VIETNAM: AN ECONOMIC DRAGON AGAINST ALL ODDS

Abstract

Vietnam is the country that experienced the wars with France, the US and China and 
suffered a great damage of infrastructure and agriculture as a result. The communist leadership 
preserved its hold on power even after the collapse of the Soviet Union by introducing far-reaching 
market reforms with Chinese specifics. Unlike many of its neighbours in the region, Vietnam achieved 
considerable results in this field by creating a highly diversified economy and becoming the factory 
of the world for the top multinationals. Our article is trying to explore the main reasons for the 
dynamic growth of Vietnamese GDP and the most important sectors of national economy that 
contributed to it.
The article notes that modern Vietnam is an agrarian country with a mixed-type industry. 
Vietnam is actively developing various sectors of its economy thanks to cheap labour and the ability 
to ensure fast production rates. Due to this, the country acts as one of the key directions for foreign 
investments and the outpost for the placement of industrial capacities of foreign corporations. By 
developing various industries, Vietnam is trying to increase its own exports through the maintenance
of infrastructure projects and transport potential.
Along with its industrial production, the country is actively developing the agricultural sector
by exporting exotic fruit, tea, coffee and rice which are in demand not only in the Southeast Asian 
region, but also in the Western Hemisphere and Europe.
Tourism is a significant source of income generation for the country, too. The Vietnamese 
government is encouraging foreign tourists to visit the country’s cultural monuments and prominent 
places by improving air connections.
Therefore, in the conditions of increased internal and external threats and challenges, the 
Socialist Republic of Vietnam impresses with consistently high growth rates and strong attention of 
foreign investors, while combining the market with the principles of late socialism preserved in the 
state. The analysis of Vietnam’s economic development policy proves the incompleteness of the 
industrialization process. Nevertheless, technological renewal combined with the attraction of 
foreign investments and the increase of production is observed in various spheres of the national 
economy.