Vietnam's inflation last month, 27%, reached the highest position in Asia. Prices of everything are skyrocketing, especially basic necessities like gasoline, food, and clothing (for example: food prices have increased by 74%). Excessive foreign investment and a technologically backward industry appear to be the causes. Additionally, the rate of overwork has decreased from 58% to 15% since 1993, but is now likely to increase again. Some workers who helped lift Vietnam out of poverty are suffering from expensive city life and considering returning to their rural homes. People are disappointed because they see no effective solution from the government. However, most economists believe that this period is only a temporary burst of growth. Detailed information from the article: “The government raised the price of gasoline by 31 percent to a record high of 19,000 dong ($1.19) per liter (or about $4.50 per gallon) . Diesel and kerosene prices have increased further. » - “People are cutting back on their diet, limiting their travel, looking for a second job, delaying major purchases and waiting until the cost of a wedding drops before getting married. » - “Rumors of price increases have caused panic buying of fuel and rice. »- “Vietnam is suffering from the global economic slowdown and high inflation that has spread to Southeast Asia. » bank accounts » Analysis - General type of inflation: galloping Normally, an inflation rate of 1 to 2% is acceptable for an economy (it generally goes with a growth rate of 3 to 5%). Rampant inflation reaches a rate of 10 to 20% and begins to spiral out of control. In this case, the Vietnamese inflation rate has gradually increased to 27% and does not seem to stop yet. This could eventually turn into hyperinflation if the government fails to resolve the problem. However, given that Vietnam has grown by 8% over the past decade, the situation is not so pessimistic. of the economic slowdown and high inflation that has spread to Southeast Asia. The price of fuel, an important resource, has increased around the world, also leading to an increase in the cost of raw materials and transportation. The higher the cost of production, the lower the number of productions, leading to a decrease in overall supply. o Demand-pull: Demand-pull inflation occurs when there is an increase in aggregate demand (total demand increases as consumption, investment, government spending or net exports increase) rumors of price increases caused panic buying of fuel and rice ».