Economic liberalization and Vietnam's long‐term growth prospects

As a result of decades of war and international isolation, Vietnam stands among the poorest nations on earth in terms of standard of living. Ten years of economic liberalization, a policy officially endorsed at Vietnam's Sixth Party Congress in 1986, have brought considerable benefits to the country and its population. There is now clear evidence that Vietnam's economic growth will slow down, not only due its own domestic problems, but also as a result of the current regional crisis affecting many of its top foreign investor nations. The principal aim of this paper is to review the last ten years of Vietnam's economic progress, and discuss potential overall policies and practical measures which Vietnam may consider adopting in order to sustain reasonable economic growth in the long run. The paper advocates a slower growth and faster human development approach based on a greater emphasis on human capital accumulation and a competent and relatively honest administration.