Binh Thanh Dao
Hanoi University – Faculty of Management and Tourism
To Hoang Viet Linh
November 17, 2013
Game theory, a mathematic approach to analyze strategic interaction, has inevitably played an important role in studying and research into politics, biology, psychology; and mostly active in economics issues. Particularly, game theory seems to be an effective tool when analyzing sovereign debt negotiation, when a country falls to serve its public debt obligations and try to negotiate with the creditors to reschedule the debt.
This paper is undertaken to present game theory’s powerful application in sovereign debt negotiations. The case study of the current Vietnamese sovereign debt situation is presented to provide a deeper look at how game theory actually works to analyze a sovereign debt negotiation. Besides, some problems of the current Vietnamese sovereign debt and public investment are also discussed. Therefore, this paper can be a good reference for policymakers when dealing with sovereign debt issues.