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External Liberalization in Asia, Post-Socialist Europe, and Brazil$
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Lance Taylor

Print publication date: 2006

Print ISBN-13: 9780195189322

Published to Oxford Scholarship Online: May 2007

DOI: 10.1093/acprof:oso/9780195189322.001.0001

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 Vietnam: External Liberalization, Structural Change, Economic Growth, and Income Distribution

 Vietnam: External Liberalization, Structural Change, Economic Growth, and Income Distribution

Chapter:
(p.456) 15 Vietnam: External Liberalization, Structural Change, Economic Growth, and Income Distribution
Source:
External Liberalization in Asia, Post-Socialist Europe, and Brazil
Author(s):

Le Anh Tu Packard

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195189322.003.0015

This chapter examines the macroeconomic performance and structural evolution of the Vietnamese economy following the reforms launched by the government in 1989. The chapter is organized as follows. Section 2 identifies the policy phases and major themes of the post-war period. Section 3 provides a broad historical overview of the Vietnamese post-war economy. Section 4 reviews the state of the Vietnamese economy under the centrally planned/“subsidy” period prior to the launching of the “big bang” reforms. Section 5 describes Doi Moi and the country's socio-economic performance from 1989 to 1993. Section 6 describes the more hesitant post-crisis policy stance period from 1994 to 1997, which witnessed a recovery of state finances, and the slower growth phase from 1998 to 2000 characterized by a sharp drop in foreign direct investment associated with the regional financial crisis. Section 7 analyzes shifts in the sources of effective demand. Section 8 analyzes productivity shifts and the decomposition of employment, and relates it to income distribution outcomes. Section 9 reviews social welfare and social policy issues associated with the Doi Moi reforms. Section 10 discusses what may be anticipated in the second phase of external liberalization, and Section 11 makes a conlusion.

Keywords:   economic development, economic reform, foreign direct investment, demand, productivity, decomposition, social welfare, social policy, Doi Moi

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