Growing productivity gap in Vietnam threatens economic development and middle-income status.
Vietnam has seen economic growth, but is at risk of getting stuck in a middle-income trap. This study looked at how efficiently provinces in Vietnam are using their resources to produce goods and services. They found that overall productivity has been increasing, mainly due to technical progress. However, the efficiency of resource allocation has not improved much, leading to a growing gap between provinces. This could have negative effects on the country's future economic development.