A Hong Kong newspaper recently ran an article on Vietnam’s renewal process over the past 20 years, describing Vietnam as a new emerging economy with the second highest economic growth rate in Asia, after China.

Following achievements in economic reforms, the conclusion of the 10^th National Party Congress showed that Vietnam was entering a new period of political reform in Vietnam. The re-election of Party General Secretary Nong Duc Manh proved that Vietnam would continue to boost the renovation process. 

The newly-elected political bureau without the presence of State President Tran Duc Luong, Prime Minister Phan Van Khai and NA Chairman Nguyen Van An also proved that Vietnam has successfully achieved the goal of rejuvenating the party leadership. It also marked the start of reforming political institutions in Vietnam.

One of the important goals of the five-year plan, which was approved at the 10^th National Party Congress, is that Vietnam would shed its under-developed country status by 2010. At the 6^th Party Congress in 1986, Vietnam also aimed to become an industrialised country before 2020.

Since 2000, Vietnam’s economic growth has been maintained at 6-7 percent annually. Especially, the rate reached 8.4 percent in 2005, making Vietnam the second fastest growing economy in Asia, after China. Turnover of foreign direct investment per capita in Vietnam has surpassed India and China. Recently, after Intel, the world’s largest chipmaker, announced its decision in February 2006 to spend nearly US$600 million building workshops in HCM City, Microsoft Chairman Bill Gates visited Vietnam. He said that Vietnam has great potential to develop information technology and that he considers Vietnam a strategic partner for Microsoft. Mr Gates pledged further investment in the country by his company and predicted that in the next 10 years,
Vietnam will make an economic breakthrough to become a software development centre like India. With a 90 percent literacy rate, Vietnam has great potential to achieve what was forecast by Mr Gates.

After World War II, under the leadership of President Ho Chi Minh, Vietnam declared independence. By far, the number of poor people in Vietnam has been reduced to below 20 percent. Agricultural reforms have turned the country into the world’s second largest rice and coffee exporter. Vietnam’s industrial sector has developed well, becoming a new attractive destination for foreign investors. Vietnam has established trade ties with more than 150 nations in the world, and signed over 80 bilateral agreements. The country hopes to join the World Trade Organisation in November 2006.

China is one of the few other communist countries currently involved in the reform process. Vietnam is eight years behind China and therefore must seize opportunities to learn from China’s renewal experience.