Vietnam Economy

In 1986, Le Duan died and made room for a reform-minded younger generation. Under Nguyen Van Linh Doi Moi was announced (economic renovation) and introduced from 1989. This meant that thye abandoned central planning, collectivization was phased out and market reforms were introduced.

Foreign companies were allowed to invest in Vietnam. Vietnam at the beginning of the 1990s had international isolation into which it had come through the intervention in Cambodia, and the Americans lifted its economic embargo in 1993. Foreign investment and assistance to the country fell and as a result economic growth is currently at 10%. Vietnam, especially through the reforms in agriculture, is the second largest rice exporter in the world.

A substantial proportion of economic output is provided through financial support, goods and investments from overseas. The Vietnamese (especially from the U.S.) in 2000 had an economic output of approximately one billion U.S dollars. After adjustment for purchasing power parity, they adjusted GDP per person in 1999 to 410 U.S dollars, about 17% of the population earns less than one U.S. dollar per day.

At the Tenth Party Congress of the CPV, 18th to 25th April 2006, held in Hanoi, delegates adopted the 1178 Five-Year Plan for the period 2006-2010 (Socio-Economic Development Plan for the Five Year Period 2006-2010). Under this plan, Vietnam is to become a developed country by 2020 and economic growth will remain until then 8 to 8.5%.

In May 2006 it was announced that Vietnam and the U.S. wanted to conclude a bilateral trade agreement in June 2006. In November 2006 in Hanoi there was the summit of APEC countries, which also included U.S. President George W. Bush. On 11th January 2007 Vietnam joined the World Trade Organization.