April 30, 1975, was a watershed in the modern history of Vietnam; Saigon (the capital of southern Vietnam, its current name “Ho Chi from him”), was liberated from the American occupation after a devastating war that lasted for more than 20 years, behind which deep human tragedies left behind, and caused the killing of at least two million Vietnamese civilians, as well as the destruction of infrastructure and the displacement of millions.
The United States has lost about 58,000 soldiers in that war, which the British Guardian newspaper described as one of the most humiliating events in America’s modern history.
After the war, more than 1.5 million people fled the country, causing a stifling refugee crisis along with millions of displaced people inside the country. The war also left long -term health effects as a result of the use of toxic chemicals, as well as huge quantities of unexploded munitions that still threaten the lives of the population to this day.
Poverty and hunger everywhere
After the end of the war, Vietnam found itself mired in poverty and economic collapse, as more than 70% of the population lived below the poverty line, relying on a fragile agricultural economy and devastating infrastructure.
The GDP of the individual in 1984 did not exceed 200 to 300 dollars annually, which made the country classified among the poorest countries in the world, according to the World Economic Forum. Strict central policies, such as the abolition of private ownership and bureaucratic mismanagement, have increased the complexity of the crisis, as well as the American economic blockade imposed after the war.
How did Vietnam overcome poverty?
To face the grinding economic challenges, the Vietnamese government launched in 1986 the “Di Moui” program, which means “renewal”, and was aimed at moving from the central economy to a socialist market economy.
Reforms included the liberalization of trade, the encouragement of foreign investments, the dismantling of agricultural cooperatives, and the granting of land ownership rights to farmers. This program contributed to a fundamental shift in the Vietnam economy, and the per capita GDP from less than 700 dollars increased in 1986 to nearly 4,500 dollars in 2023, while the poverty rate decreased from about 60% in the early 1990s to less than 4% in 2023, according to the World Bank.
The basic pillars of the “Moy” program
- Editing agriculture and dismantling cooperatives
The Vietnamese government issued Resolution No. 10, which granted farmers the rights to use agricultural lands for long periods, which allowed them to freedom of production and marketing, and resulted in a significant increase in agricultural productivity.
In 1993, cooperative lands were redistributed to farmers for free, which helped Vietnam to shift from a hunger country to one of the largest food exporters in the world, according to the Food and Fertilizer Technology Center in Asia and the Pacific Ocean.
In 2008, Vietnam exported 4.7 million tons of rice, becoming the second largest rice exporter after Thailand, and these exports also contributed to a global food crisis that year, according to the Global Asia platform.
- Repairing state -owned companies
The state gave greater independence to government companies, focused on profitability and efficiency, while losing companies were encouraged to restructure or privatize. The Asian Development Bank confirmed that these measures were a basic pillar of the transformation towards the market economy.
- Private sector support and constitutional amendments
In 1988, the government recognized the private sector as a major component of the national economy, while ensuring property and inheritance rights. The constitution was amended in 1992 to consolidate these rights.
- Integration into the global economy
Vietnam joined the Association of Southeast Asian Countries (ASEAN) in 1995, then to the World Trade Organization (WTO) in 2007, and signed many free trade agreements, which strengthened its integration into the international economy, according to Vietnam Plus.
- Opening the doors to foreign investments
In 1987, the government issued a law for foreign direct investment, which included the establishment of joint projects or companies wholly owned by foreigners, with tax incentives and guarantees against nationalization.
The most prominent foreign companies invested in Vietnam
According to Vietnam Breving and Reuters, Vietnam attracted huge investments from international companies in the technology and manufacturing sectors, most notably:
Samsung:
- Strip: electronics.
- Investment volume: $ 22.4 billion in 6 factories and a research and development center, with an additional investment of $ 1.8 billion for the “Olide” factory in Back Network.
LG Display:
- Strip: electronics.
- Investment volume: $ 5.65 billion.
Amkor Technology:
- Strip: semiconductor.
- Investment volume: $ 1.6 billion.
Spacex:
- Strip: Internet satellite.
- Investment volume: $ 1.5 billion.
Foxconn:
- The sector: electronics manufacturing.
- Investment volume: $ 80 million to create an integrated circuit factory in Back Jiang.
Vietnam is the next industrial center in the world
Thanks to an attractive business environment, a strategic location, a skilled labor force, and continuous government support, Vietnam is occupying an advanced position as a regional and global industrial center.
The manufacturing sector constitutes more than 20% of GDP, according to the “Vietnam Investment Review” report. This position is attributed to:
- Investing in human capital and modern technologiesTraining 50 thousand engineers in electronic chips by 2030, and developing technical education in partnership with international companies.
- Free trade agreementsThe most prominent of which is with the European Union, as exports increased by 50%.
- Take advantage of the “China +1” policy: Vietnam is an alternative destination for companies that seek to reduce its dependence on China.
- Competitive workforce: Skilled and low -cost compared to its neighbors.
Features of the Vietnamese economy in 2024
Despite the global challenges, the Vietnamese economy continued its steadfast growth in 2024, according to “Vietnam Brefing” and the General Statistical Office:
- gross domestic product: $ 476.3 billion, at a growth rate of 7.09% compared to 2023.
- The per capita GDP: $ 4,700 (an increase of $ 377 over 2023).
Economic sectors:
- Services Sector: 49.46% of the output, 7.38% growth.
- Industry and Building: 45.17%, 8.24%.
- Agriculture, forests and fisheries: 5.37%, with a growth of 3.27%.
Trade is the cornerstone of the economic renaissance
Vietnam’s foreign trade in 2024 was more than 786.29 billion dollars, with a trade surplus of 24.77 billion dollars:
- Imports: $ 380.76 billion (16.7%increase)
- Exports: 405.5 billion dollars (14.3%increase)
As for foreign direct investment, it amounted to 38.2 billion dollars, despite a slight decrease of 3%, according to the foreign investment agency.
Vietnam has proven that political will and radical reforms are able to transform the path of a whole nation. From a state exhausted by wars and torn crises, Vietnam was able to rise from the ashes of history to the heart of the future, thanks to a long -term economic vision and smart investment in humans and infrastructure.
Vietnam is no longer a developing country looking for an opportunity. Rather, it has become a promising industrial center in the world of technology and supply chains, attracting billions of dollars annually, and provides a role model in sustainable economic development.
