Vietnam integrating with the regional economy: a dynamic simulation analysis

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  • Vietnam Integrating with the Regional Economy : A Dynamic Similation Analysis

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説明

Through liberalization of trade and investment regimes conducted over the last two decades, Vietnam has developed profound trade and investment relations with East Asian countries. Vietnam’s integration with the regional economy has been recently accelerated with its participation into several regional FTAs. This paper attempts to give an overview of the ongoing regional integration and conducts a dynamic simulation analysis based on a global CGE model to quantify the impacts of regional economic integration on Vietnam’s economy. The main conclusion is that regional economic integration generally has positive impacts on Vietnam’s economic growth and industrialization, but these positive impacts are in large part brought about by the greater capital inflows. The realization of the potential benefits of regional integration would depend on the capability of Vietnam to attract foreign investment through the liberalization of investment regimes and improvements in infrastructures and human resources.

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