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Vietnam is a densely populated developing country that has been transitioning since from the rigidities of a centrally planned, highly agrarian economy to a more industrial and market based economy, and it has raised incomes substantially. Vietnam exceeded its GDP growth target of 6. Vietnam has a young population, stable political system, commitment to sustainable growth, relatively low inflation, stable currency, strong FDI inflows, and strong manufacturing sector.
In addition, the country is committed to continuing its global economic integration. In , Vietnam successfully chaired the Asia-Pacific Economic Cooperation APEC Conference with its key priorities including inclusive growth, innovation, strengthening small and medium enterprises, food security, and climate change.
Seeking to diversify its opportunities, Vietnam also signed the Comprehensive and Progressive Agreement for the Transpacific Partnership in and continued to pursue the Regional Comprehensive Economic Partnership. In , Vietnam cancelled its civilian nuclear energy development program, citing public concerns about safety and the high cost of the program; it faces growing pressure on energy infrastructure. Vietnam has demonstrated a commitment to sustainable growth over the last several years, but despite the recent speed-up in economic growth the government remains cautious about the risk of external shocks.
The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in Nevertheless, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving, road system, and limited external and internal land-line telecommunications.
Recently, the country has faced a persistent current account deficit, falling foreign currency reserves, and growing public debt. Laos' economy is heavily dependent on capital-intensive natural resource exports. The economy has benefited from high-profile foreign direct investment in hydropower dams along the Mekong River, copper and gold mining, logging, and construction, although some projects in these industries have drawn criticism for their environmental impacts.