Cambodia-Laos-Vietnam : Economic Reforms and Sub-regional Integration

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This paper reviews the gradual transitions and progress of economic reforms and transformations in Cambodia, Laos, and Vietnam (CLV) since the late 1980s and the subregional cooperation and economic integration among the three countries in promoting economic development and poverty reduction especially along the border areas under the development triangle initiative. Liberal market economy in Cambodia, socialist-oriented market economy in Laos and Vietnam, and global and regional economic integration stay the mainstream of the political economy of development of CLV countries. State is the main actor in facilitating economic growth while the market is the driving force. With relatively high economic growth rate driven by trade openness and the inward flow of foreign direct investments, CLV countries are emerging to be an integral part of the regional economic dynamism of ASEAN and the Asia-Pacific region. However, the remaining challenges need to be tackled are institutional capacity, good governance, and labor productivity.

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