Vietnam’s transition to a market economy has transformed the country and the lives of its people. In 1986, Vietnam launched Doi Moi, a homegrown, political and economic renewal campaign that marked the beginning of its transition from a centrally planned economy to a socialist-oriented market economy. At that time, Vietnam was one of the poorest countries in the world, and with many problems: hyperinflation, famine, drastic cuts in Soviet aid, and a trade embargo by the west.
The rest of the report is organized as follows. The rest of chapter one discusses the factors that have contributed to Vietnam’s success and explores the emerging challenges. Chapter two explores the issue of restructuring state-owned enterprises (SOEs). Chapter three examines the challenges of the public investment program and how to raise its effectiveness. Chapter four discusses the low level of transparency to support Vietnam’s middle income status, a critical issue that needs to be tackled if Vietnam is to achieve its socioeconomic aspirations.