The Vietnam Economy: The Doi Moi Crisis In Vietnam

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Since the French Colonial Empire and the thirty-year conflict with US had led to severe downfall of Vietnam economic. However, forty years later Vietnam economic has developed progressively, and has been constantly recognized by the South East Asian Countries as a Major Economic Power. After the unification of Vietnam, they concentrated on their economic growth more than any other issues. Instead of improving, economic of Vietnam exacerbated. The turning point of the problem was the Doi Moi Revolution in 1986 which drove Vietnam from centrally planned economy towards economic liberalization i.e. Market oriented economy. Subsequently, Doi moi plan came in use making the economic to raise miraculously transforming from the poorest country in…show more content…
The outcome was dramatically declined in Vietnam economy, which increased poverty in most cities. Worsen by conflicts with Cambodia in 1978 and China in 1979, the economic crippled rather than recovered. This period of Sovietisation brought even further problems to the Vietnam economy and the virtual decade of stagnation only began to end in 1986 with the introduction of "Doi Moi".(Bui That Thang, (2001). In 1986, the country was transformed into lower middle income status within twenty five years by a political and economic reform, with average income approximately US $100 to US $2,100 by the end of 2015. Vietnam’s per capita GDP has increased from 5.5 percent to 6.4 percent since 1990 to 2000s. In 2015, the economy raised by estimated GDP growth rate of 6.7. According to Vietnam’s higher GDP growth, it improves higher income rate, education and life expectancy. Vietnam Socio-Economic Development Strategy (SEDS) for 2011-2020 emphasizes on developing the nation’s economy, maintaining its position in the global stage as well as conserving the environment. However, as analyzed, there are three challenges found in the strategy which Vietnam could be facing in this decade including the contrast of policies, the limitation of the national budget, and the conditions of its…show more content…
Although their policies are contrasting, there is a gradual development in the economy which could build a fundamental needs, such as infrastructure and adequate educational system, for being industrialized country. Since Vietnam’s economy is an emerging-market, it is relatively easy to build a stable and organized economic system which could reduce uncertainty and huge fluctuations. Meanwhile, the government could cultivate a younger generation to understand the importance of the environment, and the reason why Vietnam needs to switch to a low-carbon economy, which is crucial because protecting the environment will raise the standard of living in a country and reduce the chance of being affected by climate change and natural disasters. Although there are some challenges in Vietnam’s economic strategies, the government could achieve their objective by gradually developing from a local community to national community so as to promote what the country is leading to, and reduce misunderstanding between the government and

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