A Report On The Macroeconomy Of Vietnam

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A Report on the Macroeconomy of Vietnam: Analysis and Policy Recommendations Nhan Ho - @00351167 Macroeconomic overview of Vietnam Vietnam has gone through a successful development process, known to be one of south east Asia’s fastest growing economy and could possibly become a developed nation by 2020 (BBC News, 2014). Vietnam was once one of the poorest countries in the world in 1986 with per capita income below $100. As of present, Vietnam has transformed into a lower middle income country with per capita income of $1,960 by 2013 (The World Bank, 2014). Vietnam’s GDP per capita have been rising every year as shown in Fig. 1. Fig. 1 Vietnam’s GDP Per Capita from years 2004 to 2014 (Trading Economics, 2014). Vietnam has also had success in reducing poverty, from nearly 60% of people living in poverty falling to 20.7% in 2010 and presently below 10% (The World Bank, 2014). One of the causes of poverty was due to the lack of education (limited access) which was corrected over the years; primary school enrolments for the poor have increased by more than 90% and secondary school enrolments increasing by 70%. Not only were there rising levels of education but also diversification in off-farm activities, though there are still problems such as external shocks, inequality and macro instability that still create new challenges for Vietnam (The World Bank, 2013). As seen in Fig. 2, there was a high unemployment rate in 2010 but it has continued to improve as
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