Premium
Vietnamese Economy at the Crossroads: New Doi Moi for Sustained Growth
Author(s) -
Tran Van Tho
Publication year - 2013
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/aepr.12012
Subject(s) - vietnamese , economics , industrialisation , foreign capital , capital (architecture) , middle income trap , poverty trap , poverty , market economy , international economics , economic system , monetary economics , economy , macroeconomics , foreign direct investment , economic growth , political science , history , philosophy , linguistics , archaeology , law , china
Thanks to doi moi , V ietnam was successful in escaping the poverty trap and emerged as a lower middle‐income country in the late 2000s. From that time, however, the Vietnamese economy entered a new phase, which has been characterized by slow growth, weak international competitiveness, and macroeconomic instability. Apart from short‐term problems associated with the management of increasing foreign capital, the major factors accounting for the difficulties of V ietnam's current economic phase can be attributed to the Vietnamese style of the gradualist strategy of transition from a planned to a market economy, which protects state‐owned enterprises, and consequently to the failure to respond to the rapid rise of C hina. For further industrialization and sustained growth, V ietnam should embrace a new doi moi that follows the efficient type of gradualist strategy, with a special focus on new reforms of state‐owned enterprises and a policy that promotes the country' s dynamic comparative advantage.