What are the advantages of Vietnam’s economic development?

Since 2008, Vietnam’s inflation rate has been rising, the stock market value has dropped sharply, the Vietnamese Dong has depreciated sharply, and labor strikes have occurred frequently. Some newspapers and magazines have compared the current problems in Vietnam’s economy with those that swept the entire country 11 years ago. In the wake of the financial crisis in Asia, international investment risk rating agencies (Standard & Poor's, Moody's, and Fitch) have successively issued announcements lowering their forecasts for Vietnam's economic prospects. At the same time, many scholars predict that Vietnam's economy is accelerating and will rapidly grow into an emerging industrial country. Based on a recent field trip to Vietnam, the author concludes: Vietnam is currently in the primary stage of industrialization. From all aspects, its economic take-off has favorable conditions in terms of time, location and people. It is the best in Southeast Asia. The most active and competitive economic growth star. However, while the economy is taking off rapidly, the many contradictions Vietnam has accumulated in the development process have become increasingly acute. Therefore, it is facing a critical stage of reforming its political and economic system. In other words, Vietnam's economic and social development has encountered a bottleneck. Whether it can break through this bottleneck, 2008 and 2009 may be critical years.

1. Vietnam’s Economic Development Trajectory

The first period: healing war wounds and restoring the economy (1975-1985)

After more than 20 years of war, Vietnam finally achieved the unification of its north and south in 1975. After reunification, Vietnam was riddled with holes and its economy faced collapse. Due to the destruction of the war, coupled with the rigid economic management model and bureaucracy, Vietnam has fallen into a serious economic and social crisis. People's lives are very difficult. Daily necessities must be rationed by the state. Daily necessities are in short supply. The inflation rate is as high as three digits. In 1976 it was 128% and in 1981 it was 313%.

Beginning in the early 1980s, the Vietnamese party and government began to try some reforms, especially in agriculture, encouraging cooperatives and members to reclaim wasteland and trial product contracting, which effectively mobilized the enthusiasm of farmers. In order to stimulate the enthusiasm for production, agriculture has recovered; in industry, the government has tried some preliminary reforms, including decentralizing operational autonomy and implementing various wage methods such as contract wages and piece-rate wages to mobilize workers' enthusiasm for production; preliminary reforms have also been carried out in the field of circulation. reforms, such as canceling the voucher system.

The second period: reform and opening up and the establishment of a socialist-oriented market economy (1986-1995)

Vietnam’s economy truly entered into rapid growth and development, starting from the implementation of reform and development in 1986 open. Its innovation and opening up also started from agriculture. The core of agricultural innovation is to return land to farmers so that farmers have complete autonomy over land and harvests, thus fully mobilizing farmers' enthusiasm for production. In terms of industry, it emphasizes market factors, changes the strategy that overemphasizes the development of heavy industry, introduces foreign investment, and encourages the development of export-oriented manufacturing. After several years of hard work, by the early 1990s, Vietnam had initially emerged from the economic crisis. The country's economic and social conditions had been significantly improved. The inflation rate dropped to 67.4% in 1990. Grain production increased year after year, and exports began every year in 1989. 1-1.5 million tons of rice (450,000 tons of rice were imported in 1988). By 1999, Vietnam's rice exports increased to more than 4 million tons, ranking second in the world, second only to Thailand.

The innovation strategy fully liberated Vietnam's productivity. From 1991 to 1995, the GDP grew by 8.2% annually, of which industry grew by 13.3%, agriculture grew by 4.5%, exports grew by 20%, and the inflation rate dropped from It dropped from 67.1% in 1991 to 12.7% in 1995, creating more than 1 million jobs every year.

The third period: National industrialization and modernization period (1996 to present)

From June 28 to July 1, 1996, Vietnam held the Eighth National Congress, summarizing the implementation of the reform route In the past 10 years, we have proposed a line to promote the country’s industrialization and modernization. From 1996 to 2000, although Vietnam was severely impacted by the financial crisis, it still achieved an average annual economic growth rate of 7%. From 2001 to 2005, Vietnam's economy entered a stage of rapid growth, with an average annual growth rate of 8%. In particular, joining the World Trade Organization in 2006 expanded Vietnam's economic openness and accelerated Vietnam's integration into the world economy.

As society continues to develop, the poverty rate decreases, and exports grow rapidly, the economic structure begins to undergo major changes: the proportion of industry and service industries gradually increases, and the proportion of agriculture gradually decreases. Vietnam has begun to transition from an agricultural country to an industrialized and modernized country.

On August 17, 2004, the Vietnamese government promulgated Decision No. 21 on “Stabilizing Development Strategic Orientation”. The decision declares that by 2020, Vietnam will become an industrialized country. In order to achieve this goal, the annual growth rate of industrial output is required to reach more than 13%. By 2020, Vietnam's economic structure will undergo fundamental changes. The output value of agriculture, forestry and fishery will only account for 13%. %, and the proportions of industry and service industry will rise to 45% and 42% respectively.

Vietnam is currently implementing a new five-year plan (2006-2010). According to the plan, the average annual economic growth rate during this period will reach more than 8%, and the GDP in 2010 will be 2000. 2.1 times, reaching about 94-98 billion US dollars, and the per capita national income is 1050-1100 US dollars.

2. Vietnam’s current macroeconomic situation

In an article analyzing the situation in Southeast Asia published in early 2008, the author held a relatively optimistic attitude towards the prospects of Vietnam’s economic development. Said that "Vietnam is the star of economic growth in the region." "International economists and observers are generally optimistic about Vietnam's economy and believe that Vietnam is a rising emerging industrial country in Asia. Vietnam's economic growth rate has remained at a high level of around 8% for several consecutive years, making it the fastest growing country in Southeast Asia. . In addition, the effect of joining the WTO will be further highlighted, and Vietnam’s ties with the world economy will be closer, especially the strengthening of economic ties with China, which will benefit Vietnam a lot. A foreign investment working conference was held in Hanoi. According to the conference, from 1987 to 2007, Vietnam has absorbed 9,500 foreign investment projects in the past 20 years, with a total foreign investment of US$98 billion. They come from 80 countries and regions around the world. Among them, 68% are from Asia, 16.2% are from the European Union, and 11% are from the United States. After joining the World Trade Organization, Vietnam's advantages in attracting foreign investment have become more prominent. According to statistics, in 2007, there were US$20.3 billion in direct foreign investment. Investment into Vietnam increased by 69.2% over the previous year. Foreign investment has made a positive contribution to transforming the economic and production structure and promoting Vietnam's move towards industrialization and modernization. At the same time, it has promoted Vietnam's connection with the world economy and further integrated Vietnam into the world. The economy has created favorable conditions. Some foreign observers believe that in recent years, China's labor costs have increased significantly, and environmental and natural resource bottlenecks have become increasingly prominent. Many foreign companies that originally invested in China have turned their attention to Vietnam and China's own capital. It has also begun to accelerate the pace of investment in Vietnam. It is foreseeable that as Vietnam's investment environment further improves, more foreign investment will enter Vietnam. Driven by a large amount of foreign investment, Vietnam's economy has entered the fast lane. Vietnam may replace China and become the main processing base for the export of labor-intensive products. In other words, Vietnam will become another world factory.

Recently, the regional and world economic situation has undergone major changes, influenced by the United States. Affected by factors such as economic recession and uncertainty in the world economic situation, Vietnam's macroeconomic situation has also seen some worrying phenomena, which cannot but arouse vigilance. In view of the new situation, the Vietnamese government has lowered its economic growth forecast for 2008. The original 8.5-9% dropped to 7%.

First, the phenomenon of high inflation. Some scholars pointed out that the biggest risk facing Asian countries may not be the impact of the subprime mortgage crisis in the United States, but high inflation. This is exactly the case in Vietnam. In recent months, Vietnam's inflation has been rising like a wild horse. The national consumer price index reached about 14% at the end of 2007 and rose to 15.7% in February 2008. 5 It rose to 25% in June and may reach 27% in June. Some foreign institutions predict that it will reach or exceed 20% in 2008, especially food and grain prices, which will have a serious impact on the lives of the middle and lower classes. High inflation is testing the Vietnamese government, and signs of social instability are beginning to appear in some places: strikes are increasing and people's dissatisfaction with the government is also accumulating.

In order to ensure the stable development of Vietnam's economy and society, the Vietnamese government recently introduced an emergency plan, including eight measures: taking various measures to encourage farmers to increase agricultural production; restricting grain exports; raising interest rates, tightening money, and temporarily suspending some unfavorable measures. Important investment projects, making way for and ensuring funds for projects that are directly related to the national economy and people's livelihood; injecting capital into various commercial banks; providing assistance to poor people living below poverty, etc.

The second is the slowdown in exports. Due to the sharp rise in domestic food prices, which has seriously affected people's lives, the Vietnamese government has decided to reduce grain exports from the original planned export of 4 million tons to about 3.2 million tons. The export of other agricultural products will also be reduced. In addition, in response to the tight domestic supply of new materials, Vietnam will also reduce exports of coal and other raw products in 2008. In addition, demand in the United States, Europe and Japan is declining, which has also affected Vietnam's commodity exports. Although Vietnam's export market has been quite diversified, and East Asian countries such as China are also Vietnam's main markets, Europe, the United States, and Japan are still Vietnam's main trading partners. If developed countries experience an economic recession, there is no doubt that there will be a negative impact on Vietnam's exports.

Third, many contradictions accumulated by the sustained and rapid economic development have intensified. In the 20 years since the reform and opening up in 1986, Vietnam's economy has continued to develop at a high speed and has initially escaped poverty and backwardness. However, the rapid development that has lasted for more than 20 years has also brought about many problems, and many contradictions have gradually been exposed and intensified. , including the contradiction between long-term rapid economic development and relatively backward infrastructure, labor disputes and contradictions, contradictions between regions and between urban and rural areas, contradictions between cadres and the masses, contradictions between reform and opening up and adhering to socialism, etc. Taking labor disputes and conflicts as an example, according to the "Asia Times" report: In recent years, Vietnamese workers have launched strikes to increase wages and safeguard their rights and interests. From 1995 to 2006, more than 1,000 massacres occurred across the country. There were strikes of various sizes, and in 2007 alone there were at least 541 strikes involving about 350,000 workers. Most of these factories were foreign-invested enterprises. Most of the strikes are for higher wages. Although the Vietnamese government raised the minimum wage for workers by 25% in 2007, lower-class workers still cannot make ends meet due to soaring prices of consumer goods, and labor dissatisfaction is rising. In mid-February 2008, more than 5,000 workers at Yazaky Eds Viet Nam Ltd, a Japanese-owned enterprise located in Haiphong City, went on strike, demanding higher wages and reduced working hours. This factory is a foreign-invested enterprise specializing in the production of auto parts for export. According to local newspaper reports, the average monthly salary of workers in this company is between 1.1 and 1.2 million VND (approximately US$68-75). Although it has exceeded the minimum wage stipulated by the Vietnamese government, it is still not enough to sustain the workers’ daily lives. Living Expenses. In early April 2008, more than 20,000 workers at a Taiwan-funded enterprise that specializes in producing Nike shoes for export to the United States went on a large-scale strike, demanding a 20% increase in their monthly wages ($59).

Regarding the current problems and various contradictions in Vietnam’s economic and social life, the Vietnamese party and government also admit that “the starting point of the economic foundation is still low, its efficiency and competitiveness are weak, and the political and administrative The progress of system reform is slow, and many cadres' moral corruption, corruption, waste and other shortcomings are becoming more and more serious. "The economic structure transfer is slow; the reform of cultural and social mechanisms and policies is slow, and various difficult social problems have not yet been solved." "The party's innovative thinking in some areas is slow." "Some cadres, party members, and even key party members at all levels have poor quality, poor ability and sense of responsibility, lack of pioneering spirit, and do not set examples. level and ability to complete the task.”

3. Analysis of Vietnam’s investment environment

Since the implementation of the reform and opening-up policy in 1986, Vietnam has been regarded as a "blessed land" for foreign investors, including Taiwan, Singapore, South Korea, and Thailand. Capital from China, Malaysia, the United States and Europe poured in, setting off one wave of investment boom after another. Why do foreign investors favor Vietnam so much? It can be seen from the following three aspects:

First, it is rich in natural resources.

One-third of Vietnam's land is arable land, which is suitable for the development of agricultural production and export-oriented agriculture; Vietnam is also very rich in tropical rainforest resources, with a vegetation coverage rate of 43.8%; Vietnam is rich in mineral resources, and more than 90 species have been discovered so far. There are more than 2,000 mines, of which 120 mines and 30 types of minerals have been designed to be exploited, mainly oil, natural gas, coal, and various metal and non-metallic products. Vietnam has a long coastline and rich and diverse aquatic potential.

Secondly, human resources are abundant and cheap. Vietnam's national population (in 2006) was 84.1 million, with urban population accounting for 26.2% and rural population accounting for 73.8%, of which two-thirds were born after the war (after 1975). In the 1980s and 1990s, the monthly wages of most manual labor workers were only US$30-50. In recent years, the Vietnamese government has repeatedly raised the minimum wage of workers, but it is still around US$60-100, making it the cheapest labor force in Southeast Asia. . Since the Vietnamese government has always attached great importance to popularizing primary and secondary education, although Vietnamese labor is the cheapest in Southeast Asia, its cultural quality and technical quality are relatively high.

Thirdly, the political and legal environment is stable and good. Vietnam implements a one-party system led by the Communist Party, and has a democratic tradition and atmosphere within the party. The Communist Party has established a high prestige in the long-term revolutionary war, and the legitimacy of the regime is very solid. Although some Westerners Forces also tried to implement the "Orange Revolution" in Vietnam, but they did not receive the support of the people. The Vietnamese party and government also attach great importance to improving the legal system and emphasizing the rule of law. The new party constitution adopted by the 10th National Congress of the Communist Party of Vietnam emphasizes the need to correctly handle the relationship between the party’s leadership, the law, and people’s democracy, and “update the party’s leadership.” methods, which must focus on updating the party's leadership style over the country. The leadership style must be institutionalized and embodied in the constitution and laws. "The party operates within the framework of the constitution and laws." "Respect and give full play to the people's sovereignty and accept people's supervision." The Vietnamese party and government have paid special attention to the construction of the legal system in the process of reform. Since the founding of the country in 1946, the Vietnamese Congress has passed 77 laws in a row, more than half of which were newly promulgated from 1986 to 2007, and more than 20 others were The law has been revised many times. For example, the Foreign Investment Law has been revised and supplemented five times in 1987, 1990, 1993, 1996 and 2000, establishing a complete legal system. In response to the increasingly rampant official corruption problem in recent years, the Vietnamese party and government have stepped up efforts to combat and prevent it. According to statistics, from 2001 to 2006, the Communist Party of Vietnam punished more than 40,000 party members by condemning, warning, expelling, dismissing, and sending them to court for trial. Among the punished party members, 118 were in the Politburo or The leading bodies managed by the Secretariat include leading cadres who have served in important tasks, including deputy secretary of the Secretariat of the Central Committee, chairman of the People's Committee, secretary of the provincial party committee, minister, deputy minister, etc. Among them, 13 are members of the Central Committee and 19 are ministers or deputy ministers. Ministers, 26 of whom are secretaries or deputy secretaries of municipal or provincial committees.

Everything is divided into two. The above-mentioned favorable factors in Vietnam’s investment environment will also change under certain conditions, and may transform from favorable factors into unfavorable factors. For example, Vietnam has attracted a large amount of foreign investment precisely because of its good investment environment, thus creating a relatively fierce competition. As mentioned earlier, foreign investment in Vietnam has reached as many as 80 countries and regions. The top 10 foreign investing countries (regions) include Taiwan, Singapore, Japan, South Korea, Hong Kong, British Virgin Islands, France, and the Netherlands. , Malaysia and Thailand. These foreign investors have invested and set up factories in Vietnam for a relatively long time, and have formed a relatively complete production and sales network, occupying a favorable position in the competition. For example, in the early stage, they rented a large area of ??factory land at a very low price. , has established a good relationship with the local government in Vietnam, and is familiar with local customs and customs in Vietnam.

The serious lag in infrastructure is also a problem that must be paid attention to. The author and the scholars who visited Vietnam all came to the same conclusion, that is, an important feature of the Vietnamese government's national income distribution policy is "hiding wealth among the people". The people are relatively wealthy and have beautiful private houses, while the government The annual budget exceeds its income, and the fiscal deficit accounts for about 5% of GDP. The government does not have the financial resources to engage in large-scale infrastructure construction.

For example, the industrial zones in Binh Duong Province around Ho Chi Minh City have relatively poor transportation and roads. Local Taiwanese investors said that for infrastructure construction such as road construction, half of the money is usually raised by manufacturers and half by the local government. In addition, Vietnam's geographical location and conditions have also caused inconvenience in transportation between the north and the south. Vietnam's territory is more than 1,600 kilometers long from north to south, like an elongated Latin letter S. It is wide at the north and south ends and narrow in the middle. In addition, Vietnam's terrain is high in the west and low in the east, which determines that most of its rivers flow from west to east. Therefore, it brings many obstacles to the construction of north-south land transportation. So far, Vietnam does not have a highway, and the railways are still narrow-gauge railways built during the French colonial era, and the speed is very slow. In addition, Vietnam's power shortage problem has not yet been fundamentally solved. Power outages are common in major and medium-sized cities, and many villages still have no access to electricity. In addition, there are still some unsatisfactory aspects in the soft environment, such as bureaucracy, corruption and other phenomena in governments at all levels.

When investing in Vietnam currently, you must also pay attention to the following issues:

First, determine the focus and direction of corporate investment according to Vietnam's national development strategy.

The focus of Vietnam’s development strategy in the next 10 years is to accelerate the pace of industrialization and modernization, especially to “encourage the development of high-tech industries, manufacturing, Software industry and other subsidized industries; developing open economic zones and special economic zones; encouraging and creating smooth conditions for all economic sectors to participate in the development of daily products and export products; producing important means of production in accordance with the direction of modernization; giving priority to attracting economic groups and Investment from multinational companies; attract domestic and foreign funds to invest in important projects in oil refining, petrochemicals, smelting, machinery manufacturing, fertilizers, building materials, and infrastructure construction as soon as possible. "According to the 2006-2010 five-year development plan announced by the Vietnamese government, The following five areas will be the focus of encouraging investment: First, electronic industry and high-tech investment projects. It is planned to build a factory in Hanoi to produce electronic medical equipment. Foreign investors are welcome to invest in information, biochemistry, new materials, microelectronics, automation, optical technology and other fields in the Hoa Loc High-tech Industrial Zone and the Ho Chi Minh City High-tech Industrial Zone. The second is refining and chemical projects. It is planned to build a refinery with an annual output of 7 million tons of petroleum products in Ngai Son District, Thanh Hoa Province, and build petrochemical companies in Vung Tau, Thanh Hoa and other places. The third is the electric power industry, which plans to attract investment to build 5 thermal power plants and a transformer production plant; the fourth is the manufacturing industry, including attracting investment to build automobile engine and parts production plants, shipyards, tractor factories, etc. The fifth is infrastructure construction. The main projects include: building a 78-kilometer railway from Bien Hoa Province to Vung Tau Province, a 49-kilometer railway from Dong Nai Province to Ho Chi Minh City, and Ho Chi Minh City to Dong Nai and Ba Ria-Tau. A 176-kilometer highway with 4-6 lanes in Don Province, and a 176-kilometer highway with 4-6 lanes from Ho Chi Minh City to Can Tho City.

Second, determine the location and location of corporate investment based on the regional and resource advantages of Vietnam.

On August 13, 2004, the Vietnamese government promulgated a decision on the establishment and development of three key economic zones. According to this decision, Vietnam divided the country into three key economic zones, aiming to give full play to the local potential, geographical advantages, resource advantages, etc., in order to accelerate the speed of social and economic development.

Key economic zone in the north. It includes 8 provinces and municipalities including Hanoi City, Haiphong City, Quang Ninh Province, Hai Duong Province, Hung Yen Province, Ha Tay Province, Vinh Phuc Province, and Bac Ninh Province. The key development areas of this economic zone include: high-tech industries, high-quality service industries, such as software industry, information equipment, automation and scientific and technological research results products, production automation equipment, robots, new materials, high-quality steel, shipbuilding industry, and machinery manufacturing. Industry etc.

Central key economic zone. It includes 5 provinces and cities including Da Nang City, Thua Thien-Hue Province, Quang Nam Province, Quang Ngai Province, and Binh Dinh Province. Among them, Da Nang is one of the largest ports in Vietnam. The development focus of this area is to take the port as the center and drive the economic development of the central and western regions. We will speed up the construction of Chu Lai Economic Development Zone in Quang Nam Province, Nong Qu Economic Zone in Quang Ngai Province and Chan Mui Linh Economic and Trade Development Zone, and plan to build Nhon Hoi Economic Zone in Binh Dinh Province so that it will gradually develop into the core of the region by 2010. .

At the same time, we will vigorously promote the role of Da Nang City, Hue City, and Quy Nhon City in trade centers, service industries, and international trade, making this region a trade, service, and tourism center in the Central and Western Regions.

Southern key economic zone. Including 8 provinces and cities including Ho Chi Minh City, Binh Duong Province, Vung Tau-Ba Ria Province, Dong Nai Province, Tay Ninh Province, Binh Phuoc Province, Long An Province and Tien Giang Province, aiming to build the region into an economically active, fast-growing and stable The region occupies a leading position in the country's industrialization and modernization construction, takes the lead in integrating into the international economy, and has become the engine driving the economic development of the southeastern region. According to this goal, a comprehensive economic zone will be established in the northwest of Ho Chi Minh City, including Long An Province, Tay Ninh Province and Ho Chi Minh City; high-quality training centers and medical centers will be developed in Binh Duong Province; high-level medical centers will be developed in Vung Tau-Ba Ria Province. Vocational training center; construction of adjustment roads from Ho Chi Minh City to Vung Tau, Truong Liang and Xining; construction of Long Thanh Airport.

Third, pay attention to labor-management relations. In the early days, among the relationships between labor, capitalists and the government in Vietnam, the relationship between the government and the capitalists was probably closer. If a labor dispute occurred, the government would generally lean towards the employer. In recent years, the Vietnamese government has revised the Trade Union Law and the Labor Law, giving more powers to trade unions at all levels. Generally, when labor disputes occur, the union will side with the workers. If a strike is approved by the union, the factory must also pay the workers their wages during the strike. A Taiwanese business manager who once worked in mainland China compared workers in China and Vietnam and believed that although Vietnamese workers have low wages, their technical quality is far inferior to that of Chinese workers. Chinese workers can easily be trained to become skilled workers, while Vietnamese workers are trained The difficulty is much greater. The reason is that there is a lot of land in rural Vietnam, and the living environment and conditions of farmers are relatively superior. Most farmers regard working in factories as a way to adjust their income during slack periods and as a supplement to increase their income. Therefore, they do not attach much importance to it. If you work in a factory, you can do it if you are satisfied, and if you are not satisfied, leave, because going home to farm is not a bad choice for Vietnamese workers. Workers in mainland China are different. They are often landless or landless farmers. Working in cities is their only means of livelihood. Therefore, they often value this job and will not resign at will.

In addition, we must also look at Vietnam's rich human resources dialectically. In recent years, the number of Vietnamese workers working overseas has surged. According to statistics from the Vietnamese authorities, there are currently about 500,000 Vietnamese working in 40 countries and regions around the world, mainly in countries and regions such as Taiwan, South Korea, Malaysia, and Japan. The amount of funds returned to the country reached 1.5 billion US dollars. Labor export is a strategic policy for Vietnam to solve the employment problem of surplus labor force, and it will continue to grow in the future. Some bosses who invest and set up factories in Vietnam are also worried that Vietnam will have a labor shortage in the next few years. Skilled and technical workers have always been in short supply. According to the author's observation, investing in labor-intensive industries in Vietnam, such as clothing, electronics, household appliances, etc., may still have some competitive advantages in recent years, but the advantages will not exist for a long time.

4. Conclusion

Recently, domestic and foreign media have frequently published reports and comments on the economic crisis in Vietnam, believing that an economic crisis similar to that in 1997 has occurred in Vietnam and will spread to the entire region. The author believes that these claims lack factual basis.

First, look at Vietnam’s macroeconomic situation correctly. The author believes that current problems in Vietnam’s economy should be viewed realistically, objectively and calmly. Overall, the fundamentals of Vietnam's economic development are still good, and the economic problems it has experienced since 2008 have been financial turmoil rather than financial crises. In the era of economic globalization, financial turbulence or instability is common in developing countries, especially emerging economies, and is not something to be surprised about. The public at home and abroad have overreacted, partly due to excessive media hype. Vietnam's economy has indeed encountered major difficulties, but it is not a crisis, but some conflicts caused by economic overheating in previous years are gradually intensifying. The Vietnamese government has adopted a series of emergency measures since the beginning of 2008 to address economic overheating and other phenomena, and has made policy adjustments, which have now begun to bear fruit.

Second, the current problems in Vietnam’s economy are closely related to the world economic situation. After more than 20 years of reform and opening up, Vietnam's economy has become increasingly closely connected with the world economy. The U.S. economic recession and uncertainty in the world economy have also had a direct impact on Vietnam's economy.

Take high inflation as an example. This is not a problem faced by Vietnam as a country, but a global problem. Both developed and developing countries are facing inflationary pressure, especially emerging economies. In the early post-war period of Vietnam, there was an inflation rate as high as 300%, but the Vietnamese people still survived. This is because she is very rich in natural resources. In addition to meeting the basic needs of the domestic people, basic foods such as grains, tropical crop products, and fishery products are also exported in large quantities. Therefore, high inflation in Vietnam will not bring special difficulties to people's lives.

Third, the current instability and difficulties faced by Vietnam’s financial industry will not have a serious impact on other industries. Vietnam's financial industry has not been completely liberalized. Although it is currently implementing socialist-oriented market economic reforms, the government still has many macro-control tools and means in its hands to prevent it from completely losing control. Moreover, Vietnam is still a country dominated by agriculture and is currently in the stage of rapid industrialization. Vietnam’s virtual economy does not account for a high proportion of the national economy. As long as there are no major problems in agriculture and industry, Vietnam’s economy will Able to basically maintain a healthy development trend.

Fourth, as long as foreign investment into Vietnam maintains a rapid growth rate, Vietnam's economic growth is likely to continue to remain at a relatively high level. According to reports, in the first half of 2008, Vietnam will receive a total of US$33 billion in foreign investment applications, 65% higher than the total of US$20 billion in 2007. And manufacturers that have withdrawn from China, where costs are rising, including global brands such as Canon Inc. and Intel Corp., as well as Taiwanese steelmakers and some South Korean shipyards, have begun to invest heavily in Vietnam.

Fifth, Vietnam is still a dynamic post-development country. The author believes that the current difficulties encountered by Vietnam's economic development are only temporary and will not change the basic direction and general trend of its economic development. As long as the world economic situation and the economic situation in surrounding areas improve, Vietnam will be able to quickly overcome the difficulties and regain its vitality. , embarking on the track of healthy development. Both Capital Partners LLC, a Los Angeles-based investment firm, said it will take 3-6 months to clearly see whether Vietnam can control its inflation problem. But the company said in a recent research note, "Once Vietnam's economy recovers from currency issues, we expect global investors to once again be excited about Vietnam's long-term prospects."