Rising capital investment is expected to bolster Vietnam's international competitiveness. However, fluctuations in the domestic price level also play a critical role.
Between 2013 and 2022, wages in Vietnam increased, with technology and highly skilled sectors experiencing faster wage growth than low-skilled manufacturing sectors. Unemployment fell steadily over most of the decade, and inflows of foreign direct investment (FDI) rose significantly, though they remained concentrated in specific high-tech industrial zones.
| Year | Vietnam's inflation rate (%) | Germany's inflation rate (%) | Japan's inflation rate (%) | Global average inflation rate (%) |
|---|---|---|---|---|
| 2013 | 6.6 | 1.6 | 0.4 | 2.6 |
| 2014 | 4.1 | 0.8 | 2.7 | 2.3 |
| 2015 | 0.6 | 0.1 | 0.8 | 1.4 |
| 2016 | 2.7 | 0.4 | −0.1 | 1.5 |
| 2017 | 3.5 | 1.7 | 0.5 | 2.2 |
| 2018 | 3.5 | 1.9 | 1.0 | 2.4 |
| 2019 | 2.8 | 1.4 | 0.5 | 2.2 |
| 2020 | 3.2 | 0.1 | 0.0 | 1.9 |
| 2021 | 1.8 | 3.1 | −0.2 | 3.5 |
| 2022 | 3.2 | 7.9 | 2.5 | 8.0 |
Using information from the stimulus material, evaluate whether the changes in Vietnam's price level between 2013 and 2022 are likely to have harmed Vietnamese households and firms.
