InVietnam will integrates comprehensively and intensively into the global economy, meaning that its economy, especially enterprises, will face many difficulties.
The economy remained dominated by small-scale production, low labor productivityunemploymentmaterial and technological shortfalls, and insufficient food and consumer goods.
Efforts were also made to decentralize planning and improve the managerial skills of government officials.
Vietnam is one of the few countries in modern history to experience a sharp economic deterioration in a postwar reconstruction period. Its peacetime economy was one of the poorest in the world and had shown a negative to very slow growth in total national output as well as in agricultural and industrial production.
Reasons for this mediocre economic performance have included severe climatic conditions that afflicted agricultural crops, bureaucratic mismanagement, elimination of private ownership, extinction of entrepreneurial classes in the South, and military occupation of Cambodia which resulted in a cutoff of much-needed international aid for reconstruction.
Following the dissolution of the Comecon and the loss of its traditional trading partners, Vietnam was forced to liberalize trade, devalue its exchange rate to increase exports, and embark on a policy of economic development.
Furthermore, the Vietnam government stressed the necessity to lower birth rates when developing the economic and social rights of the population by implementing a policy that restricted the number of children per household to two, called the two-child policy.
Vietnam's economic policy following the Asian Financial Crisis has been a cautious one, emphasizing macroeconomic stability rather than growth. While the country shifted toward a more market-oriented economy, the Vietnamese government still continues to hold a tight reign over major state sectorssuch as the banking system, state-owned enterprises and foreign trade.
It was expected that access to the U. Furthermore, it would attract foreign investment, not only from the U. Inthe ruling Communist Party of Vietnam approved a year economic plan that enhanced the role of the private sector, while reaffirming the primacy of the state.
At the same time, investment grew threefold and domestic savings quintupled. Inthe private sector accounted for more than one-quarter of all industrial output. The GDP growth was 8. The government estimated that GDP grew in by 8. On January 11,Vietnam officially became the WTO's th member, after 11 years of preparation, including eight years of negotiation.
However, the WTO accession also brought serious challenges, requiring the economy to open up to increasing foreign competition. The recent reforms have created a major boom in the Vietnamese stock market as confidence in the Vietnamese economy is returning.
Over the last 2 decades, Vietnam has experienced a rapid construction booming that contributed to economic growth but also caused "bubble" to the economy. Skyscrapers ballooned in big cities.
Vietnam's current economic turmoil has given rise to question of a new period of changing political economy, however. Vietnam has been privatizing many of its state-owned operations to reduce corruption and increase efficiency.Yet these challenges only throw a few shades on the otherwise positive financial and economic outlook of Vietnam for the long-run.
Furthermore, the growing involvement of Vietnam in international trade bodies, such as the World Trade Organization, or multilateral agreements, such as the TPP, pushes the government to take care of these challenges.
Nov 16, · These are some of the major challenges of the Vietnam economy at present. 3. Challenges of the low middle-income trap. Per capita income of Vietnam surpassed $1, in (currently about $2,) so Vietnam has become a low middle-income country according to the standards of the World Bank (WB).
Vietnam's economic development: Opportunities and challenges towards the integration tendency Prof.,Dr. Nguyen Thi Ngoc Huyen and Prof.,Dr. Bui Anh Tuan National Economics University, Hanoi, Vietnam Abstract Thanks to the comprehensive economic reform, the transformation from a centrally planned economy into a market economy and the.
EDUCATION IN VIETNAM DEVELOPMENT HISTORY, CHALLENGES AND SOLUTIONS Introduction economic development: over 90% of the working-age population is literate; more than 98% of children of primary school age attend schools; and the enrollment rates for boys and girls.
Vietnam is an emerging market economy with 90 million people and exhibits many relevant properties of a transition system. It allows for examination of values and modus operandi of and some basic conditions for entrepreneurship and creativity that could serve the business sector and positive economic reforms.
In fact Vietnam runs a very similar economic model to its large northern neighbor, China. Widely seen as an alternative to China for foreign firms wishing to take advantage of cheaper production costs, the country is now suffering some of the same problems confronting Beijing.