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From The Report: Vietnam 2016
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An active trading nation, Vietnam is poised to play an important role in ASEAN’s regional integration story. In particular, the country has established itself as a powerhouse in agriculture and textiles. New sectors to be developed in the future include mining, minerals processing and electronics. The main risks facing the country include a rapid increase in debt, inflation and currency volatility. Since the 1997 Asian financial crisis, however, Vietnam’s political leaders have exercised prudence in macroeconomic policy, with a focus on the health of the banking sector and balanced fiscal policy. Foreign investor involvement has increased access to long-term foreign capital in much needed areas such as infrastructure and transport.

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Articles from this Chapter

Overview

Exceeding expectations: Liberalisation policies are resulting in sprightly growth rates
OBG
plus

Stretching along the eastern coast of the Indochinese Peninsula in South-east Asia, the Socialist Republic of Vietnam has risen to become one of the region’s success stories, following a remarkable post-war economic recovery. Its vast coastline, rolling highlands, dense jungle and abundance of natural resources have supported rapid industrial development, while ongoing economic liberalisation and government initiatives to semi-privatise a number of state-owned enterprises (SOEs) have proven highly effective in attracting foreign direct investment (FDI). The country has witnessed sharp improvements in its macroeconomic fundamentals: GDP per…