Transcript Vietnam
Vietnam Transition from Socialism and Awakening Capitalism • Over 82 million people but only 25 percent urban • Population clusters in Mekong delta and Red River Valley • Ruled by China 1000 years • Conquest of Vietnam by France began in 1858 and was completed by 1884. • Declared independence from France in 1945 culminating victory in Dien Bien Phu in 1954 • Viet invasion of Cambodia 1978-79 brought isolationdependence on Soviet Union • One of few surviving Leninist states People Structure of the Economy • Poor, densely-populated country forced to recover from war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy • 1997 Asian financial crisis highlighted problems but rather than reform, reaffirmed the government's belief that shifting to a market-oriented economy would lead to disaster. GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in 1999. • New leadership in 2001, Vietnamese have reaffirmed commitment to economic liberalization, implement structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Structure of the Economy • Agriculture 1994- 67% 2004- 24% • Industry 1994-12% 2004- 37% • Services 1994- 21% 2004- 39% Agrarian Economy Gradually Transitions to Industry Hanoi • Situated in the Red River Valley at confluence of three rivers-easily defended • Fertile soil for rice cultivation basis of food regime • Captured by Han dynasty and endured 1000 years of Chinese rule • 11th Century after Viet independence Thang Long capital and political focus • But also commercial and manufacturing hub with Red River outlet to South China Sea • Repeated Chinese incursions but in 1428 Chinese were pushed out • Viet Nam rapidly expanded south to the Mekong delta and to the Gulf of Siam • Thang Long (Hanoi) took on character of an imperial city on the Chinese model Hanoi • But by 17th C Le dynasty power declined- noble families N&S dominated • Expanses of cultivable land and climate more favorable to agriculture, South took on new character • Northern provinces highly traditional and inward lookingfocus on wet rice • South with many tropical products became linked to major trade network to China, Japan and Korea • South became less traditional , more entrepreneurial, more prosperous and more in touch with outside • Cultural split between the two regions became intensified and eventually would have impact during colonial and Cold War eras Hanoi Buddhist Temple and Opera House Hanoi Old Quarter- 36 Streets • French colonists filled in the canals to create a network of 36 narrow streets that quickly acquired the name of the commodity traded there. • Bat Dan Wooden Bowls • Bat Su China Bowls • Cha Ca Roasted Fish • Chan Cam String Instruments • Cho GaoRice Market • Hang Bac Silversmiths • Hang Bong Cotton • Hang But Brushes Ho Chi Minh City-aka Saigon • Economic heart of Viet Nam 1980> 3.4 mil 2003> 5.7 mil • Entrepreneurial dynamism • French colonial architecture combined with new skyscrapers • Main locus for foreign investment Economic Reform or Renovation: Doi Moi • Dismantling of economic communes or collectives • Reallocation of land use for family farms • Opening country to foreign direct investmentrecognize value of market mechanism • Reform of banking sector • Establish real interest rates>>>Savings • Direct subsidies to State Owned Enterprises (SOEs) ended Development Strategies and Problems • Since 1987 New Economic Zones established to redirect and resettle migrants to rural areas from citiesland in highlands- limited success • Unprofitable state enterprises cut loose- no longer restricted by govt set prices and quotas • Encourage foreign capital and investment • Encouragement of entrepreneurship allowing private business to operate • Mekong River Commission – designed to support joint activities among Indochinese states- harnessing river for power, navigation, flood control, fishing and tourism • Greater Mekong Sub region- infrastructure improvements needed to integrate several economies