Assignment
jang.yu
Vietnam1.pptxVietnam
Background
Was French colony
War for independence began in 1955 >>> rebels took control of North (recognized by USSR and China). US/France took control of South
Vietnam war – US left in 1973. Unification of South and North in 1975.
Estimated 2m-4m Vietnamese dead, 1/2m Cambodians
War crimes – napalm, agent orange, bombing of villages, atrocities by US and S. Vietnam government
Contemporary impact
1000s still killed by unexploded ordnance
10% population disabled
Much of agricultural land still contaminated
Agent orange >>> relatively high rates of cancer and birth defects
Post-war
Established socialism
Most enterprises state owned
Emulation of China – workers paid in-kind, poor but little inequality
Population mostly rural
Most trade with USSR and China
Doi Moi
Breakup of USSR and shift to markets in China >>> economic crisis
World Bank offered $1.5b grants if SOE’s privatized, but government refused
Began Doi Moi - reforms to create “market socialism” in late 1980s - mid-1990s
Reforms gradual
Sold 1/3 SOEs
Allowed FDI and majority foreign ownership of domestic firms
Doi Moi
Decollectivization of agriculture and distribution of land to rural households, though land still owned by state (similar to China)
SOEs remained, though could retain profits and make decisions independent of planning agencies
Most prices decontrolled
Loss of jobs in SOEs
Market socialism
Communist party wanted to “advance socialist relations of production commensurate with the development of productive forces.”
Hoped that, as long as could maintain high levels of investment, could unite both pro-market and communist partisans
Retained state ownership in:
Finance (state banks hold 94% of bank assets)
Telecommunications
Transportation
Heavy industry
Land and natural resources
Good that affect broad economy (cement, steel, oil)
Economy today
Over last decade, average annual GDP growth – 5%
Per-capita GDP (PPP) around $8000 (same as India)
Tripled since 1990
Exports increased since 2000 10x
Exports:
Oil, fisheries and primary agricultural products
Mfd goods – 40% Samsung phones, other electronics, footwear, garments
2000 – Normalized relations with US
2007 – Joined WTO
2015 – Joined ASEAN Economic Community
Most X to China, Korea, Japan, Australia
Imports machinery and industrial inputs
CAB > 0, mostly due to primary product exports
Unlike Bangladesh, Vietnam has sought out FDI and most mfd goods produced by subsidiaries of foreign firms, not by local sub-contractors
Intel, Nike, Canon, Samsung all active in Vietnam
Privately owned local firms mostly small or medium scale enterprises
Labor
Minimum wage = $180/month. 3/4 living wage for individual in industrial areas.
Avg. manufacturing wage about the same.
Wages have doubled since 2007 and increased by 25% in last 4 years.
Unemployment rate = 2.2%
42% population employed in agriculture, 25% manufacturing, 33% services
Labor standards
Government passed Vietnam Labor Code in 1994
Ratified most ILO conventions and others adopted in Labor Code
48-hour work week, 8 hours/day. Max. 30/month overtime with 1-1/2 pay (more for holidays and regular days off.)
Government encourages skill development and requires minimum 5% increase in pay with acquisition of new skill.
Unions allowed in law, but most workers belong to Vietnamese General Confederation of Labor (VGCL)
VGCL provides legal education for workers, labor laws and rights.
Strike wave in early 2010s, but education in labor law reduced strikes
Most strikes against foreign firms.
Labor laws are enforced, in keeping with some continued adherence to socialist ideals, but effort to attract FDI >>> conflict
Social Conditions
Social indicators exceed most countries at similar level of development. Much improvement occurred before Doi Moi, when health clinics and schools established in most villages
Gini index = 36
Life expectancy = 76 (WHO)
Poverty rate (World Bank) = 6% (highest in rural areas)
Infant mortality = 17/1000
87% children immunized
95%(urban)/75%(rural) improved water and sanitation
99% have electricity
Education
97% youth literacy
96.5M/93.5F literacy
97% youth in primary ed/81% in secondary ed
Over past decade has doubled number of colleges
Recent efforts to privatize some schools (and child care centers) faced wide opposition
Social spending
10% GDP on health and welfare
87% covered by national health system. Costs $0.33/month
70% covered by public pensions which replace 75% of prior wage after 30 years working.
Status of women
Ranks 87/153 on gender gap index
High in economic factors:
Female LFPR = 79.1. Ranks #1 in % female professional and technical workers and #8 in income earned by women.
#1 in % women enrolled in college
Fertility rate = 1.8 (so aging population)
112M/100F at birth
Ranks near bottom in political representation of women
Environment
According to World Bank, Hanoi and Saigon are among the top 10 worst cities affected by air pollution
Mining and aftermath of war >>> water and soil pollution.
Timber and fishery industries becoming unsustainable
Recently, gov’t making large investments in wind power
