Economic reforms have altered Vietnam from one of the world's lowest income countries to a lower-middle-income country. However, since 2008, Vietnam has faced major challenges in restoring macroeconomic balances and sustaining high economic growth. Global integration has led to greater economic volatility, and Vietnam has become more susceptible to output fluctuations among its trading partners at a time when the latter are experiencing significant recession. Vietnamese authorities have responded by adopting a stimulus package, which has temporarily supported growth, but done little to restore long-term macro-stability. Light manufacturing has emerged as an important source of growth and productive employment in economies with a comparative advantage in labor-intensive sectors, as is the case in Vietnam, and thus presents great potential for improving the country's economy.