Vietnam Economic Development Flashcards
What differentiated Vietnam from the other socialist economies
Government was pragmatic, flexible enough to implement capitalist model of economic development when original socialist models proved unworkable
What did the north Vietnamese government initially prioritise (heavy industry or agriculture), how did this affect the other
Heavy industry, provided the technological basis for the other sectors (such as agriculture)
What were the 2 key markers of post war economic development
- 2nd 5 year plan of 1976
- Doi moi (1986) - decentralisation, privatisation, export orientation, openness, foreign investment
What agrarian products did Vietnam produce
Cash crops (rice, rubber, coffee), coal
What was the nature of colonial rule, and by whom
French, repressive and exploitative
What was the pre and ww2 context of Vietnam (Economic exploitation, destruction, famine etc)
- Exploited by both French (colonial powers) and Japanese (during ww2 occupation)
- WW2, violent uprising against French, allied bombing led to vast infrastructure destruction
- Vietnam famine (1944-45)
What event secured Vietnamese independence
Vietminh victory against French at dien bien Phu (1954)
What was the event that led to the division of north and south vietnam
Geneva convention, 1954
What was the economic conditions from 1954-74 in the capitalist economy in south Vietnam (consider nature of fertility of land, industrialisation, foreign investment, productivity, exports, reliance on US etc)
- Fertile farmlands
- US aid: industrial zones grew, diversified into sugar refineries, textile factories, processed food factories
- US efforts to stimulate foreign investment failed (due to instability in countryside)
- Low productivity due to civil insurgencies
- Exports (esp of rice) fell drastically (from major rice exporter to rice importer during the Vietnam war)
- Completely reliant on the US
What was the economic context behind economic development of north vietnam from 1954-74 (natural resources, industrialisation, nationalisation, economic aid)
- More mineral resource rich than south (gold, iron, zinc)
- Central planning established early (1955, national plannign board)
- Rapid state led industrialisation
- Nationalisation through collectivisation, land reforms
- Extensive economic aid from soviet bloc (80% from Moscow, 20% from china) 1st
How was collectivisation carried out in north Vietnam, and was it successful, and why/why not
- area split into blocks
- rewarded with a portion of annual harvest based on quality of work
- not successful
- quality of work subjective, instead time spent on fields was counted
- farmers not incentivised to be productive, therefore production stagnated
By how much did the small private plots of land outperform state run collective farms in north Vietnam by
2-3x
How much soviet aid was provided to the DRV from 1963 to 1967
1 million roubles
How much did north Vietnam receive in total from communist states since 1954
3.2 billion 1st
What 4 kinds of policies were pursued by the SRV after reunification
- Expansion of agriculture
- Abolishment of private banks
- Foreign enterprises in industrial and manufacturing nationalised
- Foreign investments encouraged with remission of profits overseas
From what year to what year was the 2nd 5 year plan
1976-80
What was the 3 main emphasis/arms of the 2nd 5 year plan
- Focus on science and technology, mechanised agriculture
- Large scale collectivisation
- New economic zones
From what year to what year did socialist transformation in the south occur
1978-80
What were the 2 stages of socialist transformation in the south, what were they and what effect did they have
- Abolishment of private trade and manufacturing
- youth squads set up in 1978 to confiscate all private goods, government promised compensation (led to mass dissatisfaction) - Collectivisation of the southern countryside
- new management system (1978) - redistribution of land from rich to poor
- state took away all private Agri equipment
- in return for farmers meeting quota, state supplied other consumer goods and such at lower prices
Why did the 2nd 5 year plan fail (4)
- Lack of funds
- USSR less aid than promised
- sino- soviet split
- Vietnamese invasion of Cambodia (1979) - Legacy of war and lack of infrastructure
- bobbing of the north - transport infrastructure gone - Lack of economic expertise (Chinese and other pro-US communities were prevented from holding positions of responsibility)
- Resistance from rural masses
- exploited loopholes such as by reselling land to owners
- not willing to pass Agri produce to government
- exodus of Chinese
Nationwide rice production fell from what to what form 1976 to 1979
12 mil to 10 mil
What was the target harvest of the 2nd 5 year plan and what was the actual
21 million tons target, 12 million tons actual
During the 3rd 5 year plan (1981-85), what decentralisation policies were pursued
- State subsidies on food and consumer items abolished to encourage market forces
- Recognition of private sector in certain industries
- Limited decree of private commerce and profit incentive (IMEX corporations) - import export
- Increase in foreign assistance
How much did industrial production rise by (%) during the 3rd 5 year plan
10% each year
Which 2 external reasons led to the pursuit of Doi moi
- Halting of soviet economic assistance
- Continued western embargo against Vietnam
Which internal reason led to the transition to doi moi (hint has to do with the leaders)
Death of le duan and the old guard in 1986
- election of van linh - experimentalist with capitalist techniques
In which year was it announced that all centralised planning would be discarded in favour of a market oriented economy
1989
What was the name for the policy adopted to practise the agricultural sector during doi moi, and when, and how
Resolution 10, 1988
- state quotas removed, equipment could be purchased from private suppliers
From which organisation in 1984 did the government seek foreign advice
Economic and social commission for asia and the pacific
What law was enacted to allow foreign investors to operate in Vietnam extensively during doi moi
Foreign investment law, 1987
Form 1986 to 1990, by what multiple did economic growth and international trade grow by (same number)
2x
What was the gdp growth rate from 1995 to 96
9.5%
From how many kg to how many kg did per capita rice production increase y from 1987 to 1989
240 to 300kg
When did Vietnam join asean
1995
In whcih year was US embargo’s lifted
1994
Whcih law was enacted in 199 to ensure privatisation
Enterprise law - ease of establishing new companies
How did the role of the Chinese change after Doi Moi
Ethnic Chinese who fled welcomed back, played key role in private businesses
What were the 3 limitations of government strategies
- Inherent contradictions with socialist development strategies
- did not play to comparative advantage by prioritising heavy industries
- lack of incentive to mobilise labour - Lack of transparency
- bribery and corruption within authorities - Rising inequity
- uneven income - Ho Chi Minh significantly more developed than the north
Between 1993 to 1998, from what percentage to what percentage did poverty fall by, and specifically northern mountainous regions
33 to 11%
79 to 60% (less of a decrease)
In 1996, how much more (multiple) did the top 10% earn compared to bottom 10%
10x
How did the role off the government change over time
Intrusive central planning -> less direct and intrusive
