Vietnam wants to become another Asian tiger, betting on reforms

by Andrea
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Vietnam wants to become another Asian tiger. He is waiting for a challenging challenge. It must accelerate reforms, facing an aging population, climatic risks and duties of US President Donald Trump, who is putting pressure on the Asian country for its trade surplus with the US. However, this also reflects the stunning economic trajectory of Vietnam. TASR informs this on the basis of AP report.

The Communist Party chief LAM declared it the arrival of the “new era of development” at the end of last year. It signaled the beginning of what could be the most ambitious economic reform of Vietnam for decades.

The transformation of Vietnam into a global production center with new highways, skyscrapers and a prosperous middle class has pulled millions of its inhabitants out of poverty, similar to China.

The country is facing obstacles

But the growth of the low -cost export -oriented economy is slowing down and the country is facing obstacles to the introduction of reforms, from the expansion of the private industry to strengthening social protection and investing in technology and green energy. And also durics in the US, which are now the largest export market of Vietnam. Both countries have agreed on duties of 20 % on the import of Vietnam and twice the amount for goods suspected of transhipment or transport via Vietnam. Hanoi thus avoided duties of 46 %threatened by Trump.

Vietnam was preparing to change his economic policy before Trump’s duties threatened his model for the spectrum of cheap exports for the world. He took an example from China and built on high-tech sectors such as computer chips, artificial intelligence and renewable energy, providing companies with strategic tax relief and research support.

It also significantly invests in infrastructure, including nuclear power plants and the high -speed North -South Railway. He is also trying to become a global financial center. The government plans two special financial centers, in the busy Hočimin city and Danang’s seaside resort, with simplified rules for attracting foreign investors, tax relief, support for start -up financial technological businesses and easier ways to resolve commercial disputes.

Rely on private businesses

The basis of all this is institutional reform. Ministries are merged, low -level bureaucratic structures are canceled, and 63 Vietnamese provinces will be merged to 34 to build regional centers with more talents. Vietnam relies that private enterprises will lead its new economic impulse, which is a great shift over the past.

In May, the Communist Party approved a resolution in which private enterprises calls “the most important force” in the economy. Even megaprojects, such as a high -speed rail, once reserved for state giants, are now open to private offers.

Vietnam hopes to raise at least 20 private companies to a global level by 2030. However, some experts warn that they will encounter resistance to the Conservatives in the Communist Party and those who benefit from state -owned companies, which could brake reforms. They can also be stopped by climate threats that require urgent measures. In addition, Vietnam ages, which reduces productivity and burdens social services.

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