Barring further unforeseen shocks, Vietnam and the world economy have seen the worst of the 2008-09 recession. Many countries are now adjusting policies to withdraw stimulus measures as self-sustaining growth closer to normal levels re-emerges. As global markets stabilize, Vietnam’s exports should eventually start to grow again and inward investment will regain some of its earlier momentum. Smaller fiscal deficits and tighter monetary policy will be used to avoid large trade deficits, asset bubbles and inflation. As “emergency” macro-management issues recede, Vietnam can once again focus attention on the country’s long-run development strategy.