Vietnam’s Economic Growth in Renovation Period
With the pressure of the economy sinking into economic crisis, the Party and the Government of Vietnam decided to intiate an ecomomic renovation policy in 1986. After over 15 years of reforming economy, Vietnam has gained progresses and important achievements widely recognised inside and outside the country.
Overall, Vietnam has shifted from a centralized bureaucracy plan subsidized economy to a market-oriented one, from an economy massively developing state sector and groups to a diverse multilateral open economy, from an economy priotising heavy industries to an economy emphasizing 3 strategic econmic plans: food and foodstuff, consumer goods exports.
The economic growing process in the past 15 years can be divided into the following periods :
The 1986-1991 period
It was the period of transition, having the most important meaning in the process of tranfering from a centralised planning mechanism to a market one in the context of severe socio-economic crisis in the early 80s.
In this period, Vietnam had to face many difficulties and challenges. Foreign investment environment of Vietnam was quite open but some points in its foreign-investment laws were still inadequate and failed to meet the demands of foreign investors. Vietnam’s facility was outdated, not being suitable for its integration into the regional and the world’ecomony. The heavy bulky management mechanism with spead beraucracy was one of the great hinders to investors. The Dong though was quite stable, it wasn’t still convertible. Banking system was backward and inefficient.
In this period, the Government took a series of market-oriented reforming measures such as liberalizing prices of almost all consumer goods, removing subsidies via state budget for consumer goods’prices, devalueing exchange rate closer to its market value, implementing