Impacts of the european debt crisis on vietnams economy,

STATE BANK OF VIETNAM BANKING ACADEMY Foreign Language Faculty - - GRADUATION THESIS IMPACTS OF THE EUROPEAN DEBT CRISIS ON VIETNAM’S ECONOMY Lecturer Student Class Student Code : Ngo Tung Anh (M.A, MBA) : Nguyen Duc Thinh : K14-ATCD : 14A7510223 20th May 2015 i ABSTRACT Public debt is necessary to the growth of a country The government borrows in order to acquire funds for various development projects such as the construction of infrastructure or the provision of essential services including electricity, health services, education or water supply A country having public debt is not new, yet what matters is how much it owes In fact, the European debt crisis over the years has been discussed intensely in economic forums owing to the growing amount of public debt in several Eurozone country members, especially Greece, Ireland, Portugal and Cyprus Being one of EU's major partners in Southeast Asia, Vietnam has also received considerable financial aids and investment from the Eurozone over the years, which means Vietnam is also affected when it comes to the crisis that is prevailing in Europe This study presents a greater understanding regarding the European debt crisis as well as its impacts on the economy of Vietnam In the study, the researcher uses the quantitative research method and qualitative research method The study reveals the primary causes for the debt crisis in Europe from which Vietnam’s government could learn so as to better manage the public debt The research also provides some recommendations for improving the management of public debt ii ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere gratitude to my supervisor, Mr Ngo Tung Anh (MA, MBA) of the Foreign Language Faculty – Banking Academy Not only has he provided me with enormous support and guidance during the research process, but also assisted me in the draft of this research with precious comments which are of great significance to this study I also would like to show my deep appreciation to all the lecturers that have taught me since my first year of university They are such knowledgeable and helpful teachers, from whom I have learned fundamental economics concepts so as to lay the foundation of this research In the end, I want to give my heartfelt thanks to my loving parents and friends for their countless support in the process of conducting this research My family have always had faith in me and provided me with as much assistance as I need, both financially and mentally My friends have also of great help as they have offered me a number of useful suggestions Nguyen Duc Thinh iii LIST OF TABLES AND FIGURES Figures/ Tables Title Page Figure Impact of public debt on interest rates 11 Figure Greek debt compared to Eurozone average 19 Figure Competitiveness 21 Figure Trade balance Eurozone, 2011 22 Figure Figure Figure Vietnam’s goods exports to EU by factor content (million dollars) FDI inflows into ASEAN countries in 2008-2011 (million dollars) Donor countries’ registered ODA for Vietnam (billion dollars) 30 33 34 Table Public debts and EU economic situation of 2010 15 Table Vietnam's public debt, 2011 36 iv LIST OF ABBREVIATIONS Abbreviation Meaning EU European Union GDP Gross Domestic Production ECB European Central Bank VND Vietnam Dong OEDC The Organization for Economic Co-operation and Development ODA Official Development Assistance FDI Foreign Direct Investment UNCTADSTAT United Nations Conference On Trade And Development Statistics WB World Bank IMF International Monetary Fund EFSM European Financial Stabilization Mechanism EFSF European Financial Stability Facility ESM European Stability Mechanism v ABSTRACT I ACKNOWLEDGEMENTS II LIST OF TABLES AND FIGURES III LIST OF ABBREVIATIONS IV TABLE OF CONTENT V PART A INTRODUCTION 1 RATIONALES TO THE RESEARCH AIM AND SCOPE OF THE STUDY METHODOLOGY OF THE STUDY SIGNIFICANCE OF THE STUDY STRUCTURAL ORGANIZATION OF THE STUDY PART B DEVELOPMENT CHAPTER 1: THEORETICAL BACKGROUND 1.1 History of public debt 1.2 Definition of public debt 1.3 Classification of public debt 1.3.1 Internal and External Debt 1.3.2 Short-term, medium-term, and long-term debt 1.3.3 Productive and Unproductive Debt 1.3.4 Compulsory and Voluntary Debt 1.3.5 Redeemable and Irredeemable Debt 1.3.6 Funded and Unfunded Debt 10 1.4 Economic consequences of public debt 10 1.4.1 Withdrawal of private investment 10 1.4.2 Reduction in national savings 12 1.4.3 Inflation 13 1.4.4 Misled economic activities, hence the loss of social welfare 14 vi 1.4.5 Other impacts 16 1.5 Summary 16 CHAPTER 2: OVERVIEW OF THE EUROPEAN DEBT CRISIS 18 2.1 Definition and brief history of the European debt crisis 18 2.2 Primary causes for the crisis 20 2.3 Remedial actions 25 2.3.1 Immediate response 25 2.3.2 Long-term response 26 2.4 Summary 28 CHAPTER 3: ECONOMIC IMPACTS OF THE EUROPEAN DEBT CRISIS ON VIETNAM 30 3.1 Impacts on Vietnam’s exports 30 3.2 Heightened domestic market competition 32 3.3 Decreased capital flows to Vietnam 32 3.4 Weakened confidence of foreign investors in Vietnam's business environment 35 3.5 Unpredictable volatility of exchange rates 36 3.6 Summary 37 CHAPTER 4: RECOMMENDATIONS FOR VIETNAM’S ECONOMY 38 4.1 Improving institution and legislation frameworks 38 4.2 Making an equal competitive market environment for enterprises 39 4.3 Effectively implementing several solutions for controlling public debt 40 4.4 Summary 42 PART C CONCLUSION 43 RECAPITULATION AND CONCLUDING REMARKS 43 LIMITATIONS OF THE STUDY 44 RECOMMENDATIONS FOR FURTHER STUDY 44 REFERENCES APPENDIX: STATEMENT OF ORIGINIALITY AND AUTHENTICITY PART A: INTRODUCTION RATIONALES TO THE RESEARCH The European debt crisis has long been a matter of major concern of the global economy Commencing in Greece at the end of 2009, the crisis rapidly spread to several Eurozone members such as Portugal, Spain, Italy, Belgium, etc Despite a number of aid packages continuously delivered so as to pull the Eurozone from the nadir of the crisis, the consequences have still been devastating Numerous efforts have been made by EU leaders, yet they seem not to fully control the elevation of public debt in the region, painting a gloomy picture of the Eurozone’s economy It is recorded that the Gross Domestic Production (GDP) of the Eurozone decreased in the last two quarters of 2011 and the first quarter of the next year, being at 0.3 per cent and 0.2 per cent, respectively German – the top economy of the EU – despite its growth of 0.1 per cent in the first quarter of 2012, still could not compensate for the overall fall of the region The Organization for Economic Co-operation and Development (OECD) sent out the warning that the European debt crisis was a major menace to the global economy It predicted that the growth rate of the EU would not rise, but fall in 2012, which would be the most serious risk threatening the growth of the world economy Over the years, the relation between Vietnam and the European Union has gained certain achievements, especially the EU-Vietnam Framework Agreement on Comprehensive Partnership and Cooperation (PCA), which was signed in 2012, and the FTA (EU-Vietnam Free Trade Agreement) negotiations that started in 2012 are expected to be completed in 2015 Vietnam is one of EU's major partners in Southeast Asia and the EU, in its relations with Vietnam, has provided significant support for the sustainable economic development and the integration of Vietnam into the global economy and trading system As a consequence, in the context of European debt crisis, Vietnam’s economy has been inevitably influenced, causing numerous difficulties for the growth of Vietnam such as instability in exchange rates or loss of investors’ confidence Therefore, so as to present further findings about the European debt crisis as well as lessons that Vietnam’s economy could learn from the crisis, the researcher has selected the topic “Impacts of the European Debt Crisis on Vietnam’s Economy” for graduation paper The topic hopefully could paint a clearer picture of the debt crisis that has and is still prevailing in the Eurozone, and contributes to assist the government in managing public debt and budget deficit AIM AND SCOPE OF THE STUDY The principal objective of the research is to analyze the impacts of the European debt crisis on Vietnam’s economy It also offers several recommendations regarding the effective management of public debt and budget deficit This study, as a consequence, is helpful for the government and authorities in the current context of increased public debt in Vietnam The researcher concentrates on the situation of the European debt crisis and its economic impacts on Vietnam in the period from the end of 2009 to 2012 To achieve the target of the research, the researcher strives to seek answers to the following questions: RQ1 What are the consequences of the European debt crisis? RQ2 How has the European debt crisis influenced the economy of Vietnam? RQ3 What could the Vietnamese government learn from the European debt crisis? METHODOLOGY OF THE STUDY The study is conducted with secondary data Some relevant studies will be reviewed to see what other Vietnamese and foreign researchers have reported regarding the European debt crisis Some theories have been gathered from external sources such as libraries, text books and other documents on the Internet In the study, the researcher applies the quantitative research method and qualitative research method The author uses the quantitative research method through multivariate and diagram analysis Qualitative research method is used through analysis on basic criteria The analysis result largely depends on the quality or accuracy of such data and information SIGNIFICANCE OF THE STUDY In the current context of rising public debt in Vietnam, the researcher believes that this study would be of great help to the government and authorities in managing public debt To be more specific, while the debt-to-GDP ratio of Vietnam was just 11.5 per cent in 2001, the figure rose by fivefold by 2010, reading 51.7 per cent In three years from 2010 to 2013, it increased minimally to 54.2 per cent, yet was forecasted to surge up to 60.3 per cent Through this study, authorities could have a closer look at the European debt crisis and its causes so that they could learn from the faults of the EU regarding the management of public debt and budget deficit STRUCTURAL ORGANIZATION OF THE STUDY Apart from the introduction and the conclusion, the thesis is divided into four main chapters and is organized as follows: Chapter presents theoretical background of public debt; Chapter provides an overview of the European debt crisis; Chapter discusses the economic impacts of the crisis on Vietnam; and Chapter submits several recommendations for the management of public debt in Vietnam 34 (Source: UNCTADSTAT)  Official Development Assistance (ODA) According to OEDC, in 2011, ODA declined by per cent Except for 2007, the drop in ODA during 2012 was the biggest and this was also the second consecutive time that the ODA suffered decreases The primary reason is believed to be the significant impact of the European debt crisis EU is a big ODA donor for Vietnam As a consequence, fiscal consolidation in EU countries will lead to the decline of EU’s ODA for Vietnam in the future ODA from the EU fell by -7.4% in 2012 compared to 2011 (OECD, 4/2013) Recently, UK has announced to stop providing ODA for Vietnam from 2016 as Vietnam has become a middle income country However, it may partly be the results of fiscal consolidation plans of this country EU’s registered ODA for Vietnam has also dropped slightly from $1.082 billion in 2010 to $972 million in 2011 and $1.01 billion in 2012 Figure Donor countries’ registered ODA for Vietnam (billion dollars) 35 8,06 7,9 7,4 1,082 1,01 0,972 2010 2011 Total registered ODA 2012 EU's registered ODA (Source: Ministry of Planning and Investment, R.S of Vietnam) Besides, European debt crisis also affected ODA for Vietnam through its impacts on global ODA As the crisis hampered the economies of other donor countries, the total registered ODA for Vietnam has also decreased from $8.06 billion in 2010 to $7.9 billion in 2011 and $7.4 billion in 2012 3.4 Weakened confidence of foreign investors in Vietnam's business environment Vietnam is currently categorized as one of the emerging and developing economies, along with Indonesia and South Africa, ranked just behind India, China, Brazil and Russia Nevertheless, according to the WB, the Business Environment Index of Vietnam has been in decline (ranked 98th among 198 economies, falling by levels as compared to 2010) showing a decrease in the confidence of foreign investors in the business environment of Vietnam This fall is partly due to the impacts of international markets on Vietnam in the context of financial instability in the U.S and the European debt crisis Furthermore, this debt crisis has also heightened concerns among investors and credit rating agencies regarding the matter of public debt in developing countries around the world Three main alarming categories include: (i) too much debt with high public debt to GDP ratio, (ii) excessive expenditure with high deficit-to-GDP ratio, and (iii) decreased GDP growth In 2011, with the amount of public debt 36 being 54.6 per cent of GDP and overspend being 4.9 per cent of GDP, Vietnam was rated by many credit rating agencies as one of the riskiest countries for business with the level of credit-default swaps (CDS) being 263, ranked just behind Greece (321) and Iceland (466) This would be a major obstacle for attracting capital inflows into the country such as FDI and ODA Table Vietnam's public debt, 2011 Figure Billion VND Billion USD Percentage of GDP 66.8 55% 52.1 43% 292,210 14 12% 13,915 0.7 1% 128.9 106% 66.8 55% 62.1 51% Public debt according to Vietnam's 1,391,478 definition 1,085,353 State debt State guaranteed debt Local government debt Public debt according to the 2,683,878 international definition Public debt according to the Vietnam 1,391,478 definition 1,292,400 State-owned enterprise debts (Source: Vu Quang Viet, “Public and banking debts of Vietnam at a glance”, Forum Magazine, Hanoi, 25/11/2011) 3.5 Unpredictable volatility of exchange rates The public debt crisis in the Eurozone has also caused considerable volatility in exchange rates The US dollar and especially the Yen would become stronger than the Euro owing to their stability and safety Since the debt crisis got worse, the Euro has lost its value against the US dollar In May 2015, the USD/Euro exchange rate remains 1.14, much lower than the rate of 1.4 in March 2010, therefore causing certain risks in transactions for exportimport businesses as well as commercial banks' Forex activities To be more specific, the appreciation of the US dollar relative to the euro will decrease 37 Vietnam's export goods into the Eurozone owing to Vietnam's export goods being valued in USD In addition, recently the USD are also appreciating relative to the Vietnam dong owing to high inflation in Vietnam from 2008 to 2011, creating a pressure to adjust exchange rate, yet Vietnam has maintained the same rate This causes a risk of existing two interest rates and the potential risk of smuggled import owing to cheaper import This will put a greater pressure on Vietnam's national foreign exchange reserve 3.6 Summary In this chapter, so far we have discussed the impacts of the European debt crisis on Vietnam’s economy Firstly, the crisis has affected Vietnam in terms of exports, though slightly owing to the fact that major exports of Vietnam into the EU are essential products, whose consumption remained relatively stable Another impact is the heightened domestic market competition Numerous domestic companies were under pressure from the foreign firms investing in Vietnam who were definitely superior regarding the technology, the price advantage, and the brands Capital flows to Vietnam also decreased noticeably because the European debt crisis had negatively influenced various developed countries that are major ODA donors for Vietnam The debt crisis in the Eurozone, moreover, has given rise to the weakened confidence of foreign investors in Vietnam's business environment The debt crisis has heightened concerns among investors and credit rating agencies regarding the matter of public debt in developing countries Vietnam for years has seen the rise of the public debt, hence the decline of the Business Environment Index, staying at the 98th among 198 economies, falling by levels as compared to 2010 Unpredictable volatility of exchange rates is another major concern since the strengthened U.S dollar over the Euro had caused certain risks in transactions for export-import businesses as well as commercial banks' Forex activities in Vietnam 38 CHAPTER RECOMMENDATIONS FOR VIETNAM’S ECONOMY Having discussed in the previous chapter about the impacts of the European debt crisis on Vietnam’s economy, in this chapter we will see what Vietnam could learn from the debt crisis regarding the management of public debt To be more specific, the public debt-to-GDP ratio of Vietnam since 2001 has always seen an upward trend, rising from 31.6 per cent in 2001 to 60.3 per cent by the end of 2014 The figure for Vietnam ranked just behind Laos, Malaysia and Singapore among South East Asian nations The debt crisis in Eurozone has slowed down the pace of economic growth in many countries, as well as exposed numerous drawbacks in each economy, making the EU caught up in a circle of low rate of growth and high unemployment rate The lessons that Vietnam can learn from the experiences of EU could be as follows: 4.1 Improving institution and legislation frameworks Vietnam currently has to tackle numerous difficulties concerning the unsustainable economic growth such as high ICOR value, minor economic structural change, shortage of labor in some sectors requiring high-skilled workers yet excess of low-skilled ones, and heavy dependence in natural resources for economic growth, causing pollution In the Development Strategy until 2020, Vietnam would perform economic restructure, renew the growth model with the purpose of rapid yet sustainable economic growth These goals are basically similar to those of East European countries Though we not apply lessons of those countries mechanically, their achievements and limitations for more than 20 years of transformation and integration as well as efforts to overcome crises and renew growth models of Poland and Hungary would be of great assistance to Vietnam in its development strategy until 2020 It can also be learned from the Eurozone’s experiences that the freer the market becomes, the more strengthened the legislation framework must be Market 39 mechanisms and systems have been improved for hundreds of years in the EU, and the legislation frameworks have also been perfected for the past half century Vietnam is in the middle of the period for improving the socialist-oriented market economy so as to meet the requirements needed for integration of World Trade Organization, heading towards the ASEAN community and free trade agreements such as the Trans-Pacific Partnership (TPP) or bilateral free trade agreement with EU Improving the legislation and institution frameworks oriented towards internationalization of a modern market economy and integrating more efficiently into the region as well as the world in the long years to come would certainly be a major challenge Moreover, not only is the legislation framework improved but it must also be operated effectively 4.2 Making an equal competitive market environment for enterprises Competition and integration are closely related to one another, like two sides of a coin In order to integrate, we must improve the competitiveness of the economy, which would result in wide and deep integration For example, in order for countries in Eastern Europe to ensure their competitiveness in the context of integrating in with developed economies, the governments must play an orienting role in the concentration of resources for prioritized objectives such as increasing investment for science, technology, education and training, enhancement of human resources, construction of modern infrastructure including facilities for traffic, telecommunications and power generation, stabilization of macroeconomic condition, comprehensive development of economic policies to ensure that businesses could decide on long-term strategies for their own, reorganization of state-owned enterprises as well as greater attention on the development of small and medium-sized enterprises, ensuring of an equal competitive environment among businesses, etc Regarding government investment, the role of the government is to generate momentum for the market economy development, constructing institutions, 40 human resources and infrastructure Nevertheless, as regards the construction of infrastructure, the common trend is to reduce the participation of state-own enterprises in natural monopolies such as traffic and transportation, post and telecommunications, energy, etc and direct government investment towards the development of science, technology, and education so as to exert leverage in the movement of economic structures in a sustainable direction From the experiences observed from the international environment as well as the East European countries, it could be seen that it is vital to establish the independence of central bank in the operation of monetary policy The regulation of exchange rates, interest rates and inflation is an important macroeconomic tool that should be in a stable and predictable state Simultaneously, the central bank needs to strengthen measures and sanctions so as to control and advise about risks of the banking system, heading towards the international standards in the process of regional and global integration Moreover, in addition to improving the effectiveness of budget collection and expenditure and lessening burdens on businesses, the fiscal policy as well as government budget needs to be clear and predictable in order to provide an advantageous environment for enterprises Concerning the public debt policy, it is important to state explicitly the agency determining the policy, basic content of the policy, and the scientific foundations for the development of the policy Additional regulations should be introduced so as to define debt strategy as recommended by WB and IMF’s experts, appropriately in the current context of Vietnam’s economy Meanwhile, close management and clarification of commercial banks’ debts is needed, not only to clear credit channels but also to avoid risks of increasing public debts, which could be seen currently in the Eurozone 4.3 Effectively implementing several solutions for controlling public debt Since Vietnam is a developing country, the investment rate usually remains high, practically at 40 per cent of GDP while only 27 to 30 per cent of GDP comes from 41 domestic savings; another 10 per cent originates from external sources (such as FDI, ODA, etc.) This is an exceptionally high rate as compared to other countries in and outside the region on average The growth model with heavy dependence on foreign investment capitals is of great vulnerability when it comes to global economic stagnation As a consequence, regarding the economic growth model of Vietnam, a reduction of foreign capitals in the capital structure is necessary to lessen the dependence on external sources as well as foster development based on effective investment The primary cause for the debt crises among Latin American countries as well as the members of the Eurozone is budget deficit Therefore, it is essential that Vietnam should tighten the government budget, implement sensible government spending, and be cautious in large-scale investment projects that cost substantial volumes of funds from foreign debts This needs to be done since Vietnam currently has an excessive number of large-scale projects, such as the extension of urban areas, construction of nuclear power plants and the North-South Express Railway, etc So as to effectively manage budget deficit and public debt, each country should first perform disclosure and clarification regarding the policies Moreover, the government needs to establish a clear legal framework and delegate the responsibility to the Ministry of Finance This department plays the role of selecting necessary debt instruments and forms, planning rational strategies and routes for borrowing, researching strategies for sustainable management of public debt through the debt limit ratio and data on risks posed by public debt Simultaneously, it is vital that statistic data be updated in a clear and precise manner Meanwhile, the terms accompanying the debts also need to be clarified and fully updated IMF suggested that the task of auditing borrowing activities of the government be assigned to an independent firm so as to enhance the objectivity and explicitness of such information 42 Every activity of state administrative units, moreover, should be made explicit In particular, clarification is needed regarding how revenues from these units could contribute to the government Their annual financial statements, furthermore, should disclose the revenue and the amount that contributes to the state budget Such information also needs to be recorded in annual reports of the government budget Similarly, public expenditure for the benefits of government institutions should be made explicit in reports of the government budget as well as the annual financial statements 4.4 Summary In this chapter, a number of recommendations regarding the management of public debt have been suggested for the government in Vietnam, one of which is to improve institution and legislation frameworks It can be learned from the European debt crisis that the freer the market becomes, the more strengthened the legislation framework must be, therefore, the government should strive to improve the legislation and institution frameworks oriented towards internationalization and integration into the region as well as the world economy in the future Another recommendation is for the authorities to establish an equal competitive market environment for enterprises Competition goes with integration, hence we must improve the competitiveness of the economy so as for it to integrate widely and deeply into the world The government in this case must play an integral part in the concentration of resources for prioritized objectives as well as the generation of momentum for the market economy development In the end, the chapter presents several solutions for controlling public debts that the government should apply effectively such as reducing foreign capitals in the capital structure or tightening the government budget and implementing sensible government spending 43 PART C: CONCLUSION RECAPITULATION AND CONCLUDING REMARKS It could be seen from the impacts of the European debt crisis on the global economy that public debt is a major concern not only to the world but also to every single country, whether under-developed, developing, or developed As a consequence, governments and authorities must have an extensive understanding of this crisis as well as its economic complications This study is aimed at analyzing the impacts of the European debt crisis on Vietnam’s economy as well as offering several recommendations regarding the effective management of public debt and budget deficit The first chapter presents the theoretical background of the study, in which we have seen two major public debt crises, the first one among Latin American countries from the 1970s to the1980s and the second one being the European debt crisis beginning at the end of 2009 In this chapter, we have also gone through different concepts and forms of public debt No matter what forms of public debt are obtained, they generally have negative impacts on the economy The second chapter provides an overview of the European debt crisis, starting with the concepts of public debt crisis as well as the European debt crisis Major causes giving rise to the European debt crisis are also mentioned, which are the one-sizefits-all monetary policy, the economic divergence and trade imbalances among the Eurozone and the EU’s structural problem The chapter, moreover, has given information on the responses of the Eurozone to the crisis, both the immediate and long-term ones The third chapter presents the primary content of the research that is the economic impacts of the European debt crisis on Vietnam The crisis has affected Vietnam’s economy in several aspects, including exports, the domestic market competition, capital flows to the country, the confidence of foreign investors, and the volatility of exchange rates 44 The last chapter offer several recommendations for the Vietnamese government concerning the management of the public debt Firstly, it is suggested that the institution and legislation frameworks in Vietnam be improved An equal competitive market environment for enterprises should also be established Moreover, several solutions are proposed in this chapter so as to effectively control public debt, such as reducing foreign capitals in the capital structure, tightening the government budget and implementing sensible government spending, etc LIMITATIONS OF THE STUDY Striving to generate important findings concerning the European debt crisis as well as its impacts on Vietnam’s economy, the researcher, nevertheless, must acknowledge that there are several limitations of this study A number of flaws need to be noted regarding the present study The main limitations are expressed as follows: the first limitation concerns the scope of the study, or to be more specific, the period of time that the study covers This research primarily concerns with the economic impacts of the European debt crisis on Vietnam in the period from 2009 to 2012 Nevertheless, from 2012 onwards, as there have been a number of changes in the situation of the debt crisis in Europe, Vietnam has also been affected However, owing to the shortage of statistical data in the recent years, the author is not able to keep track with the influences of the European debt crisis on Vietnam in the period from 2012 Another limitation of this study is that the researcher has presented several aspects which are under the influence of the European debt crisis, yet there are other minor impacts which are not mentioned, such as the surge of gold price RECOMMENDATIONS FOR FURTHER STUDY As mentioned earlier, the study encountered a number of limitations, which need to be considered Future research would have been more convincing if the researchers have related more recent data related to the impacts of the European debt crisis on Vietnam’s economy from 2012 onwards, which would help readers 45 have a clearer picture of how the debt crisis in the Eurozone lately has affected the Vietnamese economy Furthermore, more details regarding the impacts of the debt crisis on Vietnam, both major and minor ones, are highly recommended to be included in future research REFERENCES Lê Thị Minh Ngọc (2011) NỢ CÔNG - SỰ TÁC ĐỘNG ĐẾN TĂNG TRƯỞNG KINH TẾ VÀ GÁNH NẶNG CỦA THẾ HỆ TƯƠNG LAI Tạp chí Khoa học và Đào tạo Ngân hàng Pham, A T., Dinh, M T., Nguyen, D T., & To, T T (2013) PUBLIC DEBT AND SUSTAINABILITY IN VIETNAM: THE PAST, PRESENT AND THE FUTURE Knowledge Publishing House Mai, T T (2012) The Impacts of European Debt Crisis on the Prospects of Some Economic Areas in Vietnam Paper presented at ASEAN Integration under the Global Political and Economic Trends: Major Issues, Impacts and Responses Taipei Nautet, M and Van Meensel, L (2011) Economic impact of the public debt Economic Review Ban Nghiên cứu Phát triển (2012) ẢNH HƯỞNG NỢ CÔNG CHÂU ÂU ĐẾN KINH TẾ VIỆT NAM NĂM 2012 Bản tin nhà đầu tư, 10-11 Lê Viết Tùng (2013) Khủng hoảng nợ công châu Âu học cho Việt Nam Tạp chí Cộng sản Nelson, R M., Belkin , P., Mix, D E., & Weiss, M A (2012) The Eurozone Crisis: Overview and Issues for Congress Congressional Research Service Responding to the debt crisis (2014, April 09) Retrieved from European Commission: http://ec.europa.eu/economy_finance/explained/the_financial_and_econom ic_crisis/responding_to_the_debt_crisis/index_en.htm European debt crisis (n.d.) Retrieved from Wikipedia: http://en.wikipedia.org/wiki/European_debt_crisis 10 Chand, S (n.d.) Public Debt: Major Forms of Public Debt – Explained! Retrieved from YourArticleLibrary: http://www.yourarticlelibrary.com/debts/public-debt-6-major-forms-ofpublic-debt-explained/26311/ 11 European Debt Crisis Explained (n.d.) Retrieved from PROFIT CONFIDENTIAL: http://www.profitconfidential.com/european-debtcrisis/ 12 Harari, D (2014, February 21) Causes of the eurozone crisis: a summary House of Commons Library APPENDIX BANKING ACADEMY FACULTY OF FOREIGN LANGUAGE Graduation Paper Statement of Originality and Authenticity This thesis is an original and authentic piece of work of myself I have fully acknowledged and referenced all material from secondary sources It has not, in whole or part, been presented elsewhere for assessment I have read the Examination Regulations and I am aware of the potential consequences of any breach of them Signature: Name: Date: