Macroeconomics Case Study

Vietnam's Doi-Moi Strategy – Can it Sustain the Economic Turnaround?

OR

Abstract:
The Doi-Moi strategy implemented by Vietnam's government, drastically revived the war-torn economy by initiating many reforms throughout the country. GDP increased at an annual rate of 3.9% between 1986 and 1990. Since 1992, the growth rate increased every year by 13-15%. Agricultural produce grew drastically and in the year 2003, the country ranked second in rice export. Between 1987 and 2004, 5,110 foreign direct investment projects were licensed with a value of $45.6 billion. The country became a member of the World Trade Organisation in the year 2007. Though Vietnam has witnessed a significant improvement because of Doi-Moi, the country continues to face challenges in the form of a rise in inflation, a crashing stock market, a lack of skilled labour and a prevalence of corruption in almost all the sectors. This case study details the challenges and steps taken by the government to overcome these problems.

Pedagogical Objectives:

• To the impact of war on the economy of Vietnam.
• To the results of the Doi-Moi strategy.
• To the various challenges facing Vietnam's economy.
• To the steps taken by the government to overcome these challenges.

Keywords :  Vietnam, Collectivisation, Economic reforms, Doi-Moi strategy, Trade, Agriculture, Foreign direct investments, Poverty, GDP growth, Vietnamese stock market, World Trade Organisation, Challenges, High taxes, Inflation, Poor infrastructure