World Bank: Vietnam faces opportunities for a bright future

After 70 years since Vietnam’s Declaration of Independence, 40 years since reunification, and 30 years from the launch of Doi Moi reforms, which catapulted the nation from the ranks of the world’s poorest to one of the great development success stories. Now, Vietnam’s achievements have been acknowledged worldwide. On February 23th 2016, World Bank issued its report on Vietnam’s economic fairy tale, the Vietnam 2035 report. Let see what one of the most credited financial organization said about Vietnam’s growth.
The Vietnam 2035 report, themed “toward prosperity creativity, equity and democracy”, suggests that Vietnam foster private sector competitiveness, promote social inclusion and bolster the state’s effectiveness to climb up the economic ladder into a higher bracket. 
World Bank President Jim Yong Kim said in the last 30 years, Vietnam has become one of the world’s great development success stories, rising from the ranks of the poorest countries. Vietnam’s development achievements over the last 25 years are remarkable. Over this period, the lives of the Vietnamese people have changed dramatically. We have seen economic growth averaging nearly 7 percent, which enabled Vietnam, one of the world’s poorest countries in the 1980s, to leapfrog to middle-income status in a single generation. In an especially remarkable achievement, Vietnam has reduced extreme poverty from 50 percent about 25 years ago to just 3 percent today.
Of course, critical ingredients of success have been visionary leaders, a sense of shared societal purpose, and a focus on the future. Starting in the late 1980s, these elements were fused with the embrace of markets and the global economy, setting the nation on the path to becoming the middle-income country that it is today, raising tens of millions of people out of poverty. Energized by past success but by no means content, Vietnam now aspires, by the year 2035, to modernity, industrialization, and a higher quality of life – aspirations that stand on three major pillars: economic prosperity, balanced with environmental sustainability; equity and social inclusion; and state capacity and accountability. The Vietnam 2035 report – a joint undertaking by experts from Vietnam and the World Bank – evaluates Vietnam’s possibilities and options in this endeavor.
The Vietnam 2035 report identifies what a successful Vietnam could look like in less than 20 years, and the institutional and policy reforms that are needed to get there. 
Vietnam’s own aspirations for 2035 are written in its Constitution, which sets the goal of “a prosperous people and a strong, democratic, equitable, and civilized country.”  Embedded in this is an expectation that by 2035, Vietnam will be a modern and industrialized nation moving rapidly toward this goal. These aspirations stand on three pillars: One, to balance economic prosperity with environmental sustainability; two, to promote equity and social inclusion; and three, to bolster the state’s capacity and accountability.
The rapid growth needed to achieve these aspirations will be realized only if productivity growth accelerates and if the environmental impacts are fully addressed. Productivity growth will benefit from measures to enhance the competitiveness of domestic enterprises, reap the benefits of urban agglomeration, and nurture a creative and innovation-led economy.
Maintaining Vietnam’s record on equity and social inclusion will require that assistance is targeted to marginalized groups -- the ethnic minorities in particular -- and that services are effectively delivered to an aging and urbanizing middle-class society. And to fulfill the country’s aspirations, the institutions of governance will need to become modern, transparent, and fully rooted in the rule of law.
Challenges, of course, remain. Labor productivity growth has been declining for over a decade, reflecting weaknesses in the domestic enterprise sector. Stresses on the environment are intensifying and could hurt the sustainability of economic growth. Some marginalized groups are not benefitting from Vietnam’s economic growth. And the institutions of governance are struggling to keep up with the demands of a dynamic market economy and the aspirations of a growing middle class.
But we believe this report lays out a path to address those challenges and will help the country achieve its goals for greater and more inclusive economic growth. Vietnam is at a turning point of reform and development. We face significant opportunities, but also big challenges. To reach our goal of a becoming a prosperous, creative, equal and democratic Vietnam, our only choice is to implement the reforms recommended by the Vietnam 2035 report.
Another benefit can also be seen. Many countries can learn from Vietnam’s past achievements as well as from its policy decisions in the years ahead.  Vietnam’s lessons include the importance of embracing markets and leveraging the opportunities of global integration; a strong and early emphasis on development of human capital; and making strategic use of international commitments to usher in politically difficult structural reforms./.
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All comments [ 11 ]

John Smith 1/3/16 20:09

Vietnam needs to foster private sector competitiveness, promote social inclusion and bolster the state’s effectiveness to climb up the economic ladder into a higher bracket.

LawrenceSamuels 1/3/16 20:10

In the last 30 years, Vietnam has become one of the world’s great development success stories, rising from the ranks of the poorest countries.

yobro yobro 1/3/16 20:13

The government should focus on three areas: improving productivity and private-sector competitiveness, promoting equity and social inclusion and improving public sector effectiveness.

MaskOf Zero 1/3/16 20:14

Improvements in productivity, environmental protection and economic innovation can help Vietnam maintain high levels of growth.

Only Solidar 1/3/16 20:16

It will be critically important to remove barriers that exclude marginalized groups and deliver quality public services to an aging and urbanizing middle-class.

Deck Hero14 1/3/16 20:17

Vietnam should take steps to strengthen the economy and financial sector, with a focus on more effective regulation, protection of property rights and enforcement of competition policies.

Gentle Moon 1/3/16 20:19

With the achievements already made, a long-term vision, intensive international integration, and efforts made by each citizen, Viet Nam would make even greater strides in the future.

Jane smartnic 1/3/16 20:21

Viet Nam has become one of the world's great development success stories.

Love Peace 1/3/16 20:23

While congratulating Viet Nam on the success of the 12th National Party Congress, the WB Group President valued Viet Nam's efforts in stablising its macro-economy, affirming that the country's orientation to build a socialism-oriented economy is a judicious and suitable strategy.

Pack Cassiopian 1/3/16 20:28

Viet Nam has a strong aspiration, which is to become a modern industrialised country toward prosperity, creativity, equality and democracy.

LawrenceSamuels 1/3/16 20:30

The Doi Moi economic reforms of the late 1980s helped the country move away from its centrally planned economy and toward globally oriented market economy.

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