The miracle after the war: the accelerated growth of Vietnam’s economy

Worldwide you can find attention from countries that, after a devastating and devastating event, could never raise their heads and saw each other submerged in financial problems Very difficult to cope with. However, a small change can flourish the most hopeless nations.

Vietnam crossed one war against the United States that left between 966,000 and 3,010,000 Vietnamese deceased. Not only did the town’s moral collapsed with such tragedy, but cut many paths to stop again economically. With an unprecedented reform in the territory, the government was able to get ahead, carrying out what is considered a “miracle”.

Post war economy

After the Vietnam War in 1975the country was in ruins, with a collapsed economy and a population mired in poverty. Was governed under a Soviet -style communist systemwith a centrally planned economy where the State controlled production and land, eliminating private property.

In the 1980s, the country faced a severe crisis with a uncontrolled inflation which reached 700%, food shortages for a decrease in agricultural production, and a total dependence on Russian and China aid through Economic Mutual Aid Council. Without an efficient and isolated productive structure of the global market, Vietnam was stagnant In a deep crisis.

The miracle begins to take shape

Vietnamese reform known as Doi Moi It began in 1986, and was raised in five axes: renewal of thought, structure and economic management, of the political system, social policy and foreign policy. In his first stage, he focused on Agriculture and the business sectorwhile in the second prioritized the development of a market economy with socialist orientation. This included the modernization of state companies, the financial system, the Commercial Opening And, more recently, the administrative reform.

In ideological terms, a Self -criticism of subjectivism that ignored the real conditions of the country, reaffirming the importance of adapting to the dynamics of social development. In the economic field, the coexistence of different forms of property and the need for a market regulated by the State. Socially, he put himself in human being at the center of policiesseeking to balance economic growth with equity. Finally, in the political reform, the differentiation between the leadership of the Communist Party of Vietnam and The role of the State in the country’s management.

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Vietnam’s actuality

Today, Vietnam is considered a Economic miracle. Since the 1990s, its GDP grew at sustained rates from 6-7% per yeardrastically reducing poverty. Exports became the engine of the economy, with industries such as textile, electronics and footwear production leading growth. Companies like Samsung They installed factories in the country, making it a Key Production Center in Asia. In addition, your adhesion to World Trade Organization In 2007 and the signing of free trade agreements with Europe and other regions further promoted its development.

However, it still faces important challenges. His infrastructure It did not grow at the same rate as its economy, which generates problems in transport and logistics. In addition, its dependence on foreign trade does so Vulnerable to global recessions. Climate change is another serious problem, since the increase in sea level threatens the mekong delta, one of the most important agricultural areas in the country.