Vietnam is Back

Last we heard of Vietnam was probably in the history textbooks with the war and French colonization.

Vietnam is a booming economy in Southeast Asia, growing rapidly in the past few decades. Even though Vietnam united under communism and authoritarian socialism (well I mean check out their name - it's the Socialist Republic of Vietnam), there have been  significant changes as the government embraced capitalism and the free market in 80's and really started upgrading infrastructure, restructuring within, and establishing a stronger global presence.

More and more, we are seeing items produced in Vietnam, like Nike Products. It seems that Vietnam is just following in China's footsteps. After Deng Xiaoping's economic reforms in the 80's, China opened up again and has been on a rise. Vietnam did the same with its Doi Moi (Đổi Mới) in 1986 to create a "socialist-oriented market economy". Like in China, the government controlled the economy from imput to output, and regulation of trade. The original plan was to create a vertically-integrated economy. However, this plan was abolished after the 6th Party Congress, since there were ongoing national problems like 700% inflation. There were many levels and stages to reforms, and it was mostly the legal part first that was reformed. New kinds of firms were allowed to be created. In a few short years, Vietnam was transformed from an agrarian and stagnant economy into a vivacious market-driven system.

So while economy certainly has boomed, it does come at a cost to workers employed by foreign companies like Nike or Adidas, which have come under increased  scrutiny for  unfair labor practices  like low wages and poor working conditions. In a sense, it's the U.S. at the turn of the 20th century (remember the Gilded Age?). It's also like China, which opened up around the same time.

But, the undeniable truth is that the changes in Vietnam's economy had societal implications: more rights and freedoms were granted to people, as they were allowed to move freely and control their own profits. Though Vietnam is still behind developed nations in so factors, it is catching up and everything seems like it will improve. I mean, just look at its tourism. Cities are lighting up in colors as industry keeps on being fueled.

http://humaniteinenglish.com/spip.php?article1230

https://ideas.repec.org/p/sol/wpaper/09-027.htmlhttp://www.gso.gov.vn/default_en.aspx?tabid=472&idmid=3&ItemID=15939