This study employs an interregional input-output table model (27 industries and 8 regions) to
analyze the multiplier effects of different economic sectors in the Vietnam’s economy upon receiving
fiscal stimulus packages. The results show that the multiplier effects of agrregate demand’s basic
elements change over time. In the past, investment used to be the element which had the highest
multiplier effects in terms of value. However, its value has been decreasing, and recently consumption
is becoming the element with highest multiplier in which the multiplier effects of rural consumption is
higher than that of urban consumption. Geographically, South East and South North regions have
higher multipliers. In terms of manufacturing and service sectors, the food processing industry has the
highest multiplier. The following are the consumable good-processing sector and the material
manufacturing for intermediate consumption, which have higher backward and forward linkage
indexes than average. Therefore, the three industries need to be considered for fiscal stumilus more
than any other sectors if the overall target is to enhance the economic growth.
