Vietnam Economy

Topics: Economy, Globalization, Economic development Pages: 9 (3046 words) Published: April 12, 2011
I. Introduction

The world is witnessing the decisively drastic changes of the global economy, especially in recent years of the new century – globalization era. Overcome the difficulties and financial crisis which has left chronic consequences needed years to surmount. The global economy is more and more developed which express new face together with the process of global integration is more and more increasing. The trend of global integration, over the challenges that countries have to face is bringing a unique opportunity for the development and integration into the global economy as well as empowering all nations, especially developing countries. Vietnam has become a member of the World Trade Organization (WTO) in the early 2007. In this new status, Vietnam is attempting to accelerate  the integrated process more extensive, comprehensive and swift into  the world economy and the region. The position as Membership of WTO created equal development for Vietnam and the ability to access to new more favorable opportunities and development in the future. Proudly, Vietnam has already for receiving both such challenges and chances. In our research, we make every effort to analyze two big issues on the future of Vietnam’s economy. Firstly, we are going to clarify which opportunities for explosive development opened to Vietnam within the broad environment of deep integration in the coming years. Secondly, we also categorize what Vietnam need to apply innovative policies to take advantages of opportunities for remarkable development effectively.

II. Discussion of findings
1. International context and the prospect for a breakthrough of Vietnam 1.1. A shift to knowledge economy

Firstly, the presence of a new productive force plays a decisive role in the development of the modern world. It is knowledge - human intelligence. Instead of land, natural resources -  natural advantages which have a decisive role in the economy of traditional agriculture, and instead of financial capital, which is decisive advantage in the classically industrial economy; in the knowledge economy, basic advantage of any economic entity is human intelligence. Unlike most resources that become depleted when used, information and knowledge can be shared, and grown through application. Which country develops faster and in more informative knowledge economy will tend to make great advances in development. Second, the operation of a knowledge economy is based on a new principle: high-speed. In the modern world, speed is a dominant attribute. High speed opens up many opportunities. But on the other hand, it is associated with the unpredictability of the process. It requires entities to have thinking capacity at the level of national strategy, quick reaction and the ability to adjust in the rapid change in any circumstances. High speed of the transformation means a quick shift of the structure and technologies. In the face of rapid technological change, an economy or a company may take a shortcut. This is an opportunity for less developed countries to catch up more developed ones. Companies in Vietnam need to choose that strategy to boost the development. (Cong Thuong, 2009). However, the "catch up" by taking shortcuts also contains risks. This situation stems from a conflict between the demands for jump, which are great financial potential, high level of ability to access to technology, intelligent and effective government, powerful business systems, and one side is the and effective government, powerful business systems, and one side is the insufficient capacity of less developed countries to meet the requirements (including Vietnam). The sooner of these steps in the process of industrialization and modernization, the greater the degree of risk.

1.2. New system of international labor division and capability of developing in global network.

Globalization creates a new structure for the development process – the structure of global...
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