Viet Nam: Recent Economic Developments and Key Challenges
51 Pages Posted: 4 Mar 2008
Date Written: December 8, 2007
This paper includes a review of recent economic developments in Viet Nam, highlighting recent positive trends in reducing poverty and other key economic indicators. The role of innovation and the relatively rapid uptake of technology is emphasized as a possible factor underpinning recent rapid growth in labour productivity and incomes. Equitable human development and allocation of factors of production may be facilitating the transfer of new skills and technology.
While medium-term economic prospects look mostly sound, the paper identifies the following potential development bottlenecks: (i) the rapidly increasing demand for skilled workers and managers and for physical infrastructure; (ii) the social tensions inherent in the rapid rural-urban transition; (iii) institutional development and public sector efficiency; and (iv) environmental challenges. Other key risks relate to the possibility of a downturn resulting from (i) the current investment boom (and bubbles in the capital and real estate markets) and (ii) a possible downturn in regional and/or global economies.
Keywords: viet nam, vietnam, economy, economic developments, reforms, update
JEL Classification: O53, O11, P27
Suggested Citation: Suggested Citation
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