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Monday, 20 September 2004 06:00 |
The reform process started in the early 90ties, where the agriculture sector became an engine for the economic development. In 2001 a change in the national constitution was carried out, which helped the private sector. Now Vietnam is the second largest rice producer in the World. Vietnam’s growth rate is 7% (- more than double of an average developing country).
However, one must still realise that 30% of the population still lives in poverty. In the beginning of the 90ies, however, it was the double amount of people – so Vietnam has seen an enormous progress.
Vietnam’s growth rate is only surpassed by China. Vietnam and Laos both fear their powerful neighbour, China, and join forces in order to withstand China’s influence. Vietnam’s trade agreement with US is by Vietnam considered of the utmost importance and benefit to the country. Next step for Vietnam is to follow in the foot steps of China and become members of WTO. This is planned by Vietnam to be in 2005 – however, realistically it will probably happen in 2006.
In 1990 there were 110 private businesses in Vietnam, in 2003 100,000. This is an amazing development, even though problems exist in form of corruptions and bureaucracy.
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