Since Viet Nam initiated its Doi Moi Policy of economic reform in 1986, it has made considerable progress in modernising its economy and has produced impressive growth and poverty reduction. However, growth has slowed in the last five years. Continuing economic development will require increasingly sophisticated labour skills to allow industry to shift toward higher productivity and technology intensive activities. Viet Nam urgently needs to improve schooling and technical and vocational education and training (TVET) if it is to rectify the mismatch between skills supply and demand.

Viet Nam needs to foster an equitable, stable business environment and to ensure a level playing field for non-state versus state enterprises. Only then will it be able to fully harness the essential and growing economic contributions of Viet Nam’s SMEs. Viet Nam also urgently needs to reform its monetary policy framework so that monetary policy can more effectively sustain macroeconomic stability. In the medium and long term, the monetary policy framework needs to be focused on controlling inflation and reducing macroeconomic fluctuations.

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