Rajat Nag Managing Director General of the Asian Development Bank (ADB) has described the “middle income trap” as one of challenges for Vietnam as it gains the middle income country status and at the same time said he believes in its ability to avoid the trap.
“I think all middle income countries are susceptible to the middle income trap. Vietnam of course will not be an exception. But we believe that Vietnam wil get out of the middle income trap. It should take urgent measures right now,” he said.
Vietnam has recognised this problem and the government has adopted its socio-economic development plan for the next decade since January this year, he said, adding that there are three challenges in adopting this plan, namely reform of State-owned enterprises, improvement of the quality of human capacity and meeting infrastructure challenges.