Strategies for Long Term Economic Growth in Vietnam.

摘要

Since the decision by the Communist Party of Vietnam to transform its state-controlled economy into a more market driven one nearly three decades ago, the country has enjoyed tremendous growth and shown favorable gains in key economic indicators. The success of Vietnam's transition to a market economy has not been without challenges. Its economy has been significantly affected by external financial crises and macroeconomic instability, the result of which has been double digit inflation and reduced foreign investment. This has led analysts to question the ability of Vietnam to continue its economic growth over the long term. In view of the recent economic turbulence, this paper contends Vietnam must pursue economic, financial and socio-economic strategies to develop private domestic enterprises, in addition to, attracting foreign direct investment to encourage long term growth. An economic strategy is needed to reduce the impact of inefficient state owned enterprises on the Vietnamese economy. The financial strategy must ensure access to bank loaned capital for private domestic enterprises. The socio-economic strategy must develop a labor pool that possesses the requisite high technology skills. This paper concludes that successful implantation of these strategies will greatly aid stable growth of the economy and will help Vietnam continue to reach its modernization goals.