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Comments by Byung-Yeon Kim

Asian Economic Papers 13:1 © 2014 The Earth Institute at Columbia University and the Massachusetts Institute of Technology doi:10.1162/ASEP_a_00265 Byung-Yeon Kim: This article begins with the assessment of Vietnam’s economic growth during the reform period and attributes its success to abundant natural resources, favorable demographics, political stability and commitment to economic reform, and high human capital. It claims that the fundamental causes of the recently revealed economic weaknesses are institutional deaciencies, and argues that its long-run performance will be pessimistic unless such deaciencies are properly dealt with. The author classiaes the institutional constraints faced by Vietnam into three categories: economic ones (the lack of independence of the central bank and privilege given to the state-owned sector), administrative ones (a lack of capacity for effective public management), and political ones (the monopoly of political power by the Communist Party of Vietnam), and maintains that they are mutually reinforcing.