Article metrics

  • citations in SCindeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[=>]
  • visits in previous 30 days:36
  • full-text downloads in 30 days:34
article: 1 from 3  
Back back to result list
Ekonomski horizonti
2016, vol. 18, iss. 1, pp. 33-52
article language: English
document type: Review Paper
published on: 06/05/2016
doi: 10.5937/ekonhor1601033T
Economic growth constraints in Vietnam: A study using the growth diagnostic approach
Vietnam Institute for Economic and Policy Research, Hanoi, Vietnam

e-mail: pham.vandai@vepr.org.vn

Abstract

Recent studies have clearly pointed out a decreasing trend of Vietnam's economic growth in the short and the medium terms. This paper presents a study applying the growth diagnostic method for Vietnam to determine growth constrains. The binding growth constrains of Vietnam are found to include a poor business environment; an underdeveloped infrastructure, especially the transportation network market; failures related to information externalities, learning externalities and coordination failures. Notably, the energy infrastructure could be a vital constraint in a near future, but is not a binding constraint at present. The inefficiency of financial intermediaries and the government's over-investment could become a binding constraint when the economy returns to its high growth path.

Keywords

References

Anh, P.T. (2014) Thâm hụt ngân sách, no công và rùi ro vĩ mô ở Việtnam (Fiscal deficit, public debt and macro risks in Vietnam). Vietnam Journal of Economics and Development, 199, 18-28
Bank, W. (2012) Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises. Washington: World Bank Publications
Binh, P.T. (2011) Energy consumption and economic growth in Vietnam: Threshold cointegration and causality analysis. International Journal of Energy Economics and Policy, 1(1); 1-17
Cuong, N.V. (2011) Estimation of the impact of rural roads on household welfare in Vietnam. Asia-Pacific Development Journal, 18(2); 105-135
Dai, P.V., Thanh, N.D. (2012) The efficiency and growth of Vietnam's economy. in: Thanh N.D. [ed.] Vietnam annual economic report facing the challenges of structural reforms, Hanoi, Vietnam: Global Publisher, pp. 115-153
Dinh, H.T. (2014) Light Manufacturing in Vietnam: Creating Jobs and Prosperity in a Middle-Income Economy. Washington: World Bank Publications
Dinh, H.T., Rawski, T.G., Zafar, A., Wang, L., Mavroeidi, E., Tong, X., Li, P. (2013) Tales From the Development Frontier: How China and Other Countries Harness Light Manufacturing to Create Jobs and Prosperity. Washington: World Bank Publications
Hausmann, R., Klinger, B., Wagner, R. (2008) Doing growth diagnostics in practice: A ‘mindbook'. in: Working Paper 177, Harvard University Center for International Development, September
Hausmann, R., Rodrik, D., Velasco, A. (2005) Growth diagnostics. in: Stiglite J., Serra N. [ed.] The Washington consensus reconsidered: Towards a new global governance, New York, NY: Oxford University Press
Kaufmann, D., Kraay, A., Mastruzzi, M. (2011) The Worldwide Governance Indicators: Methodology and Analytical Issues. Hague Journal on the Rule of Law, 3(02): 220-246
Minh, N.T. (2009) Dynamic demographics and economic growth in Vietnam. Journal of the Asia Pacific Economy, 14(4): 389-398
Ministry of Labor (2014) Invalids and social affairs: Update on the Vietnamese labor market. Vol. 2
Ministry of Transport (2014) Báo Cáo Kêt Quẚ Huy Động Nguὃn Vὄn Ngoài Ngân Sách Năm 2013, Kế Hoạch Giẚi Pháp Thục Hiện Năm 2014 và Kết Quẚ Áp Dụng Các Giẚi Pháp Đế Tiết Giẚm Chi Phí Đἂu Tu Của Các Dụ Án Tù Khi Thục Hiện Nghi Quyết Số 11/NQ-CP đến Tháng 12/2013 (Report on the out
Nguyen, T.T., van Dijk, M.A. (2012) Corruption, growth, and governance: Private vs. state-owned firms in Vietnam. Journal of Banking & Finance, 36(11): 2935-2948
Ohno, H., Thanh, L.H. (2015) Bằy Thu Nhâp Trung Binh tại Việt Nam: Thục Trạng và Giài Pháp (Middel income trap in Vietnam: Situation and solution). Nhüng Van Đ Kinh Te và Chính Tri The Giai, 3(227)
Rodrik, D. (2006) Goodbye Washington Consensus, Hello Washington Confusion: A Review of the World Bank's Economic Growth in the 1990s: Learning from a Decade of Reform. Journal of Economic Literature, 44(4): 973-987
Sarath, D., van Pham, D. (2015) The determinants of Vietnamese banks’ lending behavior. Journal of Economic Studies, 42(5): 861-877
Smith, P. (2014) Vietnam's choices of energy policy. in: Thanh N.D. [ed.] Vietnam annual economic report the constraints to growth, Hanoi, Vietnam: Global Publisher, 2014
Son, N.N., Chuong, P.H. (2011) Chất Luong Tăng Truỏng Kinh Tế Việt Nam Muỏi Hai Năm Nhîn Lại và Giẚi Pháp cho Tuong Lai (The quality of Viet Nam's economic growth in the last 10 years and solutions for the future). Hanoi, Vietnam: Transport Publishing House
Stiglite, J. (2003) Challenging the Washington consensus. Brown Journal of World Affairs, 9(2); 33-44
Thanh, N.C. (2011) Cùng Cố và Phát Triến Hệ Thống Các Tố Chúc Tín Dụng ỏ Việtnam trong Bối Cành Mói (Consolidate and develop Vietnam banking system in the new context). Tạp chí Ngân hang, State Bank of Vietnam, 8, 24-29
Tho, T.V. (2013) The middle-income trap: Issues for members of the association of Southeast Asian nations. in: Institute Working Paper 421, Asian Development Bank
V.I.D. Group (2014) Vietnam economic prospects: Overview of Q1 2014 and prospects of the following months. Hanoi, Vietnam
VCCI (2013) Provincial competitiveness index 2013
Viet capital securities (2014) Market data. May 24, 2014, https://www.vcsc.com.vn/Modules/Analysis/Web/IndustryAnalysis.aspx?tab=3&MenuID=5&inTab=Tongquan&cat=0&lang=en-us
Vietnam development forum (2011) Survey of the contexts, policy measures, and result of developing supporting industries in ASEAN. Transport Publishing House
Vietstock.vn (2014) Thấy gỉ tù hiện tuong ngân hàng giàm cho vay ngăn hạn?. May 24, 2014, http://vietstock.vn/2014/05/thay-gi-tu-hien-tuong-ngan-hang-giam-cho-vay-ngan-han-757-347558.htm
Viettrade (2013) Báo Cáo Xúc Tiến Xuất Khấu 2012-2013 (Export promotion report 2012-2013)
Williamson, J.G. (1990) What Washington means by policy reform. in: Williamson John [ed.] Latin American adjustment: How much has happened, Washington, DC: Institute for International Economics
World Bank Group (2013) Taking stock: An update on Viet Nam's recent economic developments. Washington, DC
World Economic Forum (2014) The global competitiveness report 2013-2014. Geneva