Article Sidebar

PDF
Date Published: 25/10/2024
Abstract Views: 60
Views PDF: 32
Issue
INTERNATIONAL SCIENTIFIC CONFERENCE CHALLENGES OF VIET NAM: TOWARDS A HIGH-INCOME COUNTRY BY 2045
Section
CONFERENCE
How to Cite
Trần, V. T. (2024). On the Issues of Changes in Growth Models: Policy for Avoiding the Middle-Income Trap. Dong A University Journal of Science. https://js.donga.edu.vn/index.php/daujs/article/view/371

On the Issues of Changes in Growth Models: Policy for Avoiding the Middle-Income Trap

Trần Văn Thọ

Main Article Content

Abstract

Discusses the concept of the middle-income trap (MIT) and its implications for Vietnam. The MIT refers to countries that reach a certain level of per capita income but struggle to progress further. Vietnam xxviii entered the lower-middle-income category in 2008, with a GNI per capita of US$3,560 in 2021. The discussion highlights the importance of transitioning from input-driven growth to total factor productivity (TFP)-led growth and the role of institutional reforms in sustaining growth. The Lewis turning point is also mentioned, emphasizing the need for increased productivity to match higher wages. To escape the MIT and achieve long-term growth, Vietnam must focus on policies that promote industrialization, support SMEs, improve factor markets, enhance education and training, and invest in research and development (R&D).


Article Details

Author Biography

Trần Văn Thọ

Emeritus Professor at Waseda University, Japan

Tran Van Tho received his Ph.D in Economics from Hitotsubashi University (Tokyo). He is currently Professor Emeritus of Waseda University (Tokyo). He was a member in the Advisory Group on Economic and Administrative Reforms of Vietnamese Prime Minister Vo Van Kiet (1993-1997) and a member in the Economic Consulting Group of Prime Minister Nguyen Xuan Phuc (2016-2021). His publications include Industrial Development and Multinational Corporations: The Dynamics of Asian Pacific Region, (1992, in Japanese, the book received the Asia Pacific Prize in 1993), Dynamics of East Asian Economies and the Path of Vietnam’s Industrialization (2005, in Vietnamese), Time Shock and Vietnam’s Economy (2016, in Vietnamese), The Middle Income Trap and the Economies of China and ASEAN (co-author, 2019, in Japanese), The Miraculous Growth Era of the Japanese Economy 1955-1973 (2022, in Vietnamese). All three books written in Vietnamese cited above have received Prize of Best Economic Books in Vietnam.