Despite efforts at industrialization after 1954, agriculture remains the foundation of the economy. The 1998 Vietnam Living Standards Survey showed that over 70 percent of the total population engaged in farming or farm-related work. Vietnam imports few basic agricultural commodities, and the majority of the items people consume are grown or produced in Vietnam.

>>Food in Vietnam

Land Tenure and Property

The Vietnamese government, in line with socialist ideology, does not legally recognize private land ownership. Since the early 1990s, the government has made moves to recognize de facto land ownership by granting individuals long-term leaseholds. This trend received more formal recognition with the passage of the 1998 Land Law. Control over land is extremely contentious. With the recent growth of a market economy, land has become an extremely valuable commodity, and many cases of corrupt officials illegally selling land-use rights or seizing it for personal uses have been reported. Ambiguities in the law and the lack of transparent legal processes exacerbate tensions and make land disputes difficult to resolve.

Commercial Activities

Vietnam Economy

Vietnam Economy

Agricultural and manufactured products are sold both retail and wholesale. Cities, towns, and villages all feature markets, most of which are dominated by petty traders, normally women. The most commonly sold commodities are foodstuffs and household items such as salt, sugar, fish sauce, soaps, clothing, fabric, tableware, and cooking implements. Major purchases such as household appliances, bicycles, or furniture are often made in specialty stalls in larger markets or in stores in towns and cities. Currency is used for most transactions, but the purchase of real estate or capital goods requires gold. The number of open market wage-laborers has increased in recent years.

Major Industries

Industrial output is evenly split between the state-owned, private, and foreign sectors. Since the late 1980s, Vietnam has actively promoted foreign investment, resulting in a very rapid growth in output by that sector. International corporations have been most active in mining, electronics assembly, and the production of textiles, garments, and footwear, usually for export. Corruption and an unclear legal system have severely limited Vietnam ability to attract additional foreign investment since the 1997 Asian financial crisis. Vietnamese state-owned factories produce a number of commodities for local consumption, such as cigarettes, textiles, alcohol, fertilizer, cement, food, paper, glass, rubber, and some consumer appliances. Private firms are still relatively small in size and number, and are usually concentrated in agricultural processing and light industry. Many complain that state interference, an undeveloped commercial infrastructure, and a confusing and ineffective legal system inhibit their growth and success.

Trade

Vietnam’s international trade relations have grown considerably since the early 1990’s. Major exports include oil, marine products, rubber, tea, garments, and footwear. The country is one of the world’s largest exporters of coffee and rice. It sells most of its rice to African nations. Its largest trading partners for other commodities include Japan, China, Singapore, Australia, and Taiwan.

Vietnam Economy

Vietnam Economy

Division of Labor

Vietnamese of all ages work. As soon as they are able, young children begin helping out around the house or in the fields. Men tend to perform heavier tasks, such as plowing, construction, or heavy industrial work while women work in the garment and footwear sectors. Individuals with post-secondary school educations hold professional positions in medicine, science, and engineering. The lack of a post-secondary education is generally not a barrier to occupying high-ranking business or political positions, though this had begun to change by the late 1990s. National occupational surveys show that only slightly more than 16 percent of the population is engaged in professional or commercial occupations, while just under 84 percent of the population is engaged in either skilled or unskilled manual labor.

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