According to Mariam J. Sherman, World Bank Country Director for Vietnam, Cambodia and Laos, the model of abundant labor, rapid capital accumulation and trade integration helped Vietnam escape poverty but will not take it to high-income status. The working-age population peaked in 2014, so growth must now come from productivity, which is only about $6.7 of value added per worker-hour, less than half of China's level, while the FDI sector (73% of export turnover) has thin links to domestic firms. The World Bank proposes four measures: prioritizing job quality, improving connectivity across markets, people and localities, with about $400 billion needed for transport and energy infrastructure, turning climate risks into growth opportunities, and reforming institutions so the state shifts from planning to enabling. UK Ambassador Iain Frew said the UK-Vietnam Free Trade Agreement and both countries' CPTPP membership are creating new opportunities for businesses.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Chuyên gia World Bank: Mô hình cũ không thể giúp Việt Nam 'giàu'
Read the original on VnExpress ↗
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World BankVietnamGDP growthforeign investment
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| Market | Vietnam stocks |
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| Change that session | +0.27% |
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