Vietnam’s Reforms and Economic Growth

The long-run impact of bombing Vietnam

“…Per capita income (in 2005 U.S. dollars at PPP) was only $964 in 1976, which was nearly identical to levels in Burkina Faso and below Niger and Sierra Leone in that year, placing Vietnam among the world's fifteen poorest countries in per capita terms. Numerous academic and Vietnamese government sources all confirm that the late 1970s were a period of mass deprivation, food shortages, and pervasive poverty, as the country dealt with the legacy of wartime destruction as well as sharp reductions in foreign aid (Dinh, 2003;Harvie and Hoa, 1997;Kim 1992). We conclude that it is reasonable to test for the presence of a poverty trap in this extreme setting.…”

Infrastructure Investments in Developing Economies

“…Inflation rate fell dramatically from 67.5 % in 1990 to 12.2 % in 1995 (Harvie and Tran 1997). The highest growth during the period was 9.5 % in 1995.…”

“…The first five-year socio-economic development plan was formulated for the period 1960-1965 for the north. Nonetheless, the results were limited with inflation soaring to 700 % in 1986 and the then socio-economic crisis was becoming serious at the end of this period (Harvie and Tran 1997). However, both plans pursued socialist industrialization with a major focus on heavy industry and rapid agricultural growth with the former placed at the forefront of development (Communist Party of Vietnam 2005).…”

Financial development and economic growth in Vietnam

“…Although numerous new banks have entered the banking sector, most are small and the sector has remained dominated by the SOCBs. By the end of 1993, the SBVN accounted for almost 45% of total financial assets in the system, the SOCBs accounted for 49.5% and the other banks only 5.5% (Harvie and Hoa 1997). Consequently, the banking system remained lacking in both competition and innovation and hence Vietnam was regarded to be a substantially "underbanked country".…”

“…In early 1994 the number of banks had risen to 60, including SOCBs, shareholding and joint venture banks, a large number of credit cooperatives and people's credit funds. Foreign banks have also been allowed to enter and operate in Vietnam and by September 1995 the number of foreign bank branches and representatives offices had increased to about 20 and 60 respectively (Harvie and Hoa 1997). The reform in the financial system resulted in the establishment of a large number of banks and branches during the mid 1990s, many of which were designed to promote domestic investment by providing services to both foreign and domestic entities operating in the country.…”