Vai trò của ngân hàng trung ương hoa kỳ và nhật bản trong phát triển kinh tế nghiên cứu so sánh và bài học cho việt nam tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Dinh Viet Hung THE ROLE OF THE CENTRAL BANK OF THE UNITED STATES AND JAPAN IN ECONOMIC DEVELOPMENT: COMPARATIVE RESEARCH AND LESSONS FOR VIETNAM Major: International economics Code : 9.31.01.06 ABSTRACT OF DOCTORAL THESIS IN INTERNATIONAL ECONOMICS HANOI – 2020 The Thesis is completed at: Graduate Academy of Social Sciences – Vietnam Academy of Social Sciences Supervisors: Assoc Prof Dr Nguyen Xuan Dung Assoc Prof Dr Tran Thi Lan Huong Reviewer 1: Prof Dr Dang Thi Loan Reviewer 2: Assoc Prof Dr Nguyen Van Dan Reviewer 3: Assoc Prof Dr Dao Ngoc Tien The thesis will be defended at Thesis Assessment Council at Graduate Academy of Social Sciences At … .…, date … month … year 2020 The thesis can be found at: National Library of Vietnam Library of Graduate Academy of Social Sciences INTRODUCTION Urgency of topic The central bank plays a major role in organizing and operating the economy, and promoting economic growth of a country International economic integration brings opportunities to the economy in general and the central bank in particular, such as creating chances for capacity building, effective management and implementation of monetary policies, and reform of mechanisms of monetary, interest rate, and exchange rate control with a marketbased approach The United States and Japan are the two major world economic powers and the leading countries in the reform of the banking system in general and the central bank in particular, by which the decisions made by the central bank can be precise for economic development or can be flawed and lead to a significant impact on the economy Researching on the central banks of these two countries for both successes and failures may help Vietnam draw interesting lessons A study comparing the role of central banks in the United States and Japan in economic development to draw lessons for Vietnam in global integration is greatly valuable and necessary, supplementing the past studies on the same topic and suggesting ways to improve the role of the State Bank of Vietnam Based on these considerations, I have chosen the topic: "The role of the central banks of the United States and Japan in economic development: A comparative study and lessons for Vietnam" as the study topic Study purpose and mission 2.1 Study purpose: to carry out a comparative study on the role of the central banks of the United States and Japan in economic development and draw lessons for Vietnam 2.2 Study mission: (i) overview of study background related to central banks and the role of the central bank in economic development; (ii) systematization of some theoretical issues about the role of the central bank in economic development; (iii) analysis and determination of the role of each central bank, similarities and differences between the central banks of the United States and Japan, successes and limitations of the central banks for economic development; (iv) study and drawing of lessons that can be learned by the State Bank of Vietnam in economic development; (v) proposal of solutions to perfect the operation of the State Bank of Vietnam in the new development stage Object and scope of study 3.1 Object of study: Theoretical and practical issues about the role of the Central Bank in national economic development 3.2 Scope of study: Regarding content: Studying the role of the central banks of the United States and Japan in the economic development of each country and drawing lessons for Vietnam; Regarding setting: Studying the role of the central banks of the United States and Japan in the economic development of each country; Regarding time period: Studying on the role of the central banks of the United States and Japan in the economic development of each country from 1980 to 2018 For Vietnam, the study was made on the role of the central bank from the Reform in 1986 to 2018 and proposal was made on learning from the lessons to 2025, with a vision to 2030 Study methodology and method 4.1 Study approach: The thesis is made on the basis of a historical and systematic approach More specifically the study was carried out from the perspective of international economics on the basis of observing the application of tools and policies by the Central Bank of the United States and Japan in regulating the economies and evaluating the successes and limitations in economic regulation of these two countries and drawing lessons for the State Bank of Vietnam 4.2 Study methodology: dialectical materialism and historical materialism The thesis also employs a combination of different research methods such as the statistical method and compilation method to systematize all issues related to the topic as well as all published views, theoretical points, theoretical basis, scientific works, documents, and reported data 4.3 Specific study method: The thesis employs the following methods: Historical method; Logical method; Method of analysis and assessment; Comparative method; Interpretation and inductive method New scientific contributions of the thesis The thesis systematizes a number of basic theoretical and practical issues related to the central bank with the target approach to highlight the characteristics of and tasks assumed by the central bank; The thesis analyzes and determines the role of each Central Bank and similarities and differences between the Central Banks of the United States and Japan, and points out the successes and limitations of economic development in each country Based on these, the thesis draws lessons to perfect the role of the State Bank of Vietnam Theoretical and practical significance of the thesis 6.1 Theoretical significance: The thesis contributes to supplementing and developing theoretical perspectives on the role of the central bank in economic development 6.2 Practical significance: (i) The thesis supplements a number of scientific bases in orienting and building development policies for the State Bank of Vietnam; (ii) Based on a comparative study of the Central Banks of the United States and Japan, the thesis draws lessons and suggests solutions to overcome outstanding problems in the way the State Bank of Vietnam organizes and applies regulatory tools; (iii) the thesis proposes a number of recommendations to the State in supporting the State Bank of Vietnam to fully demonstrate its role in economic development Study structure In addition to the Introduction, Conclusion, Appendices, and References, the structure of the thesis includes chapters Chapter 1: OVERVIEW OF RESEARCH WORKS RELATED TO THE TOPIC OF THE THESIS 1.1 Overview of current research status 1.1.1 Research on the Central Bank 1.1.2 Research on the role of the central bank in economic development 1.1.3 Research on the independence of the central bank 1.1.4 Research on the central banks of the United States and Japan 1.1.5 Research on the State Bank of Vietnam 1.2 Assessment of status of research related to the thesis 1.2.1 About research results used by the thesis In terms of theory: Previous research works have provided the author with a comprehensive and multidimensional understanding of the concept of central bank and the role of the central bank in economic development Overseas and Vietnamese researchers have determined a number of general theories about the role of the central bank in economic development and specified different perceptions about the organizational models, structures, functions, and degrees of independence of different central banks in the world, which all affect the role of the central bank in economic development The research works (mainly overseas ones) have determined the functions of the central bank in the new development stage and analyzed and compared the roles of central banks in some countries Some research works have mentioned the experiences learned from countries such as Japan, the United States, etc related to the organizational structure and economic regulation method employed by the central bank in each country, thereby suggesting solutions for the planning of development mechanisms and policies by the State Bank of Vietnam Such works directly relate to the scope and object of study of the thesis and therefore their results are used, supplemented, and developed by the author in this thesis In terms of practice: Previous research works have studied the status of the organizational models of a number of central banks in the world; compared the structures, functions, roles of, and economic regulation methods applied by the central banks of some countries in economic development; the effects of the regulatory tools and policies used by central banks; and especially the degree of independence of the central bank, thereby specifying the role of the central bank in economic development 1.1.2 Studied issues In terms of theory: (i) The concept of the central bank and economic development has been analyzed, but still requires research in a more complete and comprehensive way, especially in association with international economic integration (ii) Functions, duties, independence, responsibility, obligation, characteristics, and role of the central bank in the process of economic development of the world in general and Vietnam in particular; the factors affecting economic development; and the relationship between the central bank's role and the economy have not been analyzed in depth, more specially the impact from the central bank's use of the tools of economic regulation has not been determined Therefore, this is the main goal of the thesis In terms of practice (i) Most research studies have mentioned the role of the central bank, but at a preliminary level, especially domestic studies As for foreign research studies, central banks are studied on a country-to-country basis without any study comparing carefully, specifically, systematically, and comprehensively the roles in economic development of the central banks of the United States and Japan Therefore, the topic of the thesis features many new aspects and is highly contemporary, especially in the period of international integration in Vietnam; (ii) The results of previous research studies confirm that the central bank plays an important role in economic development in countries and greatly contributes to economic growth, price stability, and the stability of the financial market However, no clear interpretations are given in a way that form a system of scientific opinions and specific, feasible proposals and solutions (iii) The results of research studies in Vietnam have provided a number of solutions and recommendations to reform the operation of the State Bank of Vietnam However, these studies have not yet provided thorough, comprehensive, and highly feasible solutions and recommendations for the State Bank of Vietnam with regard to the current economic integration conditions Chapter 2: THEORY OF CENTRAL BANKING AND THE ROLE OF THE CENTRAL BANK IN ECONOMIC DEVELOPMENT 2.1 Overview of the central bank 2.1.1 Concept and nature of the central bank 2.1.1.1 Concept There are many definitions of a central bank, most of them specify that the central bank is a public, state-management institution for monetary, credit, and banking activities which can be independent or semi-independent of the Government, that has a monopoly on the printing and issuance of money notes, and that is the bank of banks charged with the task of regulating money supply and service supply for the Government and regulating the flows of money in circulation within the country for the purpose of stabilizing the value of money 2.1.1.2 Nature of the central bank In the author's opinion, the nature of the central bank is as follows: A state apparatus conducting the state management in the fields of monetary, credit, and banking activities; The bank with a monopoly on issuance of money for the State, regulating money supply to the economy and providing services to the Government; The highest body in the monetary and banking system and the final lender for commercial banks and credit institutions; The integrated economic and financial management agency, regulating the circulation of money flows to stabilize the value of the nation's currency 2.1.2 Functions and duties of the central bank 2.1.3 Responsibilities and obligations of the central bank 2.1.4 The independence of the central bank 2.1.5 Organizational model of the central bank 2.2 The role of the central bank in economic development 2.2.1 The concept of the role of the central bank in economic development The concept of the central bank's role in economic development is understood as follows: The role of the Central Bank in economic development is that the Central Bank performs its functions and duties with the use of regulatory tools to advance the economy in all aspects, a process that influences both qualitative and quantitative changes in the economic and social perfection process under certain conditions and circumstances 2.2.2 Criteria for evaluating the role of the central bank in economic development 2.1.1.3 Contributing to economic growth 2.1.1.4 Stabilizing and developing the financial market 2.1.1.5 For budget deficits 2.1.1.6 For investment 2.1.1.7 For import and export 12 the shapes of the interest rate curve and GDP growth curve show a variation; when growth decreases at a bewildering rate, even negative, interest rate drops, showing a clear intervention from the FED to save the economy with the use of the interest rate tool 3.1.2.2 To price stability and inflation control In period 1979 - 1983, the US economy showed signs of a serious recession, with rising inflation rate and unemployment rate Inflation rate peaked in 1980 at 13.55%, but dropped to 10.33% in 1981 and 6.13% in 1982 Although there were signs of decrease, inflation rate was still considered high, along with an unemployment rate of 9.7% Under such conditions, the FED conducted a monetary policy aimed at controlling inflation and reducing unemployment The FED pumped more cash into the economy and reduced lending interest rate from 18.87% in 1981 to 14.86% in 1982 and further to 10.79% in 1983 By this time, the economy started to recover, but with an unstable growth rate, rising from -0.26% in 1980 to 2.54% in 1981 before dropping to -1.80% in 1982 and again reaching a positive level of 4.58% in 1983 From 1984-1987, the FED loosened the supply of cash to boost the economy, pumping money at a rate of 10% per year GDP growth in 1984 reached as high as 7.24% and inflation rate and unemployment rate showed a downward trend Since 1988, the FED's interest rate has been an important tool in US monetary policy 13 20 15 Inflation rate (%GDP) 10 Effective interest rate (%) -5 Lending interest rate (%) 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Chart 3.2: US inflation rate, effective interest rate, and lending rate between 1980 and 2018 Source: http://data.wourldbank.org During 2000-2007, inflation rate maintained at 2% - 3%, unemployment rate ranged from 4% - 5%, and GDP growth rate decreased from 4.13% in 2000 to 1.88% in 2007 The strength of the US dollar and the US economy declined By the end of 2007 the value of the US dollar reached the lowest level in 35 years The FED agreed to the measure to increase the attractiveness (in particular, the interest rate) of US treasury bonds to attract central banks of countries with a surplus of US dollars; however, the measure was ineffective and further lower US economic indicators In period 2008 - 2010, a financial crisis broke out, causing tightening liquidity and credit conditions on Wall Street The FED took the usual measure in similar cases which was to lower shortterm interest rate with the aim of increasing money supply in the market to stimulate consumption and investment and promote other economic activities 14 In recent years, US inflation rate decreased to less than 3%; more specifically inflation rate stayed at 2.13% in 2017 and 2.44% in 2018 (which was lower than the market's expectation of 2.88%) It was an acceptable low interest rate amid falling fuel, gasoline, and housing costs Many other measures were taken by the FED to control inflation in recent years 3.1.2.3 To financial market stabilization and development By using its tools in a flexible manner (control of monetary supply, conduct of monetary policy, change of discount factor and discount rate, change of reserve requirement rate, and implementing open market operations), the FED has confirmed its important role in stabilizing the financial market 3.1.2.4 To budget deficits US budget deficit rose from 585 USD billion (or 3.2% of GDP) in 2016 to 666 billion USD (3.5% of GDP) in fiscal year 2017 Spending increased 3% to an all-time high record of 3,981 USD billion, while revenue grew less than percent to an all-time high record of 3,315 USD trillion US government budget accounted for 2.13% of GDP in average between 1948 and 2017, reaching a record high of 4.50% of GDP in 1948 and a record low of -9.80% of GDP in 2009 Financially, the FED has an independent operating budget and revenue earned from its holdings The FED gains revenues from a variety of sources including large investments in bonds and other assets, which are partly used to cover for the system's operations and partly sent to the Department of Treasury to cover for the federal government's bills Payments from the FED have somewhat reduced federal deficit 15 3.1.2.5 To investment Gross investment growth (%) Effective interest rate (%) 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 30,00 25,00 20,00 15,00 10,00 5,00 (5,00) (10,00) (15,00) (20,00) Lending interest rate (%) Chart 3.5: Relationship between US gross domestic investment and interest rates during 1980 - 2018 Source: http://data.wourldbank.org Chart 3.5 clearly demonstrates the FED's intervention in interest rates which affects the total investment In 1982 when gross investment was -10.18%, the FED had effective interest rate decreased to 6.62% from 8.18% in 1982 Right after FED's interest rate adjustment, gross domestic investment increased markedly, reaching 1,013,272 USD million in 1984 By the end of 1990 and early 1991 when gross investment again tended to decrease, the FED lowered interest rate from 6.04% (1990) to 4.92% (1991) and lending rate from 10.01% (1990) to 8.46% (1991) Following the adjustment, gross domestic investment increased and gradually stabilized In 2017, gross domestic investment was 4,025,485 USD million, equivalent to a growth rate of 3.87%; in 2018 it was 4,315,457 USD million USD with a growth rate of 4.55% This shows the return of investors' confidence and also affirms the important role of the FED to investment 16 3.1.2.6 To import and export The United States is always in a state of trade deficit (value of exports lower than value of imports), which is not uncommon due to the fact that the value of the US dollar is much higher than the value of the majority of other currencies, making it challenging for other countries to import goods from the United States (because of the high cost) while the United States easily import goods from abroad where production cost is much cheaper due to exchange rate differences Facing such a situation, the FED cannot reduce the value of the US dollar too low with monetary policy, but can only regulate the currency at an appropriate level to gradually reduce trade deficit while protecting it 3.2 Bank of Japan and economic development 3.2.1 Overview of Bank of Japan 3.2.1.1 History 3.2.1.2 System structure 3.2.1.3 Legal position 3.2.1.4 Functions and duties of Bank of Japan 3.2.2 The role of Bank of Japan in economic development 3.2.2.1 To economic growth Bank of Japan (BOJ) plays an important role in supporting the promotion of major reform programs in Japan, including economic structure reform, budget deficit reduction, financial reform, and restructuring of government organization In January 2001, Japan conducted administrative reform The BOJ made adjustments in its monetary policy to deal with bad debts, modernized and rearranged the banking system according to international standards, and assessed the impact of its monetary policy on stimulating investment and allocating financial resources that provided for the recovery and growth of the economy 17 10 GDP growth rate (%) Effective interest rate (%) -5 -10 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Deposit interest rate (%) Lending interest rate (%) Chart 3.6: Japan's GDP growth rate, effective interest rate, deposit interest rate, and lending interest rate between 1980 and 2018 Source: www.data.worldbank.org The Japanese economy prospered in recent years owing to timely and rational government policies and strong support from BOJ 3.2.2.2 To price stability and inflation control Japan is the country with the longest run of deflation in economic history Japan has been facing an economic crisis due to prolonged deflation Since the property bubble in Japan exploded in the early 1990s, deflationary pressure has "squeezed" the country's economy Deflation caused by monetary tightening, which led to debts and the collapse of commercial banks in the 1990s, is called debt-deflation by economists The Bank of Japan Act states that the Bank's monetary policy should be "aimed at achieving price stability, thereby contributing to the sound development of the national economy The continued application of the loose monetary policy could give way to moderately positive inflation in Japan 3.2.2.3 To financial market stability and development For the financial market stability and development, the following actions have been taken by BOJ: prompt provision of liquidity to maintain an orderly financial market; International 18 cooperation; Monetary policy measures; and Measures to ensure the financial system stability 3.2.2.4 To budget deficits Despite being considered to be the highest among developed countries, Japan’s public debt has been still at a safe level All Japanese Government debts are effectively guaranteed by BOJ which may intervene and acquire the entire number of bonds by printing more notes in case of a bond sell-off in the government bond market BOJ can monetize debts in an unlimited manner To reduce the budget deficit and cope with the crisis, Japan also maintains a low-interest rate, leading to much lower debts than those of other countries, partially thanks to its monetary policies 3.2.2.5 To investment In the period 1980 - 1990, Japan was seen as a model for global economic development BOJ decreased the lending interest rate, specifically from 8.35% in 1980 gradually down to 5.03% in 1988 Also, the deposit interest was adjusted from 5.5% in 1980 down to 1.76% in 1988, at which point the total domestic investment was up to USD 1,015,142 million, as a result of the low deposit interest rate, attracting more people’s investment than bank deposits as well as giving manufacturers and investors easier access to capital Domestic investment growth rate (%) Effective interest rate (%) 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 20.00 15.00 10.00 5.00 (5.00) (10.00) (15.00) (20.00) Deposit interest rate (%) Lending interest rate (%) Chart 3.9: Relationship between gross domestic investment and interest rate of Japan between 1980 and 2018 Source: http://data.wourldbank.org 19 In later periods, when the asset price bubble collapsed, Japanese investment was also significantly affected It was an inappropriate monetary policy conducted by BOJ during this period that led to a long decade of losses Bad debt situation became terrible during this period, which greatly affected BOJ’s investment BOJ was unable to reduce interest rates to regulate economic stimulus, causing economic stagnation 3.2.2.6 To import and export The period of 1980 to 1990 observed the asset price bubble in Japan Japan’s import and export shifted from a trade deficit to a trade surplus Specifically, the deficit was USD 10,762 million in 1980 while in 1981 the trade surplus amounted to USD 7,475 million d gradually increased in the following years, and reached its peak in 1986 at USD 76,372 million, except for 1982 when it was the lowest at USD 6,219 This period saw the higher price of Japanese Yen than US dollar, high GDP growth, high inflation rate, but low unemployment rate, high asset price and strong consumption The appreciation of Japanese Yen after the Plaza Accord (1985) caused difficulties for Japanese exporters and threatened economic growth in this country BOJ had to loosen its monetary policy (lowering interest rates) to deal with that, bringing about excessively high liquidity After the global financial crisis (2008), the Japanese economy was as influenced as other nations Despite a sharp increase in the import-export, the trade surplus was shifted to a trade deficit in 2012, 2013, 2014 and 2015, being the highest in 2013 and 2014, at USD 119,444 million and USD 119,570 million, respectively Right after that, BOJ adjusted the negative interest rate, particularly in 20 2014 the real interest rate was -0.52% and in 2015 it was -0.98% This brought the trade balance surplus again in 2016, 2017 and 2018, at which time BOJ positively adjusted the effective interest rate to 0.78% (2016) and 1.22% (2017) 3.3 Comparison of Central Banks of the US and Japan 3.3.1 Institutional framework and institutional characteristics of the two central banks 3.3.2 Monetary policy objectives 3.3.3 Extent of independence 3.3.4 Accountability, transparency and communication 3.3.5 Roles in economic development 3.4 Lessons learned for perfecting the role of the State Bank of Vietnam in economic development 3.4.1 Lessons on how to organize and work 3.4.2 Lessons on how to regulate the economy through monetary policy tools 3.4.3 Lessons when a financial crisis occurs Chapter 4: CERTAIN SOLUTIONS TO PERFECT THE ROLE OF THE STATE BANK OF VIETNAM IN ECONOMIC DEVELOPMENT 4.1 Overview of the State Bank of Vietnam 4.1.1 History 4.1.2 Organizational structure 4.1.3 Legal position 4.1.4 Functions and duties 4.1.5 State Bank of Vietnam in the current context 4.2 State Bank of Vietnam in economic development 4.2.1 Roles of the State Bank of Vietnam in economic development 21 4.2.1.1 For economic growth 4.2.1.2 For price stability and inflation control 4.2.1.3 For financial market stability and development 4.2.1.4 For budget deficits 4.2.1.4 For investment 4.2.1.5 For import and export 4.2.2 Evaluate the role of the State Bank in recent years 4.2.2 Evaluation of roles of the State Bank of Vietnam in recent years 4.2.2.1 Achievements Firstly, the State Bank of Vietnam (SBV) has closely followed the policies of the Vietnamese Communist Party and the direction and administration of the Government; adopted proactive and flexible monetary policy solutions, suited to conditions in each period, contributing to inflation control and macroeconomic stability, and promoting socio-economic development Secondly, the legal framework for money and banking operations has been continuously improved SBV’s functions, duties, and organizational structure have been gradually added and completed and the competencies and qualifications of the bank staff have been increasingly enhanced Thirdly, the system of credit institutions has developed; Capital mobilization and lending have been increased rapidly whilst banking products and services have gradually diversified, actively contributing to promoting economic restructuring, developing the economy towards industrialization and modernization Fourthly, the banking infrastructure and technology have been invested and modernized There is a strong development of non-cash payments, especially bank cards, e-wallet systems and online transactions 22 Fifthly, international cooperation in the banking sector has achieved numerous significant results, attracting foreign investment, promoting access to modern banking technology and services and international banking standards 4.2.2.2 Limitations and causes a, Limitations: (i)Unclear operational objectives; (ii) Limitations on organizational structure; (iii) Staff short-comings; (iv) Limitations on management and administration of the organization; (v) Limitations on the performance of professional operations and functions; b, Causes: (i) Legal corridor; (ii) Conflict of interests, thinking and perspectives; (iii) Human resource work; (iv) Limitations on the performance of activities and operations 4.3 Certain solutions to perfect the roles of the State Bank of Vietnam based on lessons learned from the US Federal Reserve System and the Central Bank of Japan in economic development 4.3.1 Objectives and directions to perfect the role of the State Bank of Vietnam in the context of international economic integration 4.3.1.1 Objectives 4.3.1.2 Directions 4.3.2 Certain solutions to perfect the roles of the State Bank of Vietnam in economic development 4.3.2.1 Completing the legal environment 4.3.2.2 Completing the organizational apparatus 4.3.2.3 Improving human resource quality 4.3.2.4 Reforming the management and administration of the organization 4.3.2.5 Improving the quality and effectively fulfilling functions and duties 23 CONCLUSIONS Based on the research on “The role of the central banks of the United States and Japan in economic development: A comparative study and lessons for Vietnam”, the thesis has solved the following basic contents: The thesis gave a literature review of domestic and foreign studies on central banks and their roles in economic development, thereby exploring, utilizing and inheriting research results while pointing out research gaps in both theory and practice The thesis systematized certain basic theories about the concept, functions, duties, responsibilities and obligations of a nation’s central bank, the relationship between the roles of the central banks and economic development, as the basis for the study and assessment of the roles of the Central Banks of the United States and Japan in each country’s economic development The thesis got an insight into the institutional structures and monetary policies of the two central banks of the United States and Japan A comparison between FED and BOJ was done Despite many different duties and legal status, there are similarities between these two institutions in terms of institutional structures and monetary frameworks and the use of tools Central banks worldwide have also developed in an independent and transparent manner and accepted the existence of monetary policy committees in their development This has contributed to reducing the differences between the two institutions - a trend that can also be observed among other central banks However, there are several practical differences in how monetary policy committees work and some differences in communication strategies although in general, the financial market response appears to be high for both FED and BOJ (in terms of monetary policy trends and views on the economic outlook) It is these bank’s different status and duties that reflect their 24 different historical conditions, different national characteristics, and different establishment time Yet, changes to central banks’ operations (especially trends toward greater independence and transparency) and changes to the overall economic and financial environment over the past two decades have significantly reduced the differences between monetary authorities In particular, in terms of monetary policy strategies, FED has many indices on price stability and employment while BOJ shows many indices and focuses on money and financial assets Regarding the goals, FED set out many goals while BOJ focuses more on developing inflation From the comparative study, analysis and assessment of the current roles of the Central Banks of the United States and Japan, the thesis provided lessons from both success and failure in the operation of the Central Banks of Japan and the United States such as how to organize and operate, how to regulate the economy through monetary policy tools and lessons when a financial crisis occurs, especially in regulating the macroeconomy that Vietnam can learn from to perfect the roles of the State Bank of Vietnam in economic development The thesis also gave an overview on the State Bank of Vietnam in terms of its functions and duties and how it had managed the practical monetary policy since the Renovation period (1986), thereby, assessing the achievements, limitations and causes Adopting lessons learned from the United States and Japan, the thesis proposed solutions to improve the roles of the State Bank of Vietnam is in a new phase of development including completing the legal environment; completing the organizational apparatus; improving the human resource quality; reforming the management and administration of the organization; improving the quality and effectively fulfilling functions and duties LIST OF RELATED PUBLICATIONS Dinh Viet Hung (2015) “Certain goals and solutions to manage bad debts in 2015” State Management Magazine, No 236 (September 2015), pp 45-47 ISSN: 2354-0761 Dinh Viet Hung (2016) “What should Vietnam’s banking sector before TPP comes into effect?” Economy and Forecast Review, No 21 (September 2016), pp.37-39 ISSN: 0866-7120 Dinh Viet Hung, Bui Thi Hanh (2016) “The roles of the State Bank of Vietnam in bad debts management” Vietnam trade and industry review, No (7/2016), pp.149-153 ISSN: 0866-7756 Динь Вьет Хынг (2016) “Merger and acquisition of commercial banks in Vietnam and its impact on the economy from 2011 to 2015” В ы э н и и и ени , е н ны н ны н , №5 (7), н б ь 2016 г, pp.93-95 (Dinh Viet Hung (2016) “Merger and acquisition of commercial banks in Vietnam and its impact on the economy from 2011 to 2015” Economics and Management Issues, International Scientific Journal, No (7) (November 2016), pp 93-95) ISSN: 2412-3773 Динь Вьет Хынг (2017) “Roles of the central bank in Japanese economy from 1945 to now” В е н ны н ны ыэ н и ии н , №1 (8) фе ени , ь 2017 г, pp.105-109 (Dinh Viet Hung (2017) “Roles of the central bank in Japanese economy from 1945 to now” Economics and Management Issues, International Scientific Journal, No (8) (February 2017), pp.105-109) ISSN: 2412-3773 Dinh VH (2017) “Roles of the State Bank of Vietnam in Economic Development after Global Financial Crisis from 2008 to Now” In Young Scientist USA, Vol (p 23) Auburn, WA: Lulu Press, pp.23-27 ISBN: 978-1-365-95329-3 Dinh Viet Hung, Nguyen Thi Thuy Dung (2018) “A study on Comparision of the United States and Japan Central Banks” 14th International Conference on Humanities and Social Sciences (ICHUSO) 2018, November 22nd-23rd, 2018 at KhonKaen Province, Thailand, pp.508-516 ISBN (e-book): 978-616-438-332-6 Dinh Viet Hung, Tran Thi Lan Huong and Bui Van Vien (2019) “Economic Regulation Role and Some Solutions to Improve the Operational Efficiency of the State Bank of Vietnam in International Economic Integration” The 15th International Conference on Humanities and Social Sciences (IC-HUSO 2019), 11th – 12th November 2019, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand, pp 1131 – 1145 ISBN (e-book): 978616-438-425-5 ... Academy of Social Sciences – Vietnam Academy of Social Sciences Supervisors: Assoc Prof Dr Nguyen Xuan Dung Assoc Prof Dr Tran Thi Lan Huong Reviewer 1: Prof Dr Dang Thi Loan Reviewer 2: Assoc Prof... failures may help Vietnam draw interesting lessons A study comparing the role of central banks in the United States and Japan in economic development to draw lessons for Vietnam in global integration... Vietnam Based on these considerations, I have chosen the topic: "The role of the central banks of the United States and Japan in economic development: A comparative study and lessons for Vietnam"