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Past Growth and Structural Transformation

In: Vietnam's Economic Leap

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  • Hinh T. Dinh

    (Policy Center for the New South and Economic Growth and Transformation)

Abstract

Vietnam’s structural transformation—shifting from agriculture to manufacturing and services—has been instrumental in its economic progress. The analysis in this chapter indicates that while structural transformation remains an important driver of Vietnam’s growth, its pace has slowed over the past decade. Structural transformation played a significant role during the 1990s and 2000s, but its impact has since diminished. A closer look at employment trends reveals that as agriculture and manufacturing shed workers, many moved into service sectors—some of which continue to have productivity levels below the economy’s average. Additionally, Vietnam’s labor quality contribution to productivity growth has been minimal, while investment in information and technology has slowed in recent years, raising concerns about the sustainability of the current growth model.

Suggested Citation

  • Hinh T. Dinh, 2025. "Past Growth and Structural Transformation," Springer Books, in: Vietnam's Economic Leap, chapter 2, pages 15-32, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-08904-5_2
    DOI: 10.1007/978-3-032-08904-5_2
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