Vietnam at a crossroads: avoiding the middle-income trap while addressing climate challenges

Following three decades of strong growth (7% on average) which enabled the country to eradicate extreme poverty and reach middle-income status, Vietnam continues to offer highly attractive prospects. Socio-political stability, a cautious policy mix, continually high economic growth, and the size of the domestic market of 100 million inhabitants are all major assets. Vietnam also benefits from a limited public debt ratio. Finally, the economy will continue to build on its strong integration into international trade, where recent upheavals (reconfiguration of value chains related to the Covid-19 crisis and the US-China trade war) have largely benefited Vietnam.