Analyzing the achievements of Vietnam's 30 years of renovation

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Explanation:

Thirty years ago, the Vietnamese government was forced to change its economic policy. The inefficiencies of the economic system led to deteriorating living conditions in the 1980s. During the 6th party congress in December 1986, the communist party decided to reform the economic system, called Doi Moi (renovation). The political elite opted for a gradual change of the economy, without changing the political system. The economic development induced by the reforms was remarkable. The living conditions of the Vietnamese have improved drastically as a consequence of high growth rates. Despite economic and social success since the introduction of reforms, Vietnam has reached now a distinctive moment. The country has to tackle five challenges in order to enhance the future welfare of its citizens. Firstly, macroeconomic stability and especially a functioning financial market is a precondition for future economic growth. Secondly, the successful catch-up model based on cheap labour as well as mineral and agricultural resources is reaching its limitations. Thirdly, a stronger spatial perspective has to be taken into account as the economic development is unevenly distributed and leaving the rural areas behind. Fourthly, environmental issues need to be considered more seriously, especially pollution from intensified agricultural production, mining, and industrialization. Fifthly, due to increasing income disparities, more attention has to be paid to social justice and participation.

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