Unconventional Monetary Policy in Vietnam

Unconventional monetary policy, Vietnam, quantitative easing, financial stability, monetary tools.

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February 28, 2025

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In The Context of Economic Integration and Increasing Financial Instability, The Application Of Unconventional Monetary policy (UMP) has become an essential approach for many central banks worldwide, including Vietnam. This study explores the theoretical foundation of unconventional monetary policy, its implementation in Vietnam, and its effectiveness in addressing economic challenges. Through case studies and data analysis, the paper evaluates key measures such as quantitative easing (QE), interest rate control, liquidity support programs, and yield curve control (YCC). Moreover, the paper highlights challenges and limitations in adopting UMP in Vietnam, particularly concerning financial market development and regulatory capacity. Finally, we propose policy recommendations to enhance the effectiveness of UMP in Vietnam’s evolving financial landscape.