vietnams economic essay

Vietnam Case Study Sittipron Suksawang 11A

History // Background

Vietnam is a poor, densely populated country that has had to recover from the ravages of war. In 1975, Vietnam organized their economy following the Soviet Unions Planned economy. In the late 1980s, it was recognized that the plan had completely failed. They had set unrealistic production targets, they weren’t able to match the requirements which created a breakdown in the plans operation. They also had a low productivity whereas the population was increasing, which made food shortages, starvation and hyperinflation. They were at a serious crisis point.

Economic strategies
In 1986, Nguyen Van Linh marked a new era in Vietnam. He had the idea of improving Vietnam’s economy by making it Socialism. He wanted to reduce the role of government planning and become more market orientated like allowing private companies to operate. He also wanted western investments. Foreign investmen...