The article argues that escaping the middle-income trap requires a qualitative transformation of the economy, not just faster growth. Now that Vietnam has entered the upper-middle-income group, earlier advantages such as low costs and easy integration into regional supply chains may no longer sustain long-term development. According to the article, productivity, technology, human resource quality, innovation capacity and firms' competitiveness will determine the ability to create new value. It stresses that transformation capacity, meaning the ability to proactively change the growth foundation, is key, and that the gap between recognising the need for change and actually implementing it is a major obstacle.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Năng lực chuyển đổi: Điều kiện để Việt Nam vượt qua bẫy thu nhập trung bình
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 11/05/2026 | 1,740.73 |
| Change that session | +0.44% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Inflation is a different beast now , and we need new tools to tackle it
The author recalls 2018, when then-governor Philip Lowe sought to lift wage growth, and argues that today the main threat to living standards is high inflation rather than low wages. The bigger challenge for reform-minded policymakers, it says, is avoiding backsliding such as a larger government, a return to protectionism, or migration cuts that worsen labour shortages. The article lists drivers of a new inflationary era, including geopolitical conflicts and energy prices, climate-related disruption, weak productivity, onshoring of manufacturing, demographic labour shortages and concentrated markets, which it says monetary policy cannot easily control. It proposes a new anti-inflation toolbox: tougher competition laws with break-up powers, abolishing anti-dumping rules, removing remaining tariffs, and dropping local content requirements in government procurement. It also revisits Nicholas Gruen's 1997 proposal for an independent Central Fiscal Authority that could adjust tax levels to manage inflation.
- What would superintelligence look and feel like?
Deutsche Bank Research says superintelligent AI could outperform human experts across nearly every cognitive task by 2030, reshaping business competition and the global economy. Analysts Adrian Cox and Azeem Azhar describe a scenario of recursive self-improvement, in which advanced models run directly on smartphones, tablets and laptops and sharply cut the cost of software development, research, legal work and engineering. AI costs have nearly halved every quarter over the past three years at comparable performance, a roughly thirteenfold annual decline. The analysts warn that physical infrastructure, regulation and organisational resistance could slow adoption, and that Alphabet, Amazon, Meta, Microsoft and Oracle are expected to spend nearly $800 billion on capex in 2026, potentially above $1 trillion a year through 2030.
- Some companies give AI to everyone. This CEO is doing the opposite
Paysend, a London-based payments technology company, gives AI tools only to its highest-performing employees, often after they have proven what they can do with them. CEO Ben Chisell says AI lets the company deliver about 25% more engineering work with the same-sized team, but warns it can magnify bad habits such as laziness. Many firms are instead rolling AI out companywide: Lloyds Banking Group has issued 40,000 Microsoft 365 Copilot licenses, yet UK government research found that 77% of businesses using AI said revenue had not changed. At CoreView, CEO Simon Azzopardi says work that once took weeks can now take days, and the company is hiring rather than cutting staff. Chisell argues companies should help employees move into new roles rather than replace them once their work is automated.
- Fed Chair Warsh Says AI Could Boost US Economic Productivity
Federal Reserve Chair Kevin Warsh said AI could significantly boost US productivity over the medium term, although the transition may create uncertainty for businesses, workers and policymakers. Speaking at an IMF forum during the annual meetings in Bangkok, he said AI investment is currently boosting demand, while its longer-term benefits should strengthen supply and bring a positive supply shock. He warned that widespread adoption could disrupt jobs and competition, and reaffirmed the Fed's commitment to restoring price stability after withdrawing some policy accommodation in September. Warsh declined to guide on future rates, saying 'I don't prejudge meetings,' and the Fed is expanding its study of AI through task forces, with the first field hearing set for November 16 in the San Francisco Bay Area.
- Vietnam's economy stays stable and positive amid an unpredictable global backdrop
Finance Minister Ngô Văn Tuấn told the regular Government meeting that Vietnam's macroeconomy remains stable and socio-economic conditions continued to improve in October, even as global conditions stay volatile, notably the Middle East conflict that pushed world oil prices up 3-4.2% in October from September. The IMF raised its 2026 growth forecast for Vietnam from 7.1% to 8.4%, and R&I included Vietnam in its investment-grade category for the first time. Industrial production rose 12.4% over 10 months, and exports reached US$499.24 billion (up 27.5%), with total trade over US$1,010 billion, passing US$1,000 billion for the first time. Registered FDI reached US$54.85 billion, up 74%. The report also flags difficulties, including no breakthrough in production and business activity, and pressure on financial, monetary and credit markets.
- Vietnam's GDP could grow up to 11%, public debt among the lowest in the world
Standard Chartered, in a report published on 30/10, kept its Vietnam GDP growth forecasts at 9.5% for 2026 and 11% for 2027, and raised its 2028 forecast from 6.7% to 9.1%. The bank cites fiscal and monetary policy, strong FDI inflows, and rising domestic consumption and investment as support. It raised its inflation forecasts for 2026 from 4.4% to 4.7% and for 2027 from 3.3% to 3.9%, and cut its 2028 forecast from 5.5% to 3.7%. Its estimate for foreign exchange reserves is about US$83 billion. The article also cites IMF's October 2026 WEO forecasts of 8.4% GDP growth for 2026 and 7.5% for 2027, and a public debt ratio of 28.3% of GDP for 2026, placing Vietnam among the 20 economies with the lowest public debt worldwide.
Related markets
Latest news
- US again turns to NATO allies to fund weapons for Ukraine
According to reliable sources, the US may ask NATO allies to provide additional funding this month through the PURL program to cover a shortfall of about $2 billion for approved weapons packages for Ukraine. The US continues to deliver weapons even though allies have not yet made payments, and the shortfall could worsen if deliveries increase. The move comes as allies grow increasingly reluctant to spend more amid tensions between President Trump and Volodymyr Zelensky, and as European countries hesitate to fund a conflict approaching its fifth year. Separately, the US State Department recently approved a $2.1 billion sale of Patriot missiles to Ukraine, to be funded by Canada, Germany, Norway and the European Union. The Pentagon and the State Department did not respond to requests for comment.
- What Ashland (ASH) Said on Its Q4 Earnings Call
Ashland's fiscal fourth-quarter sales rose 4% to $498 million and adjusted EBITDA increased 2% to $121 million, driven by higher volumes and pricing, though weaker productivity in Specialty Additives partly offset the gains. Life Sciences and Personal Care sales rose 4% and 8%, with adjusted EBITDA margins of 35.6% and 30.1%. Specialty Additives EBITDA fell to $20 million due to lower output at the Hopewell facility. For fiscal 2027, Ashland expects sales of $1.905 billion to $1.975 billion and adjusted EBITDA of $405 million to $435 million, including foreign-exchange headwinds and capital spending of up to about $140 million. Management expects improving Hopewell output to support earnings.
- Anthropic Is 'Betting Its Entire Existence On Optimism': Michael Burry Flags Risks After AI Firm's Updated S-1, Says Won't Pursue IPO Shares
Michael Burry says Anthropic would need 'supernormal' growth to meet its contractual commitments, and he will not seek an allocation in the upcoming IPO. By his calculation, total commitments are $1.05 trillion to $1.07 trillion, above the disclosed $895.4 billion, because the figure excludes contracts tied to AMD, Google and SpaceX. To cover projected payments of $101 billion in 2027, $112 billion in 2028 and $127 billion in 2029, the company would need 11.6% sequential monthly revenue growth through 2027. Q3 sales rose 47% sequentially, slowing from 144% in Q2 and 132% in Q1. He also notes that the $120.5 billion SpaceXAI contract is outside the S-1 obligation tables, so near-term spending over 12 months could exceed $100.8 billion rather than the reported $69.8 billion.
- Why Rocket Lab Stock Plunged 15% in October and Why Its Decline Might Be Short-Lived
Rocket Lab shares fell 21.5% in October, according to S&P Global Market Intelligence, while the S&P 500 dipped 0.9%. The decline followed an Oct. 14 announcement that the inaugural launch of the partially reusable Neutron rocket, scheduled for later this year, was pushed into 2027 after a manufacturing issue created voids between carbon fiber layers in the propellant dome. The company said the issue has been corrected and a dome made with a different process has passed inspection, and on Oct. 28 it said Neutron's Stage 2 and Thrust Modules had arrived at the Virginia launch complex. The article notes the timing of the first flight remains uncertain, as the original 2024 target had been pushed back several times. Rocket Lab also plans to acquire Iridium Communications and recently announced its 99th successful Electron launch.
- Vietnam adds 2.5 million securities accounts since the start of the year
As of the end of October 2026, individual investors held more than 14.3 million securities accounts, equal to over 14% of the population. In October, domestic accounts rose by more than 252,000, 7,000 more than the previous month, mainly from individuals, while institutions added only 185; year to date, domestic accounts have grown by more than 2.5 million. Amid strong volatility, VN-Index briefly fell below 1,680 before closing the month above 1,740, down 1.5%. Foreign investors net sold more than VND 24,000 billion on HoSE in October, bringing year-to-date net selling to VND 122,000 billion, close to last year's record, and extending net selling to 10 consecutive months despite Vietnam's upgrade to emerging market status. Foreign investor accounts rose by 191 in October, to a total of 53,088.
- Update on billion-dollar FTSE fund flows into 27 Vietnamese stocks: A key milestone is approaching
Mirae Asset estimates passive inflows from FTSE index-tracking funds into Vietnam could reach about $2,098.5 million once allocations are complete, with FTSE Global All Cap funds contributing nearly $1.19 billion. The December 2026 quarterly review is expected to leave the 27 Vietnamese stocks unchanged, with changes mainly from weight adjustments. The March and June 2027 tranches could together correspond to about $1.15 billion within a four-stage schedule ending in September 2027, which Mirae Asset considers more notable. VIC of Vingroup is projected to receive the most, $655 million (over 31% of the total), about 3.6 times the $181 million expected for VHM. Share price movements through March 2027 could materially change the size and composition of these flows.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.