Status of Transition from Socialism

Vietnam is a country whose economy is evolving. Its rapidly changing economy is facing significant alterations in the process of transition. Vietnam is moving away from its current economy, which is a non-market socialist one, towards a market economy with a socialist orientation. Vietnam is one of the poorest countries in the world with a Gross Domestic Product of only $300. High levels of population along with the proper training will allow Vietnam to effectively use its number one resource, people. Australia plays a key role in assisting Vietnam 's economic growth and development through their aid programs. Economic reforms are changing Vietnam from an agricultural rich economy to a service industry one. Throughout the years, agriculture, as a percent of Gross national product, has decreased from year to year, while service and industrial are increasing. This steady decline is because of the changing situation with its economy. With this decrease, migration to cities and towns is usually normal, but not in this case, as Vietnam has stayed primarily rural. The main agricultural cash crops in Vietnam are rice, coffee, cashews, corn potatoes rubber, soybean and tea. Clothing, computers and electronics are a growing part of the economy as well. Tourism is the largest industry in the service sector. In Vietnam land sales are not permitted. This is because of the communist rule, and the ownership of all land by the state. During the current economic reform to a market system of economy, household farms have replace the once popular collective farms. Land rights are guaranteed to the families for twenty years on farmland and fifty years for forestland. Though the farmers can still not own land they do have the right to use it, rent it, inherit it, and well as claim it as collateral. The changing economy has caused the industrial and service sectors to steadily expand. With this increase, many are being dominated by state owned industries.
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Bibliography: The United Stated Library of Congress (http://lcweb2.loc.gov/frd/cs/vntoc.html) Gardener, L.C. et al. (1997) Vietnam: The Early Decisions. Austin: university of Texan Press. Karnow, Stanley (1983). Vietnam A History. New York: Penguin Books. Long, Robert Emmet (1986). Vietnam: The Early Decisions. New York: Wilson.