The Vietnamese economy has experienced a downturn in growth since 2008. In the past five years, the growth averaged about 5.5 per cent a year and is not expected to be much higher in the coming years. For a country of per capita income of about US$2000, that rate of growth is low. Increasing the rate of growth to somewhere in the vicinity of 8 per cent a year is imperative if Vietnam is to avoid the so-called middle income trap.
Since 1976, Vietnam has been controlled by the Communist Party. Till recently, its rule and legitimacy had never been challenged. Recent civil movements however suggest that Vietnamese are gradually rising up against the party, hoping to transform the nation from a one-party state into a democracy.
Vietnam’s political culture is gradually transforming from totalitarianism to pluralism. Why? Because an emerging and independent civil society is openly challenging communist party rule.
Vietnam is a Lower income economy comes under the East Asia and the pacific region, as to the classification made by the World Bank on the basis of income and region for the year 2006.
Agriculture, Industry and services sector have equal importance in the contribution to the total Gross Domestic Product in the country. The tourism sector is doing well in the recent years.
Vietnam is a developing country that in the past three decades has spent tremendous effort in recovering from the devastation from the Vietnam War. Other challenges that this country has seen is the loss of financial support from the old Soviet Bloc and a centrally planned economy with too much rigidity. However, since 2001 the government of Vietnam has been dedicated to economic liberalization, along with international integration.
