Author: Vu Minh Khuong, NUS

In her recent article ‘Vietnam – the next BRIC?‘, Suiwah Leung pointed to macroeconomic instability as a major obstacle for Vietnam as it seeks realise its economic potential. This point is valid. Vietnam’s macroeconomic instability has significantly weakened the country’s economic competitiveness and performance. And Vietnam’s macroeconomic instability is not only short-term turbulence but rather a significant system-wide problem caused by the country’s deficiency in fundamental development concepts and a lack of strategic effort to build good governance.

Evidence of the seriousness of Vietnam’s macroeconomic instability and its adverse effect on the country’s performance abounds. Read more…

Author: Vu Minh Khuong, National University of Singapore

Since unprecedented economic reforms began in 1986, Vietnam has transformed itself from a country on the verge of economic collapse and isolation into one of the most open and fastest-growing economies in the world. Enabling the country’s rapid GDP growth, averaging 7.5 per cent between 1990 and 2008, is its robust integration into the world economy, with an average trade growth rate exceeding 20 per cent over the same period.

In 2008, Vietnam was more integrated than most its Asian peers in both trade and FDI measures. Vietnam’s impressive economic performance has been driven by its three major strengths.

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