Report: Reforms critical for Vietnam

The report, compiled by the Vietnam Centre for Economic Policy Research (VEPR) in Hanoi, said the country’s economic growth this year would go two ways. In the first scenario, economic growth would hit 5.04 per cent if inflation was 4.95 per cent and in the second, if inflation reached 6.64 per cent, economic growth would reach 5.35 per cent.

The document reflects concerns about the country’s economic restructuring that has slowed down in comparison to two years ago. It also mentioned opportunities that Vietnam could miss if reforms were not undertaken.

It shows that Vietnam hasn’t comprehensively capitalised on international integration. After six years as a member of the World Trade Organisation, the country’s economy reached a growth rate of only roughly 5.8 per cent on average against the average rate of 7.8 per cent in the previous six-year period from 2002 to 2007. Inflation from 2002-07 was also only 7.35 per cent against 11.5 per cent from 2008-13.

“Vietnam missed many opportunities to gain economic growth through restructuring the economy,” the report wrote.

Vietnam would miss the opportunity to progress on a smooth path if a new economic model and suitable supporting policies were not pursued, the report states.