Viet Nam has some of the highest levels of public expenditure on infrastructure and services in Southeast Asia. Yet, higher government expenditure was not always directly associated with improved outcomes.
Investments to strengthen regional cooperation and integration (RCI) in the Greater Mekong Subregion (GMS) have helped catalyze economic growth among GMS countries. However, enhanced connectivity and the movement of people within and across borders created increased vulnerabilities for the transmission of infectious diseases, including HIV/AIDS.
Viet Nam enjoyed robust economic growth, averaging 7% per year, during 2000–2007; but the global financial crisis of 2008 exposed important gaps in its economic and institutional framework.
Several decades of preferential treatment, incentives, and subsidies failed to make the state-owned enterprises (SOEs) in Viet Nam competitive and efficient.
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