As a result, the government has recognised the need to develop new strategies to maintain growth as a low-middle income country with Official Development Aid or ODA set to fall in the next 5 years. So what measures should Vietnam implement to overcome these challenges?
Vietnam is a development success story. The Doi Moi political and economic renovation project launched in 1986 transformed the country from one of the poorest in the world, with per capita income around US $100, to lower-middle income status within a quarter of a century with per capita income of around US$2,100 by the end of 2015. GDP growth has averaged 6.6% per annum since 1986. Vietnam is thus among the fastest growing economies in the world but at the same time the nation is among countries receiving the most ODA in the world. With Vietnam now a lower-middle income country, the source of ODA is set to decline with fewer concessional loans offered by development banks. As a result Vietnam is expected to face many challenges in raising funds for development over the next 5 years.
