• Causes of inflation in 2011High inflation in 2011 due to many causes, not only due to the rising price of these necessities.Cause: the State of development of the economy at any cost, especially starting from the past five-year term of Prime Minister Nguyễn Tấn Dũng. Government recently set out the target of developing non-fact: 7-7.5% per year in the next 5 years and 7-8% in the next 10 years. Meanwhile, Vietnam's economy experiencing inflation 11.75% of the victims in 2010 higher than all the neighboring countries. The Government increased public investment program through the State-owned enterprises (SOE) and consequently increases the level of credit. Therefore we can say that the current inflation in large part due to the overall demand pull.The second cause: because there the issue of overspending the budget equivalent to 8.9% and 5.9% of the total GDP (Gross Domestic Product-the GDP) in 2009 and 2010. Balance of trade deficits often for many years. This deficiency levels equivalent to 8.9% and 10.2% of GDP in 2009 and 2010. These numbers demonstrate that the State's spending is higher than income and higher import demand export value. Two deficiencies created by this pressure on prices by both pull and bridge impact costs push.
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