Gov’t-World Bank Group joint report recommends reforms to foster private sector competitiveness, promote social inclusion and build modern institutions.
HANOI, February 23, 2016—A new report recommending steps to help lift Vietnam to upper-middle-income status in two decades suggests that Vietnam build a more competitive private sector, support smart urbanization, promote innovation, and take advantage of increasing trade opportunities to enact broad structural reforms.
The Vietnam 2035 report, prepared jointly by the Government of Vietnam and the World Bank Group, lays out key reforms for the lower-middle income country to grow its economy, become more equitable, and put in place modern governance over the next 20 years. Reaching the ambitious goal of upper-middle-income status would require Vietnam to grow at least 7 percent per year, raising the average income level to over $7,000 – or $18,000 in purchasing-power parity terms – by 2035, compared with $2,052 – or $5,370 in PPP terms– in 2014.
“In the last 30 years, Vietnam has become one of the world’s great development success stories, rising from the ranks of the poorest countries. On the strength of a nearly 7 percent average growth rate and targeted government policies, tens of millions of people have lifted themselves out of extreme poverty,” said World Bank Group President Jim Yong Kim.
Kim said that the Vietnam 2035 report, with inputs from international and Vietnamese experts, reflects Vietnam’s aspirations of becoming a modern, industrialized nation within a generation.
“Improvements in productivity, environmental protection and economic innovation can help Vietnam maintain high levels of growth. It will be critically important to remove barriers that exclude marginalized groups and deliver quality public services to an aging and urbanizing middle-class,” Kim said. “The report recommends that Vietnam build modern and more transparent institutions – those steps will help the country meet its ambitious goals.”