Current issues

Group 12: 1. Lê Khánh Huyền

2. Đoàn Nguyễn Tùng Sơn
3. Nguyễn Đức Trung
4. Phạm Quang Hưng
5. Đoàn Đức Trung
6. Nguyễn Thành Lộc
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Reality of The
European Debt
Crisis
1. What is European debt crisis?

• over-indebted
• unable to pay their
debts
 1.What is European debt crisis?
• The highest debt rates,
• The high unemployment rate.
• Tax revenues are not enough to offset the cost
• Productivity of the whole economy is low
 2.How did the crisis begin?

The European debt crisis erupted in the wake of the Great

Recession around late 2009, and was characterized by an
environment of overly high government structural deficits
and accelerating debt levels.
 2.How did the crisis begin?

Of all the 17 countries in the Eurozone, 5 countries(

Greece, Italy, Spain, Portugal and Ireland) have the
highest debt rates.
3.What did the government do about the crisis?

• Bailouts packet:

=> The Eurozone member states

created the European Financial
Stability Facility (EFSF) to provide
emergency lending to countries in
financial difficulty.

• The Long Term Refinancing

Operation, or LTRO:
 4. What is the current status of the crisis?

• The crisis still lives on in the form of very slow

economic growth and a growing risk that Europe
will sink into deflation (negative inflation).
5. What is the outlook for the crisis?
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Causes
 Causes

1. Rising
government debt
level
1. Rising government debt
level
Greece experienced a depression
• Greek GDP fell from
€242 billion in 2008
to €179 billion in
2014, a 26% decline

• The unemployment rate

rose from below 10%
(2005–2009) to around
25% (2014–2015

• An estimated 44% of
Greeks lived below
the poverty line in
2014.

Source: Eurostat
1. Rising government debt
level

Loans

Bailout
packages
 1. Rising government debt
level
Excessive spending leads to debt

• Average fiscal deficit

rose from 0.6% to 7%
• Average government debt
increased from 66% to 84%

Source: Wikipedia
1. Rising government debt
level

Source: Zero Hedge

 1. Rising government debt
level
No penalties on debt-to-GDP violation

Euro
Violation Expel power
loss
 Causes

2. Trade
imbalance
2. Trade imbalance

Source: Euro-Lex
2. Trade imbalance
Wage growth < Productivity growth
Competitiv
eness loss
2. Trade imbalance

Currency value
decline
 Causes

3. Structural
problems
3. Structural problem

No common treasury

Unable to enforce
members
3. Structural problem
Slow response to problems
3. Structural problem
Dependence
between
countries

No
competitiveness
 4. Monetary
inflexibility
Single monetary system

Unable to pay Cannot fix trade

creditors deficit
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Consequences
1. Impact on Economic and
Potential Growth
Adverse feedback effects

Loan Asset Credit

books valuations supply
 Potential Long-term
output growth

Economic
activity Potential
output
 1.1 On Economic Activity

Financial Global
System Trade

Autumn
of 2008
 Through financial system

England
+
Euro Area
EU
US
Economic
Large Contraction
Losses activity
Through Global Trade

Investment

Strongly
plummeted

Demand
 Real
GDP -
4%
Banking
losses 2- Huge
3 times
Recession
 1.2 On Potential Growth

Predicted from 2%1%

because of aging population
 Restructurelization
 2.Impact on Labor Market and
Unemployment
Labor market : Considerably weaken in second-
half 2008 and keep reducing in 2009.

+
Unemployment rate + 2% and keep increasing
(Predict) ~11% in 2010
 3. Impact on Budgetary Positions

Fiscal deficit: <1%GDP (2007)  7%GDP (2010)

Public Debt Crisis
Spain
Portugal $441
Italy blns
Greece France
13.6%GDP …
(2009)
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Solution
 1. Short-term reform
• First, establish the European Financial Stability Facility (EFSF).
• Secondly, the restructuring of banks
• Thirdly, debt relief for large indebted countries.
 2. Long tern solution
• The establishment of the European
Stability Mechanism (ESM)
• The establishment of the banking union
• A common fiscal transaction tax
• The context of the debt crisis, among the 17 countries in the
Eurozone, five countries Greece, Italy, Spain, Portugal and
Ireland are the countries with a debt ratio highest
 Solutions
-The policy of "tightening" of all countries that are in debt
-The European Central Bank is constantly buying bonds from these countries, so they have the
money to rebuild the economy.

=>These austerities are being applied in countries such as Greece, Italy, Portugal, Spain and
Ireland. And the tug of war is a slowdown in growth, dragging the whole region into a slump .
-Facing the threat of disintegration, the European Central Bank has come to the rescue of the
last, buying bonds of debt members.
-The bank spends billions more on relief programs, not only to help governments but also to
help the banking system of member states.
David Pickus
• "What I would like to say here is
that we are not completely
desperate, or that we have no
means to deal with it, and that both
the core states and the nations that
are in debt need to understand.
How has the crisis come about and
we will certainly have a solution.
"My advice is that these countries
have to be alert and aware of the
challenges they face, compared to
30 years ago. In terms of
economics, we are much richer.
"Of course, poverty is still
happening in many parts of the
world, but overall, compared to a
generation earlier, we have
produced more Wealth and wealth.
And I believe that we have created
a lot u power both economically
and socially and that is what we
have to acknowledge. "
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Dirty Food: Current Issue
in Vietnam
 Background
We all know that eating is the
essential need of every
human being to eat. In
addition, food is a direct
element of human health.
Are food sources that we eat
every day have clean food? Is
food helping us live longer or
is it damaging our health? As
food so important, is food
hygiene and safety an
important problem?
 Background

What do you think about these foods?

 Background
What do you think if these foods originate from these things bellow?​
 Background
Infact,the problem of food safety in Vietnam is at an alarming rate. If you find out about t
his content, you will find many articles with similar content: food worries.​
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
 Reasons

From sellers side From buyers side

Profits Cheap
 Reasons

On the government side,

their biggest mistake was
losing control of dirty
foods. In other words, we
can call it loose
management.
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Consequences

Cancer?
Consequences

Terrible disease caused by

eating dirty foods
 Consequences’ figures
Reasons of Cancer
According to
25%
Representative of the
35% Vietnam Cancer
Society, every day
there are 550 new
10%
cancer cases and 205
deaths from cancer.
30%

Dirty foods Cigarette Genetic factors Others

Figures in baomoi.com, provided by Dr. Hoang

Dinh Chan - Chief of Thoracic Surgery, K Hospital
- Director of Hung Viet Cancer Hospital
Consequences’ figures
• Nearly 650 people
have food poisoning
in the first three
months of 2017.
• About 250-500 cases
of food poisoning,
7,000-10,000 people
hospitalized and 100-
200 deaths every
year.
Consequences

On consumers’
behaviour:
People are obsessed with dirty
food that they write a whole
book about it
Consequences

The belief of consumers in domestic food

decrease.
They do not know what to buy to eat.
 Consequences on economy
Reduces competitiveness of
domestic agriculture
products

Reduce the quality of the country,

reducing the competitiveness of export
in the world.

Great damage to the economy of

the country.
 Outline
1. European debt crisis
1.1. Background
1.2. Causes
1.3. Consequences
1.4. Solutions
2. Vietnam’s issue: Dirty food
2.1. Background
2.2. Reasons of the issue
2.3. Consequences
2.4. Solutions
Solutions
Governments’ policies

• Prevent smuggling

• Tightening
management of
food manufacturing
companies

• Increase fine
 Solutions

• Boost the awareness of citizens by using

mass media.
 Solutions
China has some
achievements
about protect the
safety of food.

In 03/07/2012, China issue new plan to deal with dirty

foods.
Provide technological equipments to producers.
Criteria for assessing the performance
of local authorities annually
Thank you for listening!
Group 12: 1. Lê Khánh Huyền
2. Đoàn Nguyễn Tùng Sơn
3. Nguyễn Đức Trung
4. Phạm Quang Hưng
5. Đoàn Đức Trung
6. Nguyễn Thành Lộc
 QUIZ
1. Which is the cause of the
EU debt crisis?
A. Rising government debt
level
B. Structural problems
C. Trade imbalance
D. Inflexible monrtary system
E. All f the above
 QUIZ

2. Which country was the most responsible

for the EU crisis?
A. Greece
B. UK
C. Spain
D. German
 QUIZ
3. What caused the trade imbalance in EU?

A. Low investment in manufacturing

B. Wage growth exceeding productivity
C. Restriction policies to imports
D. Low potential market
 QUIZ

4. What are the keywords when talking

about dirty food?
A. profits
B. cheap
C. loose management
D. All are correct.
 QUIZ

5. Dirty food in Vietnma has bad impact on

which part of the economy?
A. Domestic market of agriculture
B. Reduce competitiveness of exports
C. Change customers’ behavior in demand
D. All are correct.
 QUIZ

6. Dirty food could be solved by:

A. Government’s policies.
B. Raising public’s awareness.
C. Learning solutions from other
countries
D. All are correct.