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Vietnam is a densely populated, developing
country that in the last 30 years has had to recover from
the ravages of war, the loss of financial support from the
old Soviet Bloc, and the rigidities of a centrally planned
economy.
Substantial progress was achieved from 1986
to 1997 in moving forward from an extremely low level of
development and significantly reducing poverty. Growth averaged
around 9% per year from 1993 to 1997. The 1997 Asian financial
crisis highlighted the problems in the Vietnamese economy
and temporarily allowed opponents of reform to slow progress
towards a market-oriented economy. GDP growth of 8.5% in
1997 fell to 6% in 1998 and 5% in 1999. Growth then rose
to 7% in 2000-05 even against the background of global recession.
Since 2001, however, Vietnamese authorities have reaffirmed
their commitment to economic liberalization and international
integration.
They have moved to implement the structural
reforms needed to modernize the economy and to produce more
competitive, export-driven industries. However, equalization
of state-owned enterprises and reduction in the proportion
of non-performing loans has fallen behind schedule. Vietnam's
membership in the ASEAN Free Trade Area (AFTA) and entry
into force of the US-Vietnam Bilateral Trade in December
2001 have led to even more rapid changes in Vietnam's trade
and economic regime. Vietnam's exports to the US doubled
in 2002 and again in 2003. Vietnam became a member of the
WTO in 2005.
Among other benefits, accession allows Vietnam
to take advantage of the phase out of the Agreement on Textiles
and Clothing, which eliminated quotas on textiles and clothing
for WTO partners on 1 January 2005. Vietnam is working to
promote job creation to keep up with the country's high
population growth rate. However, high levels of inflation
have prompted Vietnamese authorities to tighten monetary
and fiscal policies.
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3280-55A Tamiami Trail, PMB 297
Port Charlotte, Florida, 33952, USA
Email: info@vietnamhouserentals.com
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