During the five years to 2015, the economy of Vietnam overcame many difficulties, however, its high growth rates continued and the basic macroeconomics remained stable. The average GDP growth over this period remained at 7%, total public investment in the total volume grew two and a half times and amounted to 42.9% of GDP. The financial crisis is raging in the world, but the inflow of investments into the country was ensured, and therefore the Vietnamese economy survived. Moreover, in 2010, GDP amounted to $ 101.6 billion (3.26 times higher than in 2000), while in 2015, per capita GDP reached $ 1, 168.
Sectors and sectors
Vietnam's economy is rapidly developing almost all of its industries and sectors. Agriculture is pleased with a steady increase in its contribution to the country's economy, especially with regard to food production, and - not least - it fully ensures the food security of the state.
Compared with the previous period, the living standards of the peasantry, and the rural economy of Vietnam as a whole, increased. Investment in construction saved the situation, infrastructure improved, jobs were created, hunger was eliminated, and poverty decreased significantly.
Agriculture and industry
Large funds were also invested in new crop varieties with good quality, along with the development of industrial clusters and craft villages to increase the growth of agriculture in Vietnam. The industry has also been actively developing with the direction of diversification and improvement of quality, the competitiveness of products has constantly increased.
Vietnamese enterprises, successfully balancing between supply and demand, expanded the geography of export markets and supported domestic efforts with all measures. Investments were also directed to the development of a number of new industries for the country. High technology is applied at enterprises in all sectors of the economy of Vietnam. The service sector is growing at a steady pace. GDP growth is shown in the following illustration.
What was done
State regulation of the economy in Vietnam is not tough. The creation of institutions that improve the market economy in its socialist orientation continues. The Communist Party (KPV) has received a course for renewal, and it has already been drafted by law. Therefore, the business and investment climate has improved significantly, various types of markets continue to take shape, and Vietnam's economic indicators are becoming significantly higher, and the economy itself is becoming mixed.
State corporations are gradually being formed; for this, the activities of companies are consolidating, and certain results have already been achieved in this process. For example, the number of companies in the country was 2.3 times higher, and their capital was 7.3 times higher than five years earlier. The joint-stock form of companies is very widespread. The development of the sphere of culture, training, education, technology and science also contributed to this growth. Great attention is paid to the protection of nature - its resources, even the industry of Vietnam is lagging behind in importance in comparison with this task.
Education
The state budget now spends on training and education up to twenty percent of all expenditures, with particular attention to remote regions where the socio-economic situation is more complicated, as well as to places where national minorities live compactly. By 2010, all the cities and provinces of Vietnam were covered by the standard of incomplete secondary education, and in 2015 the skilled workforce already accounted for up to forty percent of the total.
Rapidly developing and making an extremely large contribution to the Vietnamese economy, research activities, accompanying scientific and technological progress and the emergence of new technologies. Scientific departments have almost mastered the mechanism of autonomy, a market for science and technology has formed, which significantly increases investment in this industry.
President of Vietnam
In 2016, Chiang Dai Quang, professor, doctor of philosophy and jurisprudence, was elected the tenth president. He worked for a long time in the structure of the Ministry of Internal Affairs of Vietnam and on the party line, he was a deputy. The President of Vietnam has a lot of concerns. He publishes decrees, laws, the Constitution, commands the country's armed forces, appoints, dismisses, recalls the chief prosecutor, chairman of the supreme court, prime minister, vice president, as well as any member of the government, if there is a reason in the form of a decision of the national committee meetings.
It is the president of Vietnam who can declare war and amnesty (on the same basis - the decision of the committee of the National Assembly), general or partial mobilization, martial law, and so on. The president is also involved in diplomatic services, making decisions on ranks, ranks and appointments, as well as awards. Only the president can appoint or withdraw a plenipotentiary diplomatic representative. He negotiates, receives diplomats from other states, concludes agreements, terminates them (sometimes after consideration by the National Assembly). The deprivation of citizenship and the adoption of citizenship are also under the jurisdiction of the president; he also decides the questions of pardon.
Market economy
All the achievements that have been listed above are the result of a very competent leadership on the part of the Communist Party, which the Vietnamese people trust, and therefore make great efforts. Economic development was ensured by favorable conditions. And first of all, this is the formation of a diverse economic system in line with a market economy. A policy of multistructure, a variety of forms of ownership, a real renewal of socialist postulates - all this helped to create a system of economic entities.
The administrative-planning management mechanism was smoothly and smoothly replaced by a market one. For a long time, state-owned companies and cooperatives coexisted with emerging business entities based on private property or foreign. Thus, the market economy was formed quite quickly and painlessly, in contrast to the path traveled by the Russian Federation, which abandoned all previous values, including following socialist dogmas.
Silent Tiger
Everyone knows about the incredible economic leap of the countries of Southeast Asia, for which they were nicknamed the East Asian tigers. Vietnam did not enter this four, and the media did not blow the whole world about the colossal successes of the Vietnamese economy. However, this country gradually caught up with neighbors in all respects. Moreover, the future of Vietnam seems to many experts brighter than that of the same South Korea. The thing is the gradualness of such a breakthrough.
State-owned companies concentrated deliberately, at first in key sectors and sectors of the economy, received permission from the state for entrepreneurial activity, and thereby acquired independence as subjects of a market economy. Over all these years, renewal of the state-owned enterprise increased the cost of equity by 7.22 times, and its volume grew by 12.88 times. State-owned companies strengthened, which created the material basis for normalizing social and political problems, and the business environment became stable. That is, the state not only regulated the market, it constantly worked to expand and stabilize it.
Private sector
Now a few numbers. The non-state sector in the total value of companies grew 76.84 times, and companies where the basis is foreign capital grew 10.36 times. Jobs in the private sector are also impressive in number; it has become 6.37 times more. Companies using foreign investment also attracted a lot of people, but still a little less, their number grew by 6.25 times.
The volume of capital in non-state companies grew 8.95 times. Cooperatives gradually reoriented to support small businesses and the provision of services. Due to such a shift in the structure of the economy of Vietnam, the number of business entities has increased, and therefore conditions have been created for the efficient development of resources - both external and internal.
State role
In all these years, while there was a renewal, the state and the functions of its economy have progressively adapted to enter market relations as smoothly as possible. The regulatory function passed from direct participation of an administrative regulatory character to a legislative one, which took into account both politics, strategy, and plans for social and economic development. New macro-management tools have appeared.
The state now does not directly intervene in production activities, it is focused on creating a business environment and legal basis. The state also invests in the development of infrastructure, and economic policy is entirely based on market laws. Such methods could not but bring a positive effect, because they allow you to quickly respond to external and internal instability, and also contribute to solving the most pressing social problems, which were thus defeated. The main ones are hunger and poverty. And this was in the country quite recently.
Vietnam currency exchange rate
In the past few years, the course has not changed significantly, it has long been quite stable. Vietnamese money is Dong. Today, the currency of Vietnam is as follows. For 1 euro in December 2017, you can get 26, 735.60 dong. For one hundred rubles - 38 593.90, and for one dollar - 22 704.00 dong. The numbers are too long, so it’s quite difficult for tourists to count them. However, it is necessary. One of the most actively developing sectors of the economy of Vietnam is just tourism.
The guests of the country, first of all, of course, study the local money. They can be in coins here, or they can be in banknotes. There are almost no coins in circulation, and if a tourist comes across a metal Vietnamese money, he stores it as a souvenir. Banknotes are not paper, but plastic, durable. They look nice, pleasant to the touch. There are different virtues, as elsewhere: 100 dongs, 200, 500, 1000, 2000, 5000, 10, 000, 20, 000, 50, 000, 100, 000, 200, 000, 500, 000. In two bills, there’s a million at once.
