Vietnam needs 9% growth to catch up with regional economies

Wednesday, 2014-09-10 11:29:08
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Vietnam can escape the middle-income trap if it achieves faster growth in the next two decades.
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Nhan Dan - Vietnam can be on par with regional economies such as the Republic of Korea and Taiwan (China) if it records annual growth of 9% over the next 20 years, the World Bank (WB) has said.

It added that Vietnam would fall into the middle-income trap if growth only averaged around 5-6% per annum.

The appraisal was made at a meeting on September 9 chaired by Deputy Prime Minister Vu Duc Dam and WB East Asia and Pacific Regional Vice President Axel van Trotsenburg in preparation for the Vietnam 2030 Report.

The report, expected to be finalised by the end of 2015, will give recommendations for Vietnam’s economic development in the coming years.

The main questions to be discussed in the report are what Vietnam should do to enhance the competitiveness of its economy, achieve faster growth and sustainable development, and to bring as many gains from development as possible to the people.

The report will assess Vietnam’s development after nearly 30 years of economic reform, identify the opportunities and challenges facing Vietnam and construct a development scenario in the coming period.

The agreement to compile the Vietnam 2030 Report was reached between Vietnamese Prime Minister Nguyen Tan Dung and WB President Jim Yong Kim during his visit to Vietnam in July this year.