VIETNAM NATIONAL UNIVERSITY – HOCHIMINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS
Subject: MACROECONOMICS
Students’ Name:
Đỗ Linh Phụng – BABAIU12264
Nguyễn Thanh Hường – BA070006
REPORT
The economy of Vietnam is a developing planned economy and market economy. Since the mid-1980s, through the "Doi Moi" reform period, Vietnam has made a shift from a highly centralized planned economy to a socialist-oriented market economy which use both directive and indicative planning (Five-Year Plans of Vietnam). Over that period, the economy has experienced rapid growth. Nowadays, Vietnam is in a period of being integrated into the global economy. Almost all Vietnamese enterprises are small and medium
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In 2004: The export turnover in 2004 was $26.003 billion, higher 28.9% than in 2003 and also the highest growth rate in this four years. This is one of the biggest successes of Vietnam’s economic in this period. So in 2004 the export turnover increased $5,824 billion in comparison with 2003, the reason was increasing the cost accounted for 33%, increasing the quantity of exporting goods accounted for 67%.
In 2009: In the beginning of 2009, the world was facing with the Great Recession pushed Vietnam’s economy to fall down seriously. In there, the export turnover of internal economic area was $1.7 billion, lower 21.9% than Jan, 2008. Except for rice, the export of almost goods in Jan, 2009 were lower than the counterparts in 2008.
In 2012, export rose 18.2%, valued at US$114.57 billion. Vietnam 's main export market included the EU with US$20 billion, USA with US$ 19 billion, ASEAN with $US 17.8 billion, Japan with US$13.9 billion, China with US$ 14.2 billion, and South Korea with US$7 billion.
3. The acceleration of Vietnam’s exports can be explained by many factors, including the considerable expansion of export markets. There are four salient points in Vietnam’s export markets as follows.
First, the number of countries and territories that import Vietnamese goods has increased rapidly in the last ten years. Before the Doi Moi (renovation process), Vietnam mainly had trade relations with the countries in the communist bloc. Since Doi Moi and the Foreign
For centuries Vietnam had been under Chinese rule. The Vietnamese people were an oppressed society and were exploited by the Chinese. Forced labour was brought upon the Vietnamese people, and there were many tyrannical Chinese governers along with constant demands of tribute for the Chinese rulers. There had been many revolts by
1) Vietnam was invaded and occupied by the Japanese during world war 2. Before Japan took over it was under French admiration since the early 19th century. Inspired by china and Russian communism, Ho Chi Minh shaped the league for the independence of Vietnam, or Viet Minh, to fight the French and japan administration. Japan ended up withdrawing their forces in 1945 and this left the French educated emperor, Bao Dai in charge of the independent Vietnam. The Viet Minh acted immediately and seized the northern city of Hanoi and declared it the democratic republic of Vietnam, of which Ho Chi Minh wold be president of.
In the institutional context, North Vietnam’s effective civ-mil relations were exemplified by their strategy called “dau tranh” (meaning struggle). The two kinds of dau tranh, political and military, were tied together to achieve North Vietnam’s ultimate objective. Even though there were debates about how to implement the strategy, these debates reflected North Vietnam’s healthy civ-mil relations. Despite the disputes, political activities were matched by
To a degree, the French did bring some commercial and economic activity to Vietnam in the form of rubber and agricultural production and developed architecture in the cities like harbors, roads, schools and sewage removal. They also developed a system for delivering fresh water. However, the French did not do this to benefit the Vietnamese, rather, they did it to make money, educate the workforce and develop a successful
Production was nonexistent. Northern industries and infrastructures were systematically ravaged by the military might of the United States. The South fared little better. Viet Cong attacks disrupted significant economic activity. The fall of Saigon ended this murderous conflict in 1975. The country was united again under communist economic tutelage. This correlated to huge drain of human capital. By 1982, close to 1 million people fled the country; among them tens of thousands of professional, intellectual, technicians, and skilled workers. The next decade (1976 - 1986) saw the economy of Vietnam plodding along under the weight of central planning. The Vietnamese economy has been plagued by enormous production difficulties, supply and demand imbalances, inefficiencies in distribution, soaring inflation rates, rising debt problems, excessive governmental corruption and illegal asset confiscations by authorities. Vietnam is one of the few countries in modern history to experience a sharp economic deterioration in a postwar reconstruction period. Its postwar economy was one of the poorest in the world and has shown a negative growth in total national output as well as in agricultural and industrial production. Cracks began to appear in the facade of the communist command economy. In 1982, a compromise was reached. Excess food production was allowed to be sold at markets or sold to the State for profit. Free enterprise was sanctioned and small export firms were established to try to sell on the export markets. Planning started to unravel from the rigid communist system and decentralization was allowed to flourish. This activity culminated with the Doi Moi reforms to economic activity. Doi Moi (Vietnamese Perestroika) combined free market incentives (profit!) with government planning. The program abolished agricultural
Vietnam was a French colony dating back to mid 1800s. Vietnam was meant as a farming colony where they would grow things such as tobacco, tea, and coffee. The French treated their colony poorly by denying civil
The economic grew slowly under the government’s planned economy system. In 1986, the government launched its “socialist-oriented market economy program (Doi Moi), which supported the creation of privately owned enterprises and foreign investment. The economy grew at an annual of 7 percent and poverty was reduced by 50 percent. Since 2001, Vietnam has had one of world’s fastest growing economies. Vietnam has signed a free trade agreement with the European Union and when the deal takes effect next year, tariffs will be eliminated on 90 of European goods entering Vietnam, which will make the country a distribution hub, according to Phil Hogan, the EU’s commissioner for Agriculture and Rural Development. This will create for more jobs for the Vietnamese working class and continue to spur economic
The Vietnamese history according to Jonathan Neale, have a long time battle of invasion and colonization by foreigners. Vietnam is a united nation who’s willing to fight and protect their lands and freedom from their enemy with bloods and souls. Before the Vietnam War begins, Vietnam is of one French’s colony in Southeast Asian along with Laos and Cambodia in the late 1800’s, which collectively called the Indo-China. When the French took over Vietnam, they started to change the Vietnamese’s economy by minimizing the local resistance under the “divide and strategy” rule to prevent the Vietnamese unity by creating caste system between local landlords and rice farmers. Under this rule, the landlord’s job is to take over all the lands from the
builds up as you keep waiting for the murderer to be caught and to see
The war during the period of 1954 through 1975 crippled the economy of Vietnam, suffering over 1.5 million military and civilian deaths, the country also suffered from the mass exodus of refugees leaving which included business professionals, virtually no economic growth in Vietnam due to many reasons. Among them was their economy was dominated by small scale production, low labor force, material and technical shortfalls as well as insufficient food and consumer goods. By 1986 however, Vietnam had launched new political and economic renewal campaigns which were helped this small country go from a centrally planned economy and move into market socialism. By the 1990 the
Vietnam has a very rich history that often goes unnoticed and unaccounted for, this is most likely due to the war being such a big landmark in the history of Vietnam. Before the war many events transpired that would eventually lead up to the war. In the late 19th century Vietnam was considered to be a French colony. The French built their own standing infrastructure, they began to build railways and roads and bridges. All of this building meant heavy taxation on the Vietnamese. This was all good and progressive for vietnam however “Naturally the Vietnamese wanted independence.” (http://www.localhistories.org/viethist.html) From there Ho Chi Minh founded a revolution and within 20 years Vietnam came under Ho Chi Minh rule.
Moreover, even though producing in Vietnam would suppose a strong saving in cost in the labor-intensive processes, the risk of mold duplications and counterfeits is high. The imitation of the company’s products would eliminate the differentiation that allows them to charge a much higher price than the local manufacturers (15$ compared to 3$). Also, the company lacks of experience establishing a wholly owned subsidiary in a new country.
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO, Vietnam’s trade has become depend on global
This study was conducted to (a) determine which market is the most dynamic for Thai exports, (b) measure the intensity of trade between Thailand and its regional trading partners and (c) test whether the modified Revealed Comparative Advantage (RCA) index, which was developed based on the gravity trade model, is applicable for measuring Thailand’s competitiveness resulting from its border trade policy. The RCA index is typically applied based on three conceptual points. First, the trade balance index (TBI) can be used to indicate whether GMS countries are net exporters or importers. Second, the trade balance is typically decomposed by product and country (i.e., bilateral trade balance). Relevance refers to the degree of concentration of trade imbalances
Vietnam is politically very stable and with one party control i.e. Communist Party, the country continues to achieve higher political stability. “Political” aspect is very important for Vietnam as the country continues to have many State Owned Enterprises (SOE) that play major roles in economy of the country. Therefore, it is important for Vietnam to have a stable government that is able to provide good governance and control over SOEs and other business activities. There are some good decisions taken by current government such as freedom of press. However, the country faces some disputes over certain matters such as Vietnam – China and U.S. – Vietnam tensions are major concerns for government. These tensions make it difficult for government to