Economy of Vietnam
Vietnam, as an emerging economy, ranks 47th in the world based on GDP growth, and if we consider the PPP (Purchasing Power Parity), it occupies position 35 on the global scale. Regarding international input, it is a proud member of the WTO and ASEAN.
Vietnam was a highly centralized economy until the mid-1980s, but a reform was implemented that introduced a mixed economic structure which relies on 5-year economic plans and programs. That move significantly contributed to growth and prosperity, and as of now, Vietnam is about to be integrated into the global economy as a vital participant in international markets.
Vietnam is known for agricultural exports and is now one of the places that represent a foreign direct investment hub. Big international corporations like the idea of a competitive market and affordable labor force in a rising economy. As a communist country, it also had to overcome the economic hurdles of the post-Cold War period when it struggled with sustainable growth due to slow productivity.
Nowadays, Vietnam, as a transitioning economy, relies heavily on direct foreign investment to create jobs and keep its economy steady. According to many statistical and economic indicators, it is also one of the fastest growing economies in the world with an annual GDP growth between 5 and 6%.
Even if there are many positive elements that could potentially lead Vietnam to be 20th strongest economy by 2050, the country still struggles with administrative barriers that keep foreign investments away, and the lack of transparency due to its Communist regime could also slow down the economy. Furthermore, Vietnam did make some steps towards privatization of state-owned businesses, but it has yet to make further efforts to expand the still-limited private sector. Since the financial crisis in 1997 that affected Asia, Vietnam gives an advantage to macroeconomic stability over growth.
In the decades between 1950 and 1970, the economy was seriously damaged and hampered by the Vietnam War, as well as by the follow-up rigorous economic measures which brought more harm than good. Only later reforms from the 1980s onwards stabilized the crippled economic state.