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Four years have now passed since Vietnam gained middle-income status and despite the outstanding achievement the country also feces enormous difficulties, including the danger of being caught in the so-called “middle-income trap”. It’s a topic that ignites heated debate among local and foreign economists and analysts alike. While the majority opinion is that Vietnam has not yet fellen into the trap, the risk is there and is real. According to Mr Vuong Dinh Hue, Head of the Party Central Committee’s Economic Commission, although Vietnam’s average growth has been around 6.5 to 7 per cent a year, the country could still fall into the middle-income trap, which would curb its economic competitiveness and hinder national development ...

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