IN TERMS OF ECONOMIC GROWTH, THE COUNTRY CAME IN SECOND PLACE IN ASIA, JUST AFTER CHINA

Modern Vietnam is one of the most dynamic and rapidly developing countries in Asia. The main goal that the state leadership has set for the people is to accelerate the country's industrialization and modernization. The latter refers to the introduction of modern technologies in all sectors of the economy, the development of science, and informatization.

Let us note, however, that modernization by and large does not concern the political structure of the country, and we are not talking about radical political reforms. In accordance with the "Development Strategy" of the country by 2020 developed with the direct participation of the leadership of the Communist Party of Vietnam. Vietnam should become a modern, industrially developed state, and in the long run - in the XXI century - Vietnam " ... should be on a par with the developed countries of the world." "Now there is a chance that we must take advantage of," said Nong Duc Man, General Secretary of the CPV, at the ninth Party Congress, " to overcome all the challenges and trials, to develop powerfully in the new century, so that the twenty-first century will become a century when our people will continue to achieve major victories in building socialism and defending the Motherland, and put our country in a better position on a par with the developed countries in the world." In 2002, everything was subordinated to this goal, and foreign policy served entirely foreign economic tasks.

Overall, 2003 was a very successful year for Vietnam. In terms of economic development, the country ranks second in Asia after China. The industry is growing especially fast - by 14% in the first half of the year compared to the same period in 2002. Moreover, the largest increase in the non-state sector of the economy - about 20%, and the sector that works entirely at the expense of foreign investment growth-almost one and a half times. GDP growth in 2002, according to experts (at the time of writing this article, the results of 2003 have not yet been summed up), was six percent1 .

Official reference books give an even higher figure -7% ² . Vietnam receives a lot of foreign investment, with the majority of investors coming from Asian countries. Foreign entrepreneurs are attracted primarily by the socio-political stability in Vietnam, the reputation of "the safest country in the region", especially promoted by the Vietnamese media, as well as relatively favorable financial conditions offered to investors.

At the same time, Vietnam is still among the poorest countries: 40% of its population lives below the poverty line, the income gap between rich and poor families is 10%.:1; in terms of average income ($400 per capita), it ranks 120th out of 162 countries3 .

At the same time, the quality of life of the population is gradually improving. ⁴ The average life expectancy in Vietnam is more than 68 years, and more than 90% of the adult population is literate. Vietnam ranks 43rd out of 89 developing countries in terms of ^{the number of poor, also improving on 2001.5}

Vietnam's Prime Minister Phan Van Khai in one of his speeches assessed the current socio-economic situation of the country as " ... unstable, with many weaknesses, among which the most "flashy" are signs of a decline in exports, a reduction in direct investment ⁶ from abroad, weak efficiency and competitiveness of the economy, "shaft" social vices", among which the most serious is corruption " ⁷ . Indeed, Vietnam is considered one of the most unfavorable states in the world in terms of the degree of corruption of the bureaucratic apparatus at all levels. In Asia, it is second only to Indonesia and far ahead of China and Russia in this capacity, according to experts ^.8 The situation with corruption in the country is so serious that the general secretary of the CPV Central Committee, Nong Duc Man, was forced to declare in the summer of 2002 that if the party does not deal with corruption, it will lose power. Similar statements were made after him by other high-ranking officials and functionaries of the SRV9 . It is in the context of the fight against corruption that the authorities ' decision in January 2002 to rotate high-ranking officials every three years should be considered. The move is part of a broader administrative reform underway in the country.

In accordance with the concept of this reform, significant changes were made in the structure of the Government of the Socialist Republic of Vietnam in 2002-2003. Three new ministries were created, including Natural Resources and Environment, Post and Telecommunications. The Customs Service was reassigned to the Ministry of Finance. Local authorities were given more rights in making economic decisions. This measure was adopted, among other things, in order to stimulate the development of-

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increasing the inflow of foreign direct investment into the country ¹⁰ .

Vietnam seeks to join the ranks of states with a modern economy, not in words, but in deeds. So, the country is seriously engaged in the development of nuclear energy, the government has already decided to build its own nuclear power plant. Its first block will be launched in 2017. The construction of the nuclear power plant will require 1.5-2 billion dollars. investments that should be allocated mainly by the Vietnamese state. The Institute of Nuclear Energy and the Ministry of Industry of the Socialist Republic of Vietnam have calculated that to meet the country's electricity needs by 2020, the capacity of this plant should reach 1200-4000 MW. Locations for the future construction site have already been identified as Quang Binh, Fuyeng, Binh Thuan or Ninh Thuan ¹¹ .

The socio-economic strategy for 2001-2010 also includes the construction of a large hydroelectric complex in the province of Shongla. The implementation of this project will ensure the supply of electricity for industry and water for agriculture. The waterworks will be used to control floods, a traditional natural disaster in the country. The new large hydroelectric power station " ... will boost social and economic development and enhance security and defense capabilities in northwestern Vietnam. Construction is scheduled to start in 2005 and a decision has already been made to allocate funds for the construction of the hydroelectric complex " ¹² . However, construction companies are already facing difficulties: it is not so easy to hire and train up to one hundred thousand people, mainly from ethnic minorities. In addition, reports of corruption have already appeared in ^the press13 .

The foreign policy of Vietnam in 2002-2003 was mainly subordinated to the implementation of foreign economic tasks. An important event in 2002 was the beginning of the implementation of the Vietnam-US bilateral Trade Agreement, which became legally binding in December 2001. In Vietnam, this agreement is considered in the context of national interests related to the accelerated implementation of industrialization and modernization of the country, as well as as a means to further integrate the economy of Vietnam into the world economy. The American side, in particular, promised to provide Vietnam with support in the country's accession to the WTO.

Overall, the first year of the agreement was relatively successful: the value of Vietnamese exports to the United States in 2002 exceeded $ 2 billion, while the volume of its imports reached $ 460 million. In fact, Vietnam's exports to the United States doubled in 2002 compared to 2001. The United States ranks 13th among Vietnam's major investors and implements a total of 144 projects worth about $ 1 billion. ¹⁴

In the spirit of further "normalization of relations" with Hanoi, the United States extended the non-application of the Jackson-Vanik Amendment to Vietnam for another year in 2002. On July 23, 2002, the U.S. House of Representatives approved President Bush's decision by 338 votes to 91. This is the fifth US decision suspending the Jackson-Vanik Amendment in relation to Vietnam for a year, possibly bringing the time for its complete repeal closer ^.15

However, not at all in the spirit of the signed "liberal" Trade Agreement between the United States and Vietnam, a multi-month "fish war"broke out. It arose in connection with the protests of the American side over Vietnam's export to the American market of so - called "cat fish" - fish for cats, which in a short time won 20% of the American market, which caused a negative reaction from local producers and their lobby. Vietnam's attempts to defend its rights through reputable American law firms led to the fact that in November 2002, the US Department of Commerce declared the economy of Vietnam ^non-marketable16 . This did not end the war, but it gave rise to something like the saying: "Big fish take a bite out of small fish and continue to muddy the waters of global trade integration." ¹⁷

They say about such episodes: the development of the economy is not without problems. But is it possible to avoid problems with such high growth rates, and even in the context of a significant restructuring of the entire country's economy and changing the rules of its functioning?

-----

^{Regina M.Abrami.} 1 Vietnam in 2002. Asian Survey, N l Jan-Febr, 2003, c. 91, 92.

² "Nyan Zan", 03.12.2002.

³ " Kuan doi niang zan "(hereinafter - KDNZ), 07.01.2002.

⁴ "Nyan Zan", 26.07.2002, "KDNZ", 06.01.200, "KDNZ", 06.01.2002.

⁵ Ibid.

⁶ At the IX Congress of the CPV (April 2001), it was decided to ensure the receipt of investments for the period from 2001 to 2005 in the amount of 59-61 billion dollars. However, after the 1997-1998 crisis in Southeast Asia, the inflow of foreign investment to Vietnam significantly decreased. According to various estimates, the country received between $ 1.5 billion and $ 2.47 billion in direct investment in 2001, compared with $ 8 billion in 1996, when the volume of investment in Vietnam peaked. (See Nyan Zan, 03.12.2002; KDNZ, 16.03.2002.)

⁷ "Nyan Zan", 09.08.2002.

⁸ Asian Survey, No. 1, Jan-Febr, 2003, p. 93.

⁹ Ibid., p. 98. See also Vietnam News Brief Service, Sept. 17, 2002.

¹⁰ "Nyan Zan", 09.08.2002; Asian Survey, N 1 Jan-Febr., 2003, p. 98.

¹¹ "Nyan Zan" 12052002

¹² "Nyan Zan", 30.06.2001; Asian Survey, N 1, Jan-Febr. 2002, p. 84.

¹³ "KDNZ", 01.08.2002.

¹⁴ Lao Dong, N 327, 06.12.2002.

¹⁵ "Nyan Zan", 25.07.2002. The newspaper noted that in 2002, the number of US congressmen who voted in favor of Vietnam increased by six. In addition, several members of Congress have called for the complete repeal of the Jackson - Vanik Amendment for Vietnam.

¹⁶ Asian Survey, No. 1, Jan-February 2003, p. 95.

¹⁷ "KDNZ", 04.01.2002.

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