Vietnam

Economy

Main article: Economy of Vietnam

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 1986, the Sixth Party Congress of the Communist Party of Vietnam formally abandoned Marxist economic planning and began introducing market elements as part of a broad economic reform package called "doi moi" ("Renovation").

Related Topics:
Communist Party of Vietnam - Marxist - Economic planning - Market - Economic reform - Doi moi

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In many ways, this followed the Chinese model and achieved similar results. On the one hand, Vietnam achieved around 8% annual GDP growth from 1990 to 1997 and continued at around 7% from 2000 to 2002, making it the world's second-fastest growing economy. Simultaneously, investment grew three-fold and domestic savings quintupled.

Related Topics:
The Chinese model - GDP - 1990 - 1997 - 2000 - 2002 - Investment - Domestic savings

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

On the other hand, urban unemployment has been rising steadily in recent years due to high numbers of migration from the countryside to the cities, and rural unemployment, estimated to be up to 35% during nonharvest periods, is already at critical levels. Layoffs in the state sector and foreign-invested enterprises combined with the lasting effects of a previous military demobilization further exacerbated the unemployment situation. The country is attempting to become a member of the WTO. Vietnam, however, is still a relatively poor country with GDP of US$227.2 billion (est., 2004). This translates to US$2700 per capita. Inflation rate is estimated at 14% per year in 2004. This figure has been scaled down by the Government to 9.5% per annum to avoid the ‘double digit’ classification.

Related Topics:
Unemployment - Military

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The spending power of the public has noticeably increased. The reason lies in the high property prices. In Hanoi, the capital, property prices can be as high as those in Tokyo or New York. This has amazed many people because GDP per capita of this city is around US$1,000 per annum. The booming prices have helped people with a little piece of land or a tiny apartment, by selling them, realise their dreams despite their low monthly income. Corruption, bribery and embezzlement committed by many government officials have pushed property prices even higher, as real estate investment is a popular form of money laundering.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~