Economic renovation: Doi Moi policy

Since 1986, the government launched the "Doi Moi" or all-round renovation process, stepping in the general development trend and the process of gradual globalization and regionalization. The 6th Congress of Vietnam Communist Party in December 1986 strictly self-criticized its mistakes in the past years, assessing carefully its achievements, analysing mistakes and drawbacks, setting forth all-round renovation policy. With top priority being given to economic reform for creating a multi-sector market economy regulated by the Government, at the same time consolidating legal environment and renovating Party's and State's structure. Since then the Vietnamese economy became opened and transformed from centralized planned economy heavily based on imports to a market-oriented one. The self-determination of financing was introduced. All aimed at budget balancing and promoting exports. As from 1989, Vietnam began to export about 1 - 1.5 ton of rice, inflation rate gradually decreased (the rate stood at 67.4% in 1990), living standards were improved, democracy got enhanced, national defense and internal security got firmly consolidated, the external relations were broadened freeing the country from blockage and isolation.

In June 1991, the VIIth Congress of the Vietnam Communist Party reaffirmed its determination to pursue the renovation process overcoming difficulties and challenges, stabilizing political situation, pushing back unfairness and negative activities, directing the country out of crisis. The Congress also set forth the foreign policy of multilateralization and diversification the guideline "Vietnam wants to be friend all other countries in the International Community for Peace, Independence and Development".

With renovation process, Vietnam step by step surpassed many difficulties, hindrances, and achieved great results. During the 1991-1998 period, the average economic growth rate (presented by the increase rate in GDP) reached 8%. In 1999 the economy was seriously affected by the economic crisis in the region and natural calamities; it GDP growth was only 4,5%. However, economic performance is inspiring in 2000 with GDP growth of 6,7% by first nine months. By September 2000, Foreign Direct Investment (FDI) reached $ 36 billion with 2,500 projects; inflation decreased from 67.1% (in 1991) to 6% (in 2000), living standards of the majority were improved. The cultural and intellectual standard got further increased. Generally, Vietnam has made a lot of progress in the fields of education, health care, culture and art, sports, family planning, public media, and other social activities. The political situation, independence and sovereignty of the nation, national security and defense have been maintained stable, thus actively facilitating the "Doi Moi" process. The political system from central to local level was consolidated; the State's rule and law has been firmly constructed and increasingly made perfect. The foreign policy of independence and sovereignty multilateralization and diversification has brought about great results. Now, Vietnam has established diplomatic relations with nearly 170 countries, trade relations with 165 countries, and attracting foreign investment from more than 70 countries and territories.

The future

The IXth Congress of the Vietnam Communist Party in April 2001 reviewed achievements recorded during 15 years of renovation (1986 - 2001), laying targets for development by the year 2001 and 2010: focusing on promoting industrialization and modernization.

Socio- Economic strategy for 2001-2010:

Viet Nam's socio-economic development strategy for the 2001-2010 period has been defined as to accelerate national industrialization and modernization along the socialist line and build the foundation for the country to basically become an industrialized nation by 2020.

The three breakthroughs defined by the strategy to promote socio-economic development are to build uniform market-oriented economic institutions in line with socialism with focus on renewal of policy to liberate the production force and expand markets at home and abroad; make a vigorous change in the development of human resources, focusing on education-training, science-technology; renew the organization and operation of the political system, focusing on administrative reform.

The speciafic goal of the strategy are:

• To ensure that by 2010, GDP will have at least doubled the 2000 level. To increase visibly the efficiency and competitiveness of products, enterprises and the economy; to better meet essential consumption demands, and a considerable part of production and export demands. To ensure macro-economic stability; a sound international payment balance and growing foreign exchange reserves; to keep budget deficits, inflation and foreign debts within safe limits to effect positively economic growth. Domestic savings are to amount to over 30 percent of GDP. Exports are to increase at a rate more than double that of GDP growth. Agriculture is to account for 16-17 percent of GDP, industry 40-41 percent, and services 42-43 percent. Agricultural labor is to drop to around 50 percent of the workforce.
• To raise substantially our Human Development Index (HDI). The population growth rate is to have dropped to 1.1 - 1.2 percent by 2010. To eliminate the category of hungry households, and reduce quickly the number of poor households. To solve the employment issue in both urban and rural areas (to reduce urban unemployment rate to below 5 percent; and increase utilized worktime in rural areas to about 80-85 percent); to raise the trained labor ratio to around 40 percent. To ensure schooling to all school-age children; to accomplish junior secondary education universalization nationwide. To provide medical treatment to patients; to reduce (under-five) child malnutrition to around 20 percent; to increase the average life expectancy to 71 years.

Industrialization and modernization is aimed at developing Vietnam into an industrial country with a modern technical and physical infrastructure, rational economic structure, a progressive productional relationship in conformity with production level, a firm national defence and security, for wealthy people, strong country, just, democratic and advanced society.

Communist party of Vietnam –Vietnam polictics

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