An Investigation of Vietnam's Barriers of Economic Growth and Development

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An Investigation of VIETNAM'S Barriers of Economic Growth and Development

Over the past few decades, Vietnam has made remarkable recovery from the damage of war and political reforms. Under Vietnam's communist party, the country's economy has transitioned from a centrally planned economy to a socialist-oriented market economy. Making it a multi-sectored commodity economy regulated by the people, whilst under state management and ownership. Numerous reforms, along with the modernization of the financial system, have led to rapid growth for Vietnam economically.

In 2010, the Gross Domestic Product (PPP) of Vietnam was $275,639 million and ranked 40 out of 182 listed countries according to the International Monetary Fund. This is most likely due to rapid industrialization that has and is taking place. Industry and construction contributed approximately 40.9% of GDP in 2010 whereas the share of the agriculture sector has fallen to 21%.

Although the rise in GDP has brought about a decline in poverty, larger school enrolment rates, bettered infrastructure, etc, this rapid growth rate has also brought with it negative factors that may hinder subsequent economic growth and development. For instance, Vietnam is facing large budget and trade deficits. In 2010, the