VIETNAM: AN ECONOMIC DRAGON AGAINST ALL ODDS

Abstract

Vietnam is the country that experienced the wars with France, the US and China and suffered a great damage of infrastructure and agriculture as a result. The communist leadership preserved its hold on power even after the collapse of the Soviet Union by introducing far-reaching market reforms with Chinese specifics. Unlike many of its neighbours in the region, Vietnam achieved considerable results in this field by creating a highly diversified economy and becoming the factory of the world for the top multinationals. Our article is trying to explore the main reasons for the dynamic growth of Vietnamese GDP and the most important sectors of national economy that contributed to it. The article notes that modern Vietnam is an agrarian country with a mixed-type industry. Vietnam is actively developing various sectors of its economy thanks to cheap labour and the ability to ensure fast production rates. Due to this, the country acts as one of the key directions for foreign investments and the outpost for the placement of industrial capacities of foreign corporations. By developing various industries, Vietnam is trying to increase its own exports through the maintenance of infrastructure projects and transport potential. Along with its industrial production, the country is actively developing the agricultural sector by exporting exotic fruit, tea, coffee and rice which are in demand not only in the Southeast Asian region, but also in the Western Hemisphere and Europe. Tourism is a significant source of income generation for the country, too. The Vietnamese government is encouraging foreign tourists to visit the country’s cultural monuments and prominent places by improving air connections. Therefore, in the conditions of increased internal and external threats and challenges, the Socialist Republic of Vietnam impresses with consistently high growth rates and strong attention of foreign investors, while combining the market with the principles of late socialism preserved in the state. The analysis of Vietnam’s economic development policy proves the incompleteness of the industrialization process. Nevertheless, technological renewal combined with the attraction of foreign investments and the increase of production is observed in various spheres of the national economy.