ABSTRACT
Fiscal policy is an important macroeconomic instrument of the government for intervening in the economy to achieve its objectives. The government budget is the largest fund nationally, and therefore its size and composition strongly influence the whole economy. As Vietnam has been moving from a centrally planned to a market-based economy with a socialist orientation, it is critical to properly address the role of fiscal policy in promoting economic growth and creating a stable macroeconomic environment. This chapter is divided into three sections:
• A brief discussion of the fiscal development process in Vietnam since the Doi Moi policy was launched. This was an important shift in Vietnam’s fiscal policy from a primitive subsidization system towards a strong and effective macroeconomic management. Uncompleted steps are also discussed.
