The report, titled Vietnam 2035, suggests that Vietnam build a more competitive private sector, support smart urbanisation, promote innovation and take advantage of increasing trade opportunities to enact broad structural reforms.
Reaching the upper middle income status is an ambitious goal and requires Vietnam to grow at least 7% in each of the next 20 years to raise per capita income to over US$7,000 or US$18,000 in purchasing power parity terms by 2035.
The report underlines economic growth balanced with environmental sustainability, equity and social inclusion, and a rule-of-law state as the three pillars to realise Vietnam’s aspirations.
Speaking at the launch of the report on February 23, Minister of Planning and Investment Bui Quang Vinh warned that without these reforms, it would be hard for Vietnam to avoid falling into the middle income trap and lag behind.
He considered these reforms a continuation of the historic Doi Moi process and the only choice for Vietnam to reach the goal of becoming a prosperous country.
Minister Vinh said that the achievements of Doi Moi are undeniable but Vietnam remains a poor country in relation to regional countries, citing Japan and the Republic of Korea as success stories of transforming from poor to developed economies.
He emphasised that the need for further reform is more urgent than ever as Vietnam’s golden population period is nearing its end, the motivations of the Doi Moi reform are dwindling and Vietnam is becoming more deeply integrated in the world.
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World Bank Group President Jim Yong Kim said Vietnam should build modern and transparent institutions to help the country meet its ambitious goal of becoming a modern industrialised nation within a generation.
He said improvements in productivity, environmental protection and economic innovation can help Vietnam maintain high levels of growth, and that it is critically important to remove barriers that exclude marginalised groups and deliver quality public services to an aging and urbanising middle class.
