Contribution Of Financial Elements In Vietnam's Economic Development

Finance is the blood of modern economy and the core of national economy.Finance is an important lever to regulate macro-economy in modern economy.It plays a very important role in establishing and improving the national macro-control system.In modern economic life,finance is the lifeblood and medium of communicating the whole social and economic life.In order to study the contribution of financial factors in Vietnam's economic growth,this paper firstly analyses the current situation of financial factors and Vietnam's economic growth,and then analyses the economic development from GDP,total retail sales of social consumer goods and import and export.Then,the development status of financial intermediation,stock market and foreign direct investment is analyzed through the construction of relevant indicators.Then,this paper chooses the annual data of Vietnam's GDP,total deposits and loans of financial intermediaries,total market value of Listed Companies in the stock market and foreign direct investment from 2000 to 2017 for empirical analysis,establishes VAR model,and further analyses the relationship between Vietnam's financial factors and Vietnam's economic growth through empirical analysisThe study finds that among the three financial contributing factors,the financial intermediary contributes 44.25%to Vietnam's economic growth,followed by foreign direct investment contributes 16.39%to Vietnam's economic growth,while the development of the stock market has the least correlation with Vietnam's economic growth,and its contribution is only 0.84%.This may indicate that the efficiency of Vietnam's stock market is seriously constrained,resulting in its economic growth.Economic growth has little effect.According to the conclusion of this study,this paper puts forward policy suggestions to further improve the utilization of foreign capital,improve the system construction of Vietnam's banking system,promote the steady development of the stock market,and strengthen the supervision and management of government departments.