Some current economic issues in Viet Nam

The paper examines three issues of particular importance in Viet Nam and, more generally, in a market transition economy: privatisation of state-owned enterprise (SOE), growing inequality and the threat of environmental damage in a country which is ecologically fragile. First, while Viet Nam has greatly reduced the number of SOES, the state's share in total output has not diminished. Moreover, the dividing line between state and private is blurred by SOE joint ventures with foreign investors. Secondly, the country's recent rapid economic growth, while lowering absolute inequality, will increase relative inequality; although Viet Nam has made progress in reducing poverty incidence and fostering balanced regional development, an unaddressed area is that of maintaining favourable terms of trade for agriculture. Thirdly, environment has become a particularly important issue because of industrial growth, urbanisation and the spillover effects these have had on rural areas; but is Viet Nam doing too little too late?. The paper includes a summary of recent macreconomic performance.