- Economic restructuring and greater integration with the international economic system has brought Vietnam impressive gains in wealth, trade, and investment.
- Such efforts have not, however, resolved Vietnam’s ‘missing middle’ or the lack of a productive domestic private sector and the continued dominance of the state-owned sector.
- While these challenges represent a risk to Vietnam’s future growth potential, initiatives such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership provide an opportunity for further trade and investment expansion.
Vietnam’s cautious and sequenced adoption of market institutions has brought more than two decades of impressive economic performance, all while leaving the country’s underlying political economy largely intact. Notably, Vietnam has leveraged greater integration with the international economic system, including through ascension to the World Trade Organization in 2007 and the conclusion of a spate of free trade agreements, as a means of reinforcing domestic change. Continue reading “THE MISSING MIDDLE: A POLITICAL ECONOMY OF ECONOMIC RESTRUCTURING IN VIETNAM”