Public Policies in East Asian Development: Facing New Challenges

By F. Gerard Adams; William E. James | Go to book overview

17
Public Policies in the Vietnam Economy
Vu Tuan AnhFor years, Vietnam followed a Soviet-inspired, centrally planned economic model in the north that clashed with a quasi-colonial economy highly dependent on U.S. assistance in the south. Since the unification of Vietnam in 1975, the country began a trial-and-error process to find a suitable path of development. Despite the enormous constraints placed on Vietnam's economy by its state of underdevelopment and by war damage, a long-term process of economic reform has been conducted. Public economic policy changes led to comprehensive reform in many fields.Three main lines of reform are being put into practice:
First, in the economic field, a shift from a centrally planned economy to a market economy;
Second, in social life, intensified democratization and building a legally authoritative state.
Third, in international relations, an open-door policy to step up communication and cooperative relations with the outside world.

Among these three economic reform orientations, economic policy reform is the most advanced. Under the influence of economic restructuring and globalization, the socioeconomic situation in Vietnam has undergone fundamental change.

This chapter examines the contents of economic policy reform in Vietnam, its impacts on economic growth, and perspectives of future socioeconomic development.


THE PROCESS OF ECONOMIC POLICY REFORMS

After unification of Vietnam in 1975, the majority of Vietnamese were optimistic about what the cessation of the war would bring. They expected that quick success

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