- Industries and sectors
- Agriculture and industry
- What was done
- President of Vietnam
- Market economy
- Silent Tiger
- Non-government sector
- The role of the state
- Vietnam exchange rate
- Expert forecasts
In the five years leading up to 2015, the Vietnamese economy overcame many difficulties, but its high growth rates were maintained and the underlying macroeconomics remained stable. GDP growth on average over this period remained 7%, public investments in the total volume increased two and a half times and amounted to 42.9% of GDP. The financial crisis is raging in the world, but the inflow of investments into the country was ensured, and therefore the Vietnamese economy survived. Moreover, in 2010 GDP was $101.6 billion (which is 3.26 times higher than in 2000), while in 2015 per capita GDP reached $1168.
Industries and sectors
Vietnam's economy is rapidly developing in almost all of its industries and sectors. Agriculture pleases with a steadily increasing contribution to the country's economy, especially in food production, and - importantly - fully ensures food securitystate.
Compared to the previous period, the standard of living of the peasantry, and the rural economy of Vietnam as a whole, has grown. Investment in construction saved the day, infrastructure improved, jobs were created, hunger was eliminated, and poverty was significantly reduced.
Agriculture and industry
Also heavily invested in new crop varieties with good quality, along with the development of industrial clusters and craft villages to boost Vietnam's agriculture. The industry has also been actively developing with the direction of diversification and quality improvement, and the competitiveness of products has been constantly improved.
Vietnam enterprises, successfully balancing between supply and demand, expanded the geography of export markets and supported the domestic market by all means. Investments were also directed to the development of a number of new industries for the country. High technologies are applied at enterprises in all sectors of the Vietnamese economy. The service sector is growing at a steady pace. GDP growth is shown in the following illustration.
What was done
Government regulation of the economy in Vietnam is not carried out strictly. The creation of institutions that improve the market economy in its socialist orientation continues. The Communist Party (CPV) has received a course of renewal, and it has already been legalized. Therefore, the business and investment climate has improved significantly, various types of markets continue to emerge, andVietnam's economic performance is getting noticeably better, and the economy itself is becoming more diverse.
State corporations are gradually being formed, for this the activities of companies are being consolidated, and certain results have already been achieved in this process. For example, the number of companies in the country is 2.3 times higher, and the volume of their capital is 7.3 times higher compared to five years earlier. The joint-stock form of companies has become very widespread. This growth was also facilitated by the development of the sphere of culture, training, education, technology and science. Great attention is paid to the protection of nature - its resources, even the industry of Vietnam lags behind in importance in comparison with this task.
The state budget now spends on training and education up to twenty percent of all funds spent, with special attention to remote regions where the socio-economic situation is more difficult, as well as places where national minorities live compactly. By 2010, all cities and provinces in Vietnam were covered by the standard of incomplete secondary education, and in 2015, the skilled workforce is already up to forty percent of the total.
Research activities are rapidly developing and making an exceptionally large contribution to the Vietnamese economy, accompanying scientific and technological progress and the emergence of new technologies. Scientific divisions have almost mastered the mechanism of autonomy, a market for science and technology has formed, which significantly increases investment in this industry.
President of Vietnam
The tenth president in 2016 was elected Chan Dai Quang, Professor, Ph.D. and Jurisprudence. For a long time he worked in the structure of the Ministry of Internal Affairs of Vietnam and on the party line, he was a deputy. The President of Vietnam has a lot to worry about. He publishes decrees, laws, the Constitution, commands the armed forces of the country, appoints, dismisses, recalls the chief prosecutor, the president of the supreme court, the prime minister, vice president, and also any member of the government, if there is a reason in the form of a decision of the committee of the national meeting.
It is the President of Vietnam who can declare war and amnesty (on the same basis - the decision of the National Assembly committee), general or partial mobilization, martial law and so on. The president also deals with the diplomatic services, making decisions about ranks, titles and appointments, as well as about awards. Only the president can appoint or recall a plenipotentiary diplomatic representative. He negotiates, receives diplomats from other states, concludes agreements, terminates them (sometimes after consideration by the National Assembly). The deprivation of citizenship and the adoption of citizenship are also under the jurisdiction of the president, he also decides on issues of pardon.
All the achievements that were listed above are the result of very competent leadership by the Communist Party, which is trusted by the people of Vietnam, and therefore makes great efforts. Economic development was provided with favorable conditions. And inFirst of all, this is the formation of a diverse system of management in line with a market economy. The policy of multistructural structure, the diversity of forms of ownership, the real renewal of socialist postulates - all this helped in creating a system of economic entities.
The administrative-planning mechanism of governance was softly and smoothly replaced by a market one. For a long time, state-owned companies and cooperatives coexisted with emerging business entities based on private or foreign property. Thus, the market economy was formed quite quickly and painlessly, in contrast to the path traveled by the Russian Federation, which abandoned all previous values, including following socialist dogmas.
Everyone knows about the incredible economic growth of the countries of Southeast Asia, for which they were nicknamed the East Asian tigers. Vietnam was not included in this four, and the media did not trumpet the entire world about the colossal successes of the Vietnamese economy. Gradually, however, this country caught up with its neighbors that had pulled ahead in all respects. Moreover, the future for Vietnam is seen by many experts as brighter than that of the same South Korea. It's all about the gradualness of such a breakthrough.
State-owned companies deliberately concentrated, first in key industries and sectors of the economy, received permission from the state for entrepreneurial activity and thereby acquired independence as subjects of a market economy. Over all these years, the renewal of the state-owned enterprise has increased the cost of equity capital by 7.22 times, and its volumeincreased by 12.88 times. State-owned companies strengthened, which created a material basis for the normalization of social and political problems, and the business environment became stable. That is, the state not only regulated the market, it constantly worked to expand and stabilize it.
Now some numbers. The non-state sector in the total value of companies increased by 76.84 times, and companies based on foreign capital - by 10.36 times. Jobs in the non-state sector are also impressive in number, it has increased by 6.37 times. Companies using foreign investment also attracted a lot of people, but still slightly less, their number increased by 6.25 times.
The amount of capital in non-state companies increased by 8.95 times. Cooperatives have gradually shifted their focus to supporting small businesses and providing services. Thanks to this shift in the structure of the Vietnamese economy, the number of economic entities increased, and therefore conditions were created for the effective development of resources - both external and internal.
The role of the state
During all these years, while the renewal took place, the state and the functions of its economy progressively adapted in order to enter market relations as smoothly as possible. The regulatory function was transferred from direct participation of an administrative and regulatory nature to legislative ones, where politics, strategy, and plans for social and economic development were taken into account. There are new macro management tools.
The state no longer directly interferes in production activities, it is focused on creating a business environment, a legal framework. The state also invests in the development of infrastructure, and economic policy is entirely based on the laws of the market. Such methods could not fail to bring a positive effect, since they allow you to quickly respond to external and internal instability, and also contribute to the solution of the most pressing social problems, which were thus defeated. The main ones are hunger and poverty. And it was in the country quite recently.
Vietnam exchange rate
In the past few years, the rate has not changed significantly, it has been quite stable for a long time. Vietnamese money - dong. Today, the Vietnamese exchange rate is as follows. For 1 euro in December 2017, you can get 26,735.60 dong. For one hundred rubles - 38,593.90, and for one dollar - 22,704.00 dong. Too long numbers, so it is quite difficult for tourists to count them. However, it has to. One of the most actively developing sectors of the Vietnamese economy is tourism.
Guests of the country first of all, of course, study local money. They can be here in coins, or they can be in banknotes. There are almost no coins in circulation, and if a tourist comes across a Vietnamese metal coin, he keeps it as a souvenir. Banknotes are not paper, but plastic, durable. They look nice, they are pleasant to the touch. Dignity is different, as elsewhere: 100 dong, 200, 500, 1000, 2000, 5000, 10,000, 20,000, 50,000, 100,000, 200,000, 500,000.two bills - a million at once.
The current year 2017 gave Vietnam an interesting gift: this country has become the world leader in the number of rich people (we alth growth research from Knight Frank). In general, the share of we althy citizens in Vietnam from 2010 to 2016 has increased by 320%, and for the first time in these years, Vietnam has displaced not only India, but also China from the first places (290% and 281%, respectively) in terms of growth.
Experts also believe that in the next two years, China will yield to Vietnam in other indicators. For example, the Vietnamese are currently investing 5.7% of GDP in infrastructure. And not at all the poor Philippines and Indonesia, for example, only 3% and 2%, respectively, spend on infrastructure programs.