The transformation of Viet Nam's economy in 30 years time period. The impact of "DOI MOI" in the revolutionary change in development of nation.

1. Story of Economic Miracle
Viet Nam
July 2019
Manoj Subedi

2. Content
• Background
• X-factor
• Impact on Economy
• Key figures
• Conclusion

3. Background
1975 A.D.
2019 A.D.

4. Background
• End of 20 years war
1975
• GDP $200 -$ 300
Mid 1980s’
• Economic Growth: 6-7%
• Export Total GDP
2015-2019

5. X- FACTOR: Doi Moi
 political and economic renewal campaign launched in
1986
 transition centralized economy to a "socialist-oriented
market economy”
 planning with free-market incentives
HOW???
Trade Liberalizations
Lowering Cost of Business
Doing
Huge Investment in
HDI through public
investment

6. Trade Liberalizations
1995
• Joined ASEAN free trade area
2000
• Signed free trade with US
2007
• Joined WTO
2016-
• Amended Trans-Pacific partnership

7. Low Cost of Doing Business
1986
• Created first Law on Foreign
Investment, enabling foreign
companies to enter Viet Nam
• Revised periodically to adopt
a more pro-investor approach
• Reduced administrative
bureaucracy
 From 77th place in 2006 to 55th in 2017
World Economic Forum’s Global
Competitiveness Report
 From 104th place in 2007 to 68th in 2017
World Bank’s Ease of Doing Business
rankings

8. Investment on human capital and
infrastructure
• Large public
investments in
primary
education
• Invested heavily in
infrastructure
 Job Creation
 Hub for foreign investment and
manufacturing in Southeast Asia.
 Japanese and Korean electronics
companies like Samsung, LG, Olympus and
Pioneer and countless European and
American apparel makers set up shop in
the country.
 Viet Nam was the largest exporter of
clothing in the region and the seconder
largest exporter of electronics.(Financial
Times)

9. Impact on Economy
 GDP growth has been
at least 5% per year
 GDP ten times more
than 1985 {$ 2343 in
2017}
 Making their growth
processes more
inclusive and
sustainable
 Much of its success is
based on foreign
investment and trade

11. Conclusion
 Foreign Direct Invest can be affluent in the least developed
country.
 Trade linearization with right government policies can create a
business empire within the nation
 Nepal can learn great from Viet Nam’s “DOI MOI”
 Economic Growth can be achieved only with reformation in its
policy

12. Reference
https://www.weforum.org/agenda/2018/09/how-vietnam-became-an-economic-miracle/

13. THANK
YOU!