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The research aims to explore how Vietnam’s economy reacts to significant external shocks, such as U.S. interest rates and oil prices.

The Effect of Foreign Shocks on Vietnam’s Economy

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The research aims to explore how Vietnam’s economy reacts to significant external shocks, such as U.S. interest rates and oil prices.
Employed a structural vector autoregression (SVAR) model to identify external shocks
Utilized local projections (LP) method to estimate responses of the economy to these shocks
Responses to external shocks vary significantly based on their origins.
Inflation-driven tightening led to distinct impacts on economic activity.
Commodity-price and global uncertainty shocks showed different effects on macroeconomic stability.

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Investigates macroeconomic effects of foreign shocks on Vietnam, highlighting implications for policy design.

Pham et al. (2026) studied this question.

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