Economy

The Vietnam War destroyed much of the economy of Vietnam. Upon taking power, the Government created a command economy in the nation. Collectivization of farms, factories and economic capital was implemented, and millions of people were put to work in government programs. For many decades, Vietnam's economy was plagued with inefficiency and corruption in state programs, poor quality and underproduction and restrictions on economic activities and trade. It also suffered from the trade embargo from the United States and most of Europe after the Vietnam War. Subsequently, the trade partners of the Communist blocs began to erode. In 1986, the Sixth Party Congress introduced significant economic reforms with market economy elements as part of a broad economic reform package called "đổi mới" (Renovation). Private ownership was encouraged in industries, commerce and agriculture. Vietnam achieved around 8% annual GDP growth from 1990 to 1997 and continued at around 7% from 2000 to 2005, making it the world's second-fastest growing economy. Simultaneously, foreign investment grew threefold and domestic savings quintupled. Manufacturing, information technology and high-tech industries form a large and fast-growing part of the national economy. Vietnam is a relative new-comer to the oil business, but today it is the third-largest oil producer in Southeast Asia with output of 400,000 barrels per day. Vietnam is one of Asia's most open economies: two-way trade is around 160% of GDP, more than twice the ratio for China and over four times India's (source: The Economist)

Workshop in Hoi An, 2001.Vietnam is still a relatively poor country with GDP of US$280.2 billion (est., 2006, source: Economist Intelligence unit). This translates to ~US$3,300 per capita. Inflation rate was estimated at 7.5% per year in 2006. The spending power of the public has noticeably increased. Deep poverty, defined as a percent of the population living under $1 per day, has declined significantly and is now smaller than that of China, India, and the Philippines. As a result of several land reform measures, Vietnam is now the largest producer of cashew nuts with a one-third global share and second-largest rice exporter in the world. Vietnam has the highest percent of land use for permanent crops, 6.93%, of any nation in the Greater Mekong Subregion. Besides rice, key exports are coffee, tea, rubber, and fishery products. However, agriculture's share of economic output has declined, falling as a share of GDP from 42% in 1989 to 20% in 2006, as production in other sectors of the economy has risen. According to the CIA World Fact Book, the unemployment rate in Vietnam is one of the lowest in the world at 2%, trailing behind only Azerbaijan, Cuba, Iceland, Andorra and Liechtenstein. Among other steps taken in the process of transitioning to a market economy, Vietnam in July 2006 updated its intellectual property legislation to comply with TRIPS. Vietnam was accepted into the WTO on November 7, 2006. Vietnam's chief trading partners include Japan, Australia, ASEAN countries, the U.S. and Western European countries.

from http://en.wikipedia.org/wiki/Vietnam