Open AccessVIETNAM AND THE THREAT OF FALLING INTO THE MIDDLE INCOME TRAP
Author(s) -
Khai Van Ngo,
Hai V. Ngo
Publication year - 2015
Publication title -
khoa học công nghệ
Language(s) - English
Resource type - Journals
ISSN - 1859-0128
DOI - 10.32508/stdj.v18i2.1119
Subject(s) - middle income trap , falling (accident) , economics , trap (plumbing) , per capita , investment (military) , per capita income , development economics , middle income , productivity , sustainability , demographic economics , economic growth , geography , political science , politics , china , population , demography , medicine , ecology , environmental health , archaeology , sociology , meteorology , law , biology
The concept of middle income trap has been introduced in a plenty of research on a nation’s economic development status which refers to the fact that many nations after attaining a certain income will get stuck at that level. Vietnam got rid of the list of least developed countries to join the lower middleincome countries with an annual GDP per capita of 1,052 USD in 2008. Vietnam enjoyed a steady GDP growth of 5.5 – 6% per year in the period between 2008 and 2014. However, the Vietnam’s economy shows signs of slowdown, low productivity, low return on investment, and low economic transition. Vietnam is also warned to be under the threat of falling into the middle income trap. This paper aims to provide a clear picture of the middle income trap and the threat that Vietnam may fall into the middle income trap, thereby proposing some solutions for Vietnam to circumvent it and sustainably develop the economy.