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Liberalization and Growth in Vietnam

Author

Listed:
  • Kai Dutsch
  • Gunther Schnabl

Abstract

Due to a planned economy and several wars, growth and prosperity in Vietnam were low for a long time. Following market-oriented reforms, such as the privatization of agricultural enterprises and the authorization of private companies, growth in Vietnam has accelerated. The stabilization of public finances, inflation, and the exchange rate have contributed significantly to growth. Nevertheless, the gradualist liberalization process is not yet complete, as there is still no truly open financial market and state-owned enterprises still account for a large share of domestic value added. As a result, growth momentum is driven primarily by foreign direct investment and exports. More reforms are necessary to catch up with more advanced East Asian industrialized nations such as Thailand, South Korea, and Japan

Suggested Citation

  • Kai Dutsch & Gunther Schnabl, 2026. "Liberalization and Growth in Vietnam," CESifo Working Paper Series 12783, CESifo.
    • Handle: RePEc:ces:ceswps:_12783
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    References listed on IDEAS

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    1. Baccini, Leonardo & Impullitti, Giammario & Malesky, Edmund J., 2019. "Globalization and state capitalism: Assessing Vietnam's accession to the WTO," Journal of International Economics, Elsevier, vol. 119(C), pages 75-92.
    2. Mr. Krishna Srinivasan & Erich Spitäller & Mr. M. Braulke & Mr. Christian B. Mulder & Mr. Hisanobu Shishido & Mr. Kenneth M. Miranda & Mr. John R Dodsworth & Keon Lee, 1996. "Vietnam: Transition to a Market Economy," IMF Occasional Papers 1996/001, International Monetary Fund.
    3. Shenggen Fan & Pham Lan Huong & Trinh Quang Long, 2004. "Government Spending and Poverty Reduction in Vietnam," World Bank Publications - Reports 24114, The World Bank Group.
    4. Adam McCarty, 2001. "Economy of Vietnam," Development and Comp Systems 0110002, University Library of Munich, Germany.
    5. Tyler, William G., 1981. "Growth and export expansion in developing countries : Some empirical evidence," Journal of Development Economics, Elsevier, vol. 9(1), pages 121-130, August.
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    Keywords

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    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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