Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization and a more open economy.
The Vietnamese authorities have been oscillating between promoting growth and emphasizing macroeconomic stability in recent years. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year.
Vietnam is trying to reform its economy by restructuring public investment, state-owned enterprises, and the banking sector, although Hanoi’s progress in meeting its goals is lagging behind the proposed schedule. Vietnam’s economy continues to face challenges from an undercapitalized banking sector and nonperforming loans.