Vietnams Economy

Question 1

North Vietnam Economy (45-75)

Answer 1

Strategy: gradual reform in land
Acknowledged peasants ownership of land; five percent plots
But overall formation of agricultural cooperatives

Effect:
Private plots produced 2-3x the yields of state run farms

Question 2

Economy under SRV(75-86)

Answer 2

Strategy: Triple revolution (collectivisation, nationalisation and agricultural)
New Economic Zones (NEZs)
Redistribution of land (Equity) under collectivisation based on equality and not efficiency
Production cooperatives formed

Effects:
Only 0.6% of Mekong Delta joined
Rice production fell 20%
National income declined 2% annually

Question 3

Economy under SRV (86 onwards)

Answer 3

Strategy: Doi Moi
Gradualist and politically stable reforms, strictly limited to economy
Began reaching out to international community; BTEs lowered and negotiations with ASEAN
Agricultural reforms; privatised agriculture sector by guaranteeing a fifteen year tenure on land
1987 Investment law establishing EPZs; import materials, low cost labour
JV Protections against nationalisation

Effects:
Vietnam emerged as major rice exporter (third largest)
GNP grew by 8.2% per annum
10% growth rate

Question 4

Flaws of Vietnam Economy (86-2000)

Answer 4

Equity: uneven development in south and north; southeast poverty dropped from 33-11% but only from 80%-60% in north
+ corruption in inefficient SOEs