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Vietnam. Transition from Socialism and Awakening Capitalism. Over 82 million people but only 25 percent urban Population clusters in Mekong delta and Red River Valley Ruled by China 1000 years Conquest of Vietnam by France began in 1858 and was completed by 1884.

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vietnam

Vietnam

Transition from Socialism and Awakening Capitalism

slide2
Over 82 million people but only 25 percent urban

Population clusters in Mekong delta and Red River Valley

Ruled by China 1000 years

Conquest of Vietnam by France began in 1858 and was completed by 1884.

Declared independence from France in 1945 culminating victory in Dien Bien Phu in 1954

Viet invasion of Cambodia 1978-79 brought isolation- dependence on Soviet Union

One of few surviving Leninist states

structure of the economy
Structure of the Economy
  • Poor, densely-populated country forced to recover from war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy
  • 1997 Asian financial crisis highlighted problems but rather than reform, reaffirmed the government's belief that shifting to a market-oriented economy would lead to disaster. GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in 1999.
  • New leadership in 2001, Vietnamese have reaffirmed commitment to economic liberalization, implement structural reforms needed to modernize the economy and to produce more competitive, export-driven industries.
structure of the economy5
Agriculture 1994- 67% 2004- 24%

Industry 1994-12% 2004- 37%

Services 1994- 21% 2004- 39%

Structure of the Economy
hanoi
Hanoi
  • Situated in the Red River Valley at confluence of three rivers-easily defended
  • Fertile soil for rice cultivation basis of food regime
  • Captured by Han dynasty and endured 1000 years of Chinese rule
  • 11th Century after Viet independence Thang Long capital and political focus
  • But also commercial and manufacturing hub with Red River outlet to South China Sea
  • Repeated Chinese incursions but in 1428 Chinese were pushed out
  • Viet Nam rapidly expanded south to the Mekong delta and to the Gulf of Siam
  • Thang Long (Hanoi) took on character of an imperial city on the Chinese model
hanoi8
Hanoi
  • But by 17th C Le dynasty power declined- noble families N&S dominated
  • Expanses of cultivable land and climate more favorable to agriculture, South took on new character
  • Northern provinces highly traditional and inward looking- focus on wet rice
  • South with many tropical products became linked to major trade network to China, Japan and Korea
  • South became less traditional , more entrepreneurial, more prosperous and more in touch with outside
  • Cultural split between the two regions became intensified and eventually would have impact during colonial and Cold War eras
old quarter 36 streets
Old Quarter- 36 Streets
  • French colonists filled in the canals to create a network of 36 narrow streets that quickly acquired the name of the commodity traded there.
  • Bat Dan Wooden Bowls
  • Bat Su China Bowls
  • Cha Ca Roasted Fish
  • Chan Cam String Instruments
  • Cho GaoRice Market
  • Hang Bac Silversmiths
  • Hang Bong Cotton
  • Hang But Brushes
ho chi minh city aka saigon
Ho Chi Minh City-aka Saigon
  • Economic heart of Viet Nam 1980> 3.4 mil 2003> 5.7 mil
  • Entrepreneurial dynamism
  • French colonial architecture combined with new skyscrapers
  • Main locus for foreign investment
economic reform or renovation doi moi
Economic Reform or Renovation:Doi Moi
  • Dismantling of economic communes or collectives
  • Reallocation of land use for family farms
  • Opening country to foreign direct investment- recognize value of market mechanism
  • Reform of banking sector
  • Establish real interest rates>>>Savings
  • Direct subsidies to State Owned Enterprises (SOEs) ended
development strategies and problems
Development Strategies and Problems
  • Since 1987 New Economic Zones established to redirect and resettle migrants to rural areas from cities- land in highlands- limited success
  • Unprofitable state enterprises cut loose- no longer restricted by govt set prices and quotas
  • Encourage foreign capital and investment
  • Encouragement of entrepreneurship allowing private business to operate
  • Mekong River Commission – designed to support joint activities among Indochinese states- harnessing river for power, navigation, flood control, fishing and tourism
  • Greater Mekong Sub region- infrastructure improvements needed to integrate several economies
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