The quality of economic growth of Vietnam

Abstract

So far, research on the quality of economic growth is still limited. Most of the studies have illustrated that key determinants for the quality of economic growth include: i) Total factor productivity (TFP); ii) Efficiency of resource use; iii)Competitiveness; iv) Social welfare; and v) Environment and sustainable development.This study has found that the quality of economic growth of Vietnam is very low. The economic growth based on the quantity factors (labor and Non IT capital), account for 85%, while the TFP and IT capital occupy only 15%; labor productivity is low, around 6% as compared to that of Singapore; ICOR is high and increasing overtime; economic structure is slowly changing and competitiveness is low. The study suggests policy implications to improve the quality of Vietnam economic growth such as issues of public spending, state-owned economic sector and improving the efficiency of investment.