VN’s booming economy hailed

A recent study by the World Bank suggested that Viet Nam’s economic growth is the result of three major changes: embracing free trade policies, reducing overregulation and costs of doing business, and investing in human capital and infrastructure.

Trade liberalization opened the door to new agreements, lowering taxes for international commerce operations and increasing regional competitiveness. To date, Viet Nam has successfully signed sixteen bilateral and multilateral free trade agreements, and it has become a member of the World Trade Organization, the Association of Southeast Asian Nations (ASEAN), and the Eurasian Customs Union.

The deregulation of several key industries also played a crucial role in boosting the country’s business development. By eliminating excessive controls and providing a clearer framework for doing business, more citizens foresaw profitable opportunities in the private sector.

But the increased number of businesses brought several new requirements along with it. Education was needed to elevate quality standards, while infrastructure investments were essential to supply more energy and improve connectivity within the country.

Overall, government efforts paid off. Last month, World Economic Forum (WEF) President Borge Brende praised Viet Nam’s economic performance at the Viet Nam Business Summit. He pointed out the positive impact of the numerous economic reforms implemented by the government over the last few years to reduce debt and stabilize public finance.

Vietnamese Finance Minister Dinh Tien Dung explained that these measures were essential to put the nation back on track with regard to public debt. The country’s public debt had risen to as much as 64% of GDP between 2011 and 2015. But thanks to the latest reforms, debt is expected to decrease to 60% three years from now./.