have promoted this process.

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Transition to a Market Economy
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