A new Reuters analysis suggests what many foreign observers have been emphasizing in recent months: Vietnam needs a second economic revolution to complete the transition to a market economy that it started a generation ago.
That article makes it clear that won’t be easy because of the power of state-owned companies, private conglomerates, government entities and others that are happy with the status quo despite Vietnam’s stalled economy.
Even so, senior government officials see Vietnam at a crossroads and moving decisively toward reform in three areas: restructuring and consolidating the banking system, controlling public spending and dealing with inefficient state-owned corporations that need to be privatized.
Time will tell whether Vietnam’s homeostatic forces will prevent the meaningful reform needed for the country to realize its economic potential.
More on economic reform in Vietnam