Fourth revolution

Since the Doi Moi reforms in the mid-1980s, Viet Nam has been ranking as one of the world’s most dynamic market economies. The country’s GDP has grown at an impressive 7% on average over the last 15 years.Yet growth has begun to slow, and the so-called “fourth industrial revolution” is forcing economists to confront structural weaknesses in the economy. The first industrial revolution brought us steam engines and manufacturing. The second was powered by electricity. The third revolution was digital. The fourth will see disruptive technologies further transform factory processes and global supply chains. What will it take to shore up Viet Nam’s economic transformation? The answer is as simple to articulate as it is complex to execute: Viet Nam needs a more dynamic and innovative private sector fueled by home-grown entrepreneurship. Foreign direct investment in manufacturing can continue to be a valuable source of jobs and investment in short term. —