It's the Infrastructure Stupid: Vietnam's Key to Economic Prosperity
Abstract
The Vietnamese government has made great strides economically since adopting reform measures through Doi Moi transformation policies in 1986. The economy has moved from a primarily state owned enterprise to a more open market economy. In 1995, Vietnam initiated its request for membership in the World Trade Organization achieving this status in 2007. These bold steps have opened up trade options and allowed the developing country to experience tremendous growth in its gross domestic product. In order to keep pace with this economic progress, Vietnam will have to invest heavily in its infrastructure. This research paper argues that if Vietnam invests in its transport infrastructure, it will bolster its primary export sector of agriculture and other areas of its economy. The existing railway, road, and port infrastructures are in poor condition, absent, or require significant modernization to meet existing and future demands. Most infrastructure development projects within Vietnam are supported by foreign investments and therefore should be continued. In so doing, employment will increase and spur microeconomic growth with macroeconomic effects. Finally, infrastructure capacity will increase and entice further foreign investors allowing the country to pursue its goal of being an industrialized country. Vietnam must invest in its infrastructure to realize continued economic growth.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 2013
- Accession Number
- ADA594021
Entities
People
- Kenyon K. Bell
Organizations
- Naval War College