Background
1. Vietnam, which now has a population of about 87.8 million, of whom, 94% are in the age group of 0-64. Through the adoption of its “DoiMoi” policy, Vietnam has progressively transitioned from a centrally planned economy to a market economy. The country has experienced an average growth rate of 7.3% per year in the 2 decades from 1991-2010, with average per capita income increasing from US$118 in 1991 to its present level of nearly US$1,200, which qualifies the country for middle income status for the first time. The reforms to attract investment flows from the private sector and foreign capital flows have been contributing to economic restructuring and driving rapid economic growth. During the period 1991-2010, the share of agriculture, forestry and finishing in GDP fell from 40 to 20 per cent, while the share of industry and construction increased from 24 to 41 per cent. Vietnam has also been relatively successful in achieving both economic development and social advance. The poverty rate, as measured according to the national definition of poverty, has declined from over 60% in 1990 to approximately 35% in 1998 and to less than 10% in 2010.
2. Over the last 2 decades, Vietnam has gradually developed a new legal system, which is relatively consistent and comprehensive, particularly the economic – financial legal framework, which essentially meets the requirements of a market economy, and the requirements of active and effective integration into the global economy while maintaining an appropriate degree of State regulation.
3. During the economic recession in 2009-2010, the Government took timely steps to relax its fiscal and monetary policies so as to stimulate domestic demand and investment, with the result that the economy recovered quickly from the recession. Nevertheless, it is a great challenge now and in the future for Vietnam to improve the balance of its economy so as to combine macro-economic stability with rising economic productivity, thereby providing the foundation for sustainable economic development and resilience in the face of world economic fluctuations while maintaining sustainable growth.