Mekong Economics was asked to produce a report for the EU Delegation to Vietnam on the ‘Middle-Income Trap’ and what it might mean for Vietnam and its attempts to reduce poverty and tackle inequalities. Adam McCarty, Tom Berliner and Do Kim Thanh conducted an extensive literature review. The team worked to investigate the existence of a so-called ‘middle-income trap’, looking at historical GDP growth figures across the world. They also conducted a detailed study of poverty data in Vietnam to show how inequality and poverty had increasingly become determined by ethnicity, with specific minorities being left behind in  Vietnam’s economic boom.