(VOV) - Japanese economists shared experiences with Vietnamese partners at a seminar on 'Economic Bubbles: Lessons Learnt from Japan', held in Hanoi on May 5.
A "bubble economy" is one in which a lot of trade takes place with discrepancies between the trading price and the intrinsic value of products. When the prices of assets, such as stocks and land, increase sharply and inflate the "bubble", many investors try to sell their assets quickly, which causes the prices to fall and burst the "bubble".I
Japanese experts say it is high time for Vietnam to find the right track. They suggested that when a financial crisis occurs, the country must create an available, flexible financial and credit system.
Management agencies should also maintain a healthy banking system and provide accurate information about bad debts to deal with arising issues promptly.
Experts said that “bubbles” will occur repeatedly but a crisis should not occur twice so practical and flexible measures should be put in place to solve the problem.