The Macroeconomic Overview Of Vietnam

Throughout the course of history there has been a few basic pioneer traits which has become habitual and a way for humans to express themselves. One of the main and core habits which is an important way of expressing ourselves is through communication. Furthermore, as one becomes more precise about communication, they soon realize that they might not have the same views on certain topics. Hence, this leads to argumentation, which is the process of supporting an idea or simply a means for one to express and communicate themselves. Typically, an argument does not consist of name calling, and as a matter of fact disapproves ideas without evidence. Alternatively, good arguments consist of a few vital rhetorical issues such as, supporting evidence,

The economy is known as a new emerging economy especially after entering WTO in 2007. The Foreign Direct Investment (FDI) has increase considerably and the GDP is over 8% in the period of three years (2005-2007). Nonetheless, it is clear that the economic instability occurs after WTO accession of Vietnam 1 year. Consequently, the economy has suffered surging inflation as well as trade and fiscal deficit. (Figure 1)

India and China are two examples of developing countries that have most of their population in poverty: 171 million households in India, 286 million households in China, but with the same access as everyone else, they can earn a decent living. Combine the annual income of the two, and it reaches over $1 trillion. It is up to the private sector to tap into this market. However, traditional methods will not work.

Vietnam as a whole faced many troubles. Such as the North Vietnam aiding rebels who opposed to the government of South Vietnam; which fought the rebels with U.S. aid and advisory personnel. The number of U.S. forces in South Vietnam had reached more than 543,000 troops. Vietnamese nationalist and Communist, and his Vietminh (Revolutionary League for the Independence of Vietnam) declared Vietnam to be independent. But France was determined to reclaim its former colonial possessions in Indochina. In 1946, war broke out between France and the Vietminh. It finally ended in 1954, following the conquest of the French garrison of Dien Bien Phu by Viet Minh forces in May. In July, the two sides signed peace agreements in Geneva,

The global financial crisis greatly affected Vietnam because it led to more tightly macroeconomic policies that were implemented in 2011. However, the official unemployment rate remains very low, even though inflation dropped by 23% in 2008 and 18.6% in 2011(World Trade Organization). The global economic crisis also dropped foreign exchange reserves a large significant amount for the year 2008. However, in 2013 the foreign exchange reserves rose to 28.6 billion dollars in United States currency (World Trade Organization). The use of direct policy tools rather than indirect were used to accomplish macroeconomic objectives that were set out in 2011. The monetary policy controlled inflation and this can be seen in recent years when the central bank with the government help we 're able to devalue it’s national currency a minimum of seven times to improve export competitiveness and narrow it’s trading band (World Trade Organization).

Inequality problem is not discussed in detail by Perkins, but it is mentioned as one of reason of political instability in Thailand, due to the social gap between people from rural and urban area, which hinder its economic growth. It is consistent with Piketty (2014), that when the share of capitalists increasing in income, over the growth rate of income per capita, the inequality will rise, due to unequal ownership, which then lead to social inequality and political conflicts (pp. 182-183). Stiglitzs (2012) points out that fairness for the individual is crucial and it will motivate protests all over the world when the economic and political system bring the unfairness (p. 10). According to Mankiw (2013), inequality in income should not be the only object of public policy, but the inequality in opportunity should become the primary focus since it might cause inefficiency as well (p.26). Perkins shows Indonesia and Malaysia as sample of countries which suffered from inefficient social welfare allocation that make national development policy ineffective. The inclusiveness, as the crucial part of sustaining growth, is also related to the equality of opportunities when growth is created. No people should be left out and facing extreme inequality of income and education, since it will cause resistance and diverting process of growth through the conflict and political instability (Spence 2011, p. 88). The role of government to lower the income inequality and

In China alone the number of people living in poverty declined from 361 million to 204 million.

As a society we care about what we measure, we use what we measure, and what we measure drives policies and society in a particular direction. We therefore need to measure progress correctly. If societies blindly accept GDP as their measure of progress, they might be trying to maximize the wrong indicator for society. Bhutan as a living example of a society that has opened a national dialogue about what progress means, and they have created the Gross National Happiness (GNH) index to reflect their understanding of progress. Furthermore, the political and economic architecture of Bhutan is structured around maximizing GNH rather than GDP. We can draw a number of lessons from the Bhutanese experiment, namely that each individual society should strive to answer the following three

On 24th February, U.S President Barack Obama has ratified an agreement on civil nuclear cooperation between U.S and Vietnam, which enables America to join the market of civil nuclear energy in Vietnam and creates opportunity for them to sell reactors to Vietnam. According to The Associated Press, this is a sign of strengthening the bilateral cooperation between the two countries.

Vietnam has also had success in reducing poverty, from nearly 60% of people living in poverty falling to 20.7% in 2010 and presently below 10% (The World Bank, 2014). One of the causes of poverty was due to the lack of education (limited access) which was corrected over the years; primary school enrolments for the poor have increased by more than 90% and secondary school enrolments increasing by 70%. Not only were there rising levels of education but also diversification in off-farm activities, though there are still problems such as external shocks, inequality and macro instability that still create new challenges for Vietnam (The World Bank, 2013). As seen in Fig. 2, there was a high unemployment rate in 2010 but it has continued to improve as

During the last couple of decades, poverty reduction has followed economic growth, however not every country has seen growth. Constraints to poverty reduction are very country-specific, however volatile growth and vulnerability and non-inclusive growth can be seen as broad trends throughout.

Vietnam in the views of many Western nations, is a country that is growing both economically and socially, so fast that today, it has best United States in so many areas. It has attracted world-class investors and entrepreneurs, benefiting the economic development of the country. Socially, just only last year, the total number of international arrivals in 12 months reached by 8 million, whilst just the past 6 months, it has received and warmly welcomed more than 7 million visitors came from everywhere in the world. Vietnam is ranked as the 33rd country in the world to spend a large percent of its expenditures on education. A major factor for any country to improve socially, economically and to secure a better future for the young.

* Poverty: The majority of the poor are farmers who live in rural, isolated, mountainous or disaster prone areas, the households often have many children, the poor are disproportionately likely to be from an ethnic minority, In the rural areas, households with average income of US $150 (Wikipedia) are regarded as poor households. Poverty line percentage for Vietnam’s households was estimated 12 percent at the end of 2011. (Wikipedia).

Especially in recent years, ongoing budget deficits have led to the rapid growth of public debt. Vietnam’s total public debts have increased from about 40 percent of GDP in late 2007 to 57 percent of GDP at the end of 2010 and only declined slightly in 2011. At the same time, Vietnam’s foreign debts have surged

Goods and services are relative with the international transaction representing from the current account balance of changed in the exports and imports. Through the stronger domestic demand, imports of 16% growth have increased since 2009; subsequently import of goods grew with an average of 13.4% over 2010 to 2012. The goods account excess to RM102.7 billion for the year 2013, but still decline of RM22.9 billion from RM 125.6 billion of 2012’s record. Meanwhile, there is the lower exports balance from RM703.1 billion of 2012 to RM690.9 billion this year and higher imports balance from RM577.5 billion of 2012 to RM588.2 billion this year.