Evaluating factors affecting the stability of Vietnam's financial system

The article evaluates factors affecting the stability of the financial system in Vietnam.Because of many unpredictable fluctuations, significantly affecting trade and investment activities, financial stability is always an essential requirement for Vietnam to ensure the healthy development of the economy.The data were collected from Vietnamese banks' financial reports from 2006 -2020, Word Bank, and the General Statistics Office of Vietnam.Statistical description, matrix correlation, and regression are methods to estimate factors affecting the financial system's stability in Vietnam.The feasible generalized least squares regression method was used to analyze the influence of the actors on the stability of the Vietnam's financial system.The Current Account, inflation, Vietnam's economic growth and exchange rate are internal variables affecting financial stability.Shocks on financial stability impact the financial stability of internal factors with opposing movement patterns.Inflation puts severe pressure on the stability of Vietnam's financial system.Vietnam's economic growth, current account surplus, and exchange rate contribute to stabilizing the financial system.Besides, the results of empirical research explain the impact of shocks on the financial stability of internal factors such as the current account, exchange rate, inflation and Vietnam's economic growth.The paper proposes recommendations to stabilize the Vietnam's financial system based on the experimental results.