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Economic Setting::VietnamReported by:Marvin Bonete(Crim. 2-B, Group 10)

Economic Setting: VietnamDuringthecenturiesof Chinese and Vietnamese imperial rule, Vietnams society was predominantly agrarian. Its major source of wealth was rice. Although some manufacturing and trade existed, they received

Economic Setting: Vietnam little official encouragement and occupied minor segments of the gross domestic product (GDP). Under French colonial rule, agriculture continued to occupy the primary place in the national economy, although emphasis

Economic Setting: Vietnam shifted to the cultivation of export crops. In addition to rice, these crops included coffee, tea, rubber, and other tropical products. Small industrial and commercial sectors developed, notably in the major cities, but

Economic Setting: Vietnam their growth was limited because colonial officials were determined to avoid competition with goods produced in France.

Economic Setting: Vietnam Afterpartitionin1954 the governments of North and South Vietnam sought to develop their national economies, although they established different economic systems with different resources and trading partners.

Economic Setting: Vietnam The North operated under a highly centralized, planned economy, whereas the South mostly maintained a free-market system that had some government involvement. After reunification in 1976 the North

Economic Setting: Vietnam gradually extended its centrally planned economy throughout the country. In 1986, however, the government launched a reform program to move toward a mixed economy that operates under private as well as

Economic Setting: Vietnam collective or state control. As a result, Vietnam entered a period of rapid development. By 2006 GDP had risen to $61 billion, increasing at an annual rate of 8.2 percent in the 1990s.

Economic Setting: Vietnam InVietnam,asinother states ruled by Communist parties, the government is expected to play a guiding role in all matters, including the national economy. Classical Marxist economic theory calls for all major

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Economic Setting: Vietnam industries and utilities to be nationalized and for farmland to be placed under state or collective ownership.

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Economic Setting: Vietnam Suchwasthesituation in North Vietnam during the Vietnam War and initially in the reunified country established in 1976. However, Vietnams economy performed disastrously in the first decade after the war. 12

Economic Setting: Vietnam Excessive government controls, lack of managerial experience, limited capital resources, and the absence of a profit incentive all contributed to the weak economy. In 1986 the government launched a reform

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Economic Setting: Vietnam program called doi moi (economic renovation) to reduce government interference in the economy and develop a market-based approach to increase national productivity.

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Economic Setting: Vietnam Theneedforeconomic reform gained urgency in 1990, when poor harvests and economic mismanagement left millions of Vietnamese facing malnutrition. However, Vietnamese leaders initially encountered many

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Economic Setting: Vietnam difficulties in their effort to renovate the system. Among those obstacles was the reluctance of party leaders to further privatize the economy as well as a high level of bureaucratic interference in economic affairs.

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Economic Setting: Vietnam Thepaceofeconomicreforms accelerated following the Communist partys approval in 2001 of a ten-year development strategy enhancing the role of the private sector. The strategy simultaneously affirmed the

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Economic Setting: Vietnam primacy of the state in driving economic development, and Vietnams economy came to be characterized as a market economy with socialist orientation.

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Economic Setting: Vietnam Intheseconddecadeof the doi moi reforms, Vietnam achieved one of the fastest-growing economies in the world. Annual growth rates exceeding 7 percent ranked Vietnam second only to China. The countrys economic

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Economic Setting: Vietnam vitality attracted surging levels of foreign investment and significantly decreased the number of Vietnamese living in poverty. However, Vietnam lagged behind in modernizing its infrastructure, a crucial step in

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Economic Setting: Vietnam making Vietnamese businesses competitive against foreign competition.

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Economic Setting: Vietnam Vietnamsoughttoincrease foreign trade and investment through membership in the World Trade Organization (WTO). Following more than a decade of negotiations, Vietnams entry was formally approved in

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Economic Setting: Vietnam November 2006, paving the way for the country to become the organizations 150th member in December.

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Economic Setting: Vietnam Theofficiallabororganization in North Vietnam is the Vietnam General Confederation of Trade Unions, founded in Hanoi in 1946. After the country was reunified, the organization absorbed the South Vietnam

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Economic Setting: Vietnam Trade Union Federation. The confederation is an umbrella organization overseeing the activity of specialized labor unions in Vietnam, such as the National Union of Building Workers. By the mid-1990s the

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Economic Setting: Vietnam confederation contained more than 50 labor unions with a total membership of more than 4 million. As in all Communist systems, the labor movement in Vietnam is under strict party supervision. Labor unrest,

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Economic Setting: Vietnam Vietnamsnationalmonetary unit is the new dng, which is divided into 100 xu (15,994 new dng equal U.S.$1; 2006 average). Until 1990 the only banking system within the country was The State Bank of

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Economic Setting: Vietnam Vietnam, with its headquarters in Hanoi. In 1990 the government established four independent commercial banks (for foreign trade, investment and construction, agricultural development, and industry and

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Economic Setting: Vietnam commerce) and allowed foreign banks to operate. The State Bank continues to perform general supervisory functions; it also controls the money supply and credit policies. The Bank of Foreign Trade is authorized to handle foreign currencies.

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Economic Setting: Vietnam Source:Microsoft Encarta 2009. 1993-2008 Microsoft Corporation. All rights reserved.

Economic Setting: Vietnam Gam Uhn!!!

Economic Settingas weUnderstanding

Economic Communityforestablish an

Republic of the PhilippinesCAPIZ STATE UNIVERSITYDumarao Satellite College, Dumarao, Capiz ASEAN Integration 2015

Student SymposiumTheme: Understanding Better the Political, Economic & Socio-Cultural Setting of Southeast Asian Nations for Peace, Prosperity & People

March 09, 2015 (8:00-11:30 am)Campus Library36