Vietnam will need to grow annually by at least 7% to become an upper-middle-income economy by 2035, World Bank
(WB) Group President Jim Yong Kim said, citing the WB’s “Vietnam 2035” report.
“It is important to establish a more efficient and competitive private sector - this is the driving force behind job creation, innovation, and increased levels of productivity,” Mr. Kim stressed.
Vietnam’s private sector will thrive with fewer barriers to competition and more efficiently allocated capital and land resources. These steps will help the country take advantage of new trade opportunities presented by agreements like the Trans-Pacific Partnership, he added.
Another notable message of the report relates to governance, the head of the World Bank said.
“Vietnam will have a greater chance to achieve its goals for 2035 with comprehensive governance reform. […] These steps will depend on institutions that are accountable, transparent, and firmly rooted in the rule of law.”
At the launch of the report on Tuesday, Mr. Kim believed that Vietnam was capable of the middle-income trap if the government takes into consideration recommendations set forth in the report, which was jointly elaborated by the WB and the Vietnamese government.
The country should focus on enhancing competitiveness of domestic companies, develop key market institutions, protect the right to private ownership and implement competition policies, he said.
The government’s accountability and its citizens’ supervision are also important for Vietnam to overcome the middle-income trap.
The WB will continue to support Vietnam in diverse forms, including capital mobilization, transfer of knowledge and human resources training, Mr. Kim tipped.