Viet Nam seeks to become an industrialized country by 2020 by leveraging its improved competitiveness, productivity and efficiency after two decades of rapid economic expansion. This growth, however, is starting to slow down, as the country is drawn against limited skills level and low technological innovation.
Viet Nam, touted as one of Asia’s most remarkable development stories in the 1990s and 2000s, is showing symptoms of slipping into a low-productivity, low-value trap.
The country’s manufacturing activity expanded at its slowest pace in four months in July given a decline in the growth of output, new orders and employment, according to the seasonally adjusted purchasing managers’ index released on August 1.
With few skills, the vast majority of Vietnamese can only find menial jobs that offer low wages. About two-thirds of the country’s workers are employed in informal jobs.