Capital account liberalisation and financial stability in the context of integration

Abstract

Capital account liberalisation is an inevitable process when Vietnam has integrated into the global economy more deeply and widely. However, how to liberalise is an urgent problem to be solved in both the short term and the long term because this process can result in negative impacts on the financial stability. From the current situation of capital account control in Vietnam, based on the studies of capital account liberalisation for financial stability, the authors have evaluated the necessary conditions for capital account liberalisation in order not to affect negatively the financial sector and then recommend relevant policy implications in the next phase of integration.