Vietnam’s economic development in the

period since Doi Moi

Contents
1. The policy of Vietnam when participating in WTO and ASEAN.......................................................1
2. International trade effects on the Vietnamese economy.......................................................................2
3. Drawbacks and benefits for Vietnamese business in international commerce.....................................3
4. The disadvantages and advantages for Vietnamese labor in international commerce......................4

Introduction:
Ha Noi, is Vietnam's capital, where the main activity happens in the daily routine. People drive
on scooters, purchase trad sell things from vital stuff to technology devices in myriad stores, and
go to school or workplace. In a developing country like Vietnam, everything can happen, even
miracles.
The country ranked in the list of the poorest country on the earth more than 30 years ago but then
achieve middle-income status.
Viet Nam War concluded in 1975 heavily impact on VietNam’s economy, which was one of the
lowest in the world, and growth under the government's following five-year central plans was
anemic. GDP was stagnated between no more than $300( around 200$ to 300$) by the 1980s.
But then a new method was applied. In 1986, Vietnam’s government introduced “ Doi Moi ”, a
set of new economies and policies aimed at changing the country into an "oriented market
economy."

1. The policy of Vietnam when participating in WTO and ASEAN

I. Before
By the mid-1980s, Vietnam's growth model, which it had copied from the former
Soviet Union and its neighbors, had shown major weaknesses and had become
outdated. Tense between Vietnam and China, the burden of Vietnam's force in
Cambodia, and US restrictions left Vietnam on the political fronts. However, the
country found it hard to develop relationships with other nations; having said that,
it relies too much on the Soviets in policy, economy, and also military.
II. After
After the 1980s, the Soviets decreased significantly for economic, military aid and
then marked a big shift. The government of Vietnam then introduced Doi Moi,
which means making a change in the economy and policy, to protect the country
from crashing. In essence, Doi Moi's early stages focused consistently on
removing self-imposed barriers to progress and implementing various market-
 oriented measures, such as internal market liberalization, FDI and private sector
encouragement, and the reduction of subsidies to state-owned enterprises (SOEs).
These actions had favorable outcomes almost immediately. Vietnam, a country
plagued by chronic food shortages, exported 1.4 million tons of rice for the first
time in 1989. It has been a rice exporter since then. It shipped 4.7 million tons of
rice in 2008, making it the world's second-largest rice exporter behind Thailand.
Indeed, in early 2008, Vietnam's exports were critical in averting a major
international food crisis.

Though, After government introduces Doi Moi, Vietnam’s economy promote

significantly in the next 20 years. During that time, the average annual of Vietnam
grow up to 6.5 percent, which was accounted for the highest rate of development
in a developing country. Vietnam get through the poorest countries in the world in
2008, with an income of up to $1,000.

2. International trade effects on the Vietnamese economy.

Reflecting on numerous rules to build an economic legal framework to function successfully
under Communist Party's direction. Vietnam has revised its constitution three times in the last 30
years, known as modifying and promulgating regulations, principles, and ordinances. The
National Assembly recently passed the 2013 Constitution as well as the series of legislation to
put the Constitution's contents into practice, creating the legal foundation for the formation and
improvement of socialist-oriented market institutions. These principles say that there are many
different types of distribution in the economy and that the government governs it using market
regulation.
Resulting in a more active function for many economic sectors as well as a potential business
climate. State-owned firms are reformed, and the amount of them is rapidly decreasing. New
kinds of collaboration have emerged among collective economic organizations that are more
compatible with commerce systems. The specific sector is also seeing a significant increase in
the number of businesses and increased performance, resulting in the creation of numerous
employment and contributing to GDP. Foreign-invested businesses are likewise encouraged, and
they have contributed significantly to employment creation and export development.
The importance of social and professional organizations in the national economy has been
consistently enhanced and encouraged. Under the leadership of the Communist Party of
Vietnam, the law-governed socialist state is being enhanced with a simplified State management
apparatus and reinvigorated State administration of the economy by the market mechanism.
Vietnam has progressively created the full market elements and market kinds with smooth
operations in line with the regional and worldwide market over the past 30 years, or Doi Moi.
With advancements in scale and structure, the commodities and service market has progressed as
well.
The financial and monetary markets have grown rapidly and vivaciously. The stock market was
created in tandem with the banking system, adding to the diversification of investment capital
sources. Meanwhile, the insurance market's operation has aided in the stabilization of production
and people's lives, as well as the mobilization of resources for the national cause of
industrialization and modernization. The real estate market has grown quickly, while the labor
market has taken shape on a national level.

The science and technology market is gaining shape and developing, with recent years seeing
significant increases in the quantity and value of technological transactions. The market for
essential public services, such as health and education, has taken a major stride forward,
allowing non-state resources to participate.

3. Drawbacks and benefits for Vietnamese business in international commerce.

1. Benefit

By participating in international trade activities, businesses can increase production and business

efficiency, expand the scale and diversify business activities to generate better profits for

businesses.

International trade can help enterprises improve their position, create position and power for

enterprises not only in the domestic market but also in the international market; help businesses

develop and expand the system of customers and partners; learn management experience, absorb

modern technology; help businesses expand and diversify export and import markets, limiting

risks when doing business in a single market.

2. Drawbacks

In addition to the above achievements and priorities, international economic integration

also has many disadvantages. These limitations and shortcomings have been raised in
 many Party events, especially recently Resolution No. 06-NQ/TW on the effective

implementation of international economic integration, maintaining stability. socio-

political in the context of our country's participation in new-generation free trade

agreements (FTAs), as well as in many studies and on economic forums:

1. The renovation process in the country, especially the reform and improvement of

institutions, first of all, the legal system, mechanisms, and policies have not been

implemented synchronously, not closely linked to the requirements of integration. and

competitiveness enhancement. On the other hand, the process of international economic

integration revealed many shortcomings compared to the requirements of ensuring

national defense - security, protection of political security, social order and safety,

ecological environment, preservation, and promoting national cultural identity.

2. The economy is still outsourcing and has not yet created reputable Vietnamese brands

in the world market. Exports have grown rapidly but not firmly, growth quality and

export efficiency are still low, the structure of exported goods is still heavily dependent

on foreign-invested enterprises.

3. The competitiveness of the economy, businesses, and key products are still low and

under pressure to compete with foreign businesses and products in the domestic market.

4. The disadvantages and advantages for Vietnamese labor in international commerce.

1. Employee

There are several methods to examine the Vietnamese economy and determine what has
changed, and the same is true for the labor market.
On the other hand, for the sake of this discussion, we may focus on one aspect that might be
viewed as a sign of Vietnam's transformation: trade openness. When it comes to exports, for
example, the volume and composition are much more different than they were twenty-five years
ago. In the mid-1990s, coffee, rice, and other agricultural goods accounted for the lion's share of
exports (almost half of the total). Textiles came next, accounting for nearly one-third of total
exports.
Today's export composition is far more complicated than it was back then. Agriculture and
textiles have shrunk in relative values. Electronics, along with other sectors and services, has
emerged. Although the number of agricultural and textile exports has increased dramatically in
absolute terms, it has decreased in relative ones since Vietnam presently sells a far broader range
of products and services to foreign markets.
The status in employment, also known as a type of employment in Viet Nam, is an interesting
indicator used in labor market analyses. This indicator, for example, tells us how many women
and men in the labor force work as contributors to their family's establishment. The rural
economy frequently has a high proportion of contributing family employees. It's worth noticing
that the total percentage of contributing family workers in employment has more than halved in
the last two decades. On the other hand, because the industry sector has grown to be a
considerably larger employer, it is not surprising that the proportion of employees in overall
employment has more than doubled in the last 20 years.
This research also reveals that one factor has not shifted as dramatically as others, namely
women's labor-force disadvantage. Women continue to outnumber males among contributing
family workers, who are often unpaid. Even though women are more likely than men to be in
wage work, female employees are paid 10% less on average than males.
2. Technology
The debate in Vietnam regarding technology and the future of work has centered on automation,
labor substitution with machines, and the problem of reskilling employees. For the sake of this
discussion, I'd want to bring up some additional points in the argument over technology and its
influence on labor markets.
Technology has the potential to liberate workers from risky or filthy physical labor. It can also
lower the chance of injury. Through the use of sensors and artificial intelligence, digital
technology has the potential to improve workplace safety. Sensors can collect data on dangerous
worker movements and assist in identifying high-risk scenarios. It may even make it easier to
monitor working conditions.
Workers are subjected to massive volumes of data as a result of new technology. Information
systems could theoretically track a worker's every step if they wore a wristband. Workers'
privacy is jeopardized as a result of this.
These examples show how the impact of technology on the labor market is far broader and multi-
faceted than automation. They also demonstrate how worker groups are still vital in the digital
age.
References:

Vanham, P. (2018). The story behind Viet Nam’s miracle growth. [online] World Economic
Forum. Available at: https://www.weforum.org/agenda/2018/09/how-vietnam-became-an-
economic-miracle.

www.ilo.org. (2019). The higher-skilled labor force is necessary for Viet Nam’s further
economic development. [online] Available at:
https://www.ilo.org/hanoi/Informationresources/Publicinformation/comments-and-analysis/
WCMS_694938/lang--en/index.htm.

en.nhandan.vn. (n.d.). Vietnam’s notable economic achievements after 30 years of Doi Moi.
[online] Available at: https://en.nhandan.vn/business/economy/item/3923702-vietnam
%E2%80%99s-notable-economic-achievements-after-30-years-of-doi-moi.html.