INFLATION DEVELOPMENTS
Vietnam experienced a bout of hyperinflation in the second half of the 1980s and early
1990s, but a major stabilization effort brought inflation under control. Tight monetary and
fiscal policy played a key role in bringing inflation down from annual rates exceeding
300 percent in 1986-88 to below 20 percent in 1992 and to close to 10 percent in 1995
(Camen, 2006). Stabilization efforts led to a strong growth performance in the early 1990s.