Vietnam’s Economy: Poverty and Prospects
Wednesday, December 1, 1999
Amy Mowl | Pham Phung | Darcelle Pruitt | Ananda Mahto
China/Vietnam | Study Abroad 1999
Foreword
In the 25 years since the American government withdrew financial and military support from the former South Vietnamese State the unified government of Vietnam has worked to recover from the destructive impacts of the war. In 1975 the Vietnamese government inherited a country on the verge of economic collapse. Through the progressive steps of central planning, agricultural reform, state owned enterprises, the economic restructuring of doi moi, and the steps taken toward opening up to global trade, Vietnam has sought a path to provide stability for its people. Through a stable national policy, Vietnam hopes to create a harmonious national environment, equity within society, ensure social welfare, alleviate poverty, and balance citizen’s rights with their responsibilities.
In this paper we will address Vietnam’s economy after the war, the restructuring of the economy under doi moi, foreign policy implications, and the successes and failures of the Vietnamese government and foreign aid donors in achieving domestic policy goals. In section one we will discuss in detail the situation after the war, the initial economic plans, and the beginning steps toward decentralized economic planning. In section two we will introduce Doi Moi, discuss Vietnam’s hesitance to enter the free market economy, and look at some achievements of Doi Moi. Section three will address Vietnam’s foreign economic policy, the benefits of foreign investment in Vietnam , the drawbacks for foreign investors, Vietnam’s trade imbalance, and the U.S. economic embargo. In section four we will examine Vietnam’s domestic policy priorities using the education and health care systems to analyze the implementation of domestic policies, examine the overall effect Doi Moi has had in attaining public goals, and look at foreign aid donors as participants in reaching domestic policy goals. Finally, in section five we will summarize our findings and make policy recommendations intended to further the economic and social development goals of Vietnam.