Vietnam in Asean
EC3373 ASEAN ECONOMICS
Vietnam in ASEAN
Tutorial Group: W2 (Friday 1-2pm)
Han HeChou Aaron A0085883M
Introduction
“The fastest growing emerging economy by 2050”, this is what the Senior Partner of PricewaterhouseCoopers LLP, John Hawksworth, claims of the potential for the Vietnam’s economy.Vietnam has transformed from a nation plagued with wars in the 1970s, to an economy that has posted annual per capita growth of 5.3% since 1986. Vietnam’s economic success started after the implementation of the ‘Doi Moi’ (Revolution) policy by the Communist Party of Vietnam (CPV). The goal was to create a country that was self-sufficient in food, and improve the standard of living of the Vietnam’s people. The reforms implemented include the transition of the economy that was heavily based in agriculture towards manufacturing and services. More importantly, under Doi Moi, the highly centralized planned economy of Vietnam started opening up itself to the outside world.
Since becoming a member of ASEAN in 1995, Vietnam has established FTAs between ASEAN, Japan, China and Korea. Furthermore, Vietnam joined the World Trade Organisation in 2007. These are significant milestones for Vietnam as she continues to be integrated into the regional and global economy. This widens the market for Vietnam’s exports and resulted in greater inflows of Foreign Direct Investment (FDI). The CPV continued to liberalized trade with the promulgation of the Law of Investment in 2005 that created an equal playing field for all enterprises in the economy and an ‘equitation’ programme that saw the sale of State Owned Enterprises to strengthen the private sector. These reforms by the CPV contributed to the rapid expansion of foreign trade over the last two decades. Vietnam’s exports have increased more than 11 times between 1995 and 2008, with the annual growth rate averaging 20.7%.
Since 2004, the CPV has adopted the Strategic Orientation for Sustainable Development (Vietnam Agenda 21). The idea
Vietnam in ASEAN
Tutorial Group: W2 (Friday 1-2pm)
Han HeChou Aaron A0085883M
Introduction
“The fastest growing emerging economy by 2050”, this is what the Senior Partner of PricewaterhouseCoopers LLP, John Hawksworth, claims of the potential for the Vietnam’s economy.Vietnam has transformed from a nation plagued with wars in the 1970s, to an economy that has posted annual per capita growth of 5.3% since 1986. Vietnam’s economic success started after the implementation of the ‘Doi Moi’ (Revolution) policy by the Communist Party of Vietnam (CPV). The goal was to create a country that was self-sufficient in food, and improve the standard of living of the Vietnam’s people. The reforms implemented include the transition of the economy that was heavily based in agriculture towards manufacturing and services. More importantly, under Doi Moi, the highly centralized planned economy of Vietnam started opening up itself to the outside world.
Since becoming a member of ASEAN in 1995, Vietnam has established FTAs between ASEAN, Japan, China and Korea. Furthermore, Vietnam joined the World Trade Organisation in 2007. These are significant milestones for Vietnam as she continues to be integrated into the regional and global economy. This widens the market for Vietnam’s exports and resulted in greater inflows of Foreign Direct Investment (FDI). The CPV continued to liberalized trade with the promulgation of the Law of Investment in 2005 that created an equal playing field for all enterprises in the economy and an ‘equitation’ programme that saw the sale of State Owned Enterprises to strengthen the private sector. These reforms by the CPV contributed to the rapid expansion of foreign trade over the last two decades. Vietnam’s exports have increased more than 11 times between 1995 and 2008, with the annual growth rate averaging 20.7%.
Since 2004, the CPV has adopted the Strategic Orientation for Sustainable Development (Vietnam Agenda 21). The idea
References: 1) Pete Mavrokodatos, Paul Jumi, Stan Stascinsky, (2001) Economic History of Vietnam 2) Implementation of Sustainable Development, National Report at the United Nations Conference on Sustainable Development (Rio +20) 3) Nguyen Vu Tin (December 2007) Contemporary Southeast Asia, Vol.29, pp 483.505 4) Moh Haflah Peie and Noor Aini Khalifah (November 1996) Vietnam in ASEAN : Economic Reform, Openness and Transformation, Vol 13, No 7) Nguyen Tien Dung, Impacts of East Asian Integration on Vietnam: ACGE Analysis 8) McKinsey Global Institute (February 2012) Sustaining Vietnam’s growth: The productivity challenge [ 1 ]. PWC, (March 2008), Vietnam might be the fastest growing emerging economy, Retrieved from : http://www.pwc.co m/vn/en/releases2008/vietnam-may-be-fastest-growing-emerging-economy.jhtml [ 2 ] [ 3 ]. Pete Mavrokodatos, Paul Jumi, Stan Stascinsky, (2001) Economic History of Vietnam [ 4 ] [ 9 ]. McKinsey Global Institute (February 2012) Sustaining Vietnam’s growth: The productivity challenge [ 10 ] [ 11 ]. Nguyen Vu Tin (December 2007) Contemporary Southeast Asia, Vol.29, pp 483.505 [ 12 ] [ 13 ]. Moh Haflah Peie and Noor Aini Khalifah (November 1996) Vietnam in ASEAN : Economic Reform, Openness and Transformation, Vol 13, No. 2, pp200.211 [ 14 ]