Nguyen Duy Qui, Doctor of Philosophy, Foreign Member of the Russian Academy of Sciences, President of the National Center for Social and Humanitarian Sciences of Vietnam

In July 1997, a currency and financial crisis broke out in Southeast Asia. It has dealt a devastating blow to the economies of the region and slowed down further development. What impact has this crisis had on our country? Is Vietnam in danger of facing a similar crisis? It is the task of the author of this article to highlight these problems.

The impact of the currency and financial crisis on the Vietnamese economy

After Vietnam became an official member of ASEAN (July 28, 1997), economic ties and cooperation between Vietnam and other ASEAN member countries began to develop rapidly.

Scope of trade: Vietnam's trade relations with the founding countries of ASEAN (hereinafter referred to as ASEAN-6) account for about 30 % of the total value of our country's international trade, reaching 5.2 billion US dollars; its growth was 525.8 % compared to 1990. The state of Vietnam's trade relations with the ASEAN-6 member countries is shown in Table 1.

Table 1

Vietnam's trade relations with the ASEAN-6 countries (USD million)

(in millions of US dollars)

Sources: Ministry of Commerce of Vietnam; General Statistical Office of Vietnam, 1996.

page 296

As can be seen from the table, Vietnam's bilateral trade with the five founding countries of ASEAN grew rapidly immediately after Vietnam received observer status in the Association in 1992. Among these 5 countries, our country's largest partner is Singapore. Bilateral trade relations between Vietnam and Singapore exceed the combined trade volume of all other ASEAN-6 countries with Vietnam. Vietnam's second largest partner among the ASEAN countries is Thailand, followed by Malaysia, Indonesia and the Philippines. We should pay attention to the fact that the most intensive and extensive trade relations with Vietnam are in the highly developed countries of the Association. This is the reality, and it shows that there are opportunities for mutual exchange between the economies of Vietnam and these countries.

In addition, there is another factor that deserves attention in our country's trade relations with the ASEAN founding countries, namely, Vietnam is constantly increasing its exports to the markets of ASEAN member countries, especially after it became involved in the activities of AFTA - the ASEAN Free trade Zone.

Table 2

Dynamics of Vietnam's exports to some ASEAN countries

(millions of US dollars)

Source: Ministry of Commerce of Vietnam.

From the data presented in table 2, it can be concluded that Vietnam's exports have increased very rapidly in recent years. Compared to 1990, the export of goods from our country to Malaysia in 1996 increased by 56 %, to Singapore-by 37.1 %, to the Philippines-by 15 %, to Thailand-by 12.7 %. The main commodity of Vietnam's export to the ASEAN countries is rice. Vietnam's revenue from rice exports to ASEAN countries totaled $ 731 billion in 1998, an increase of 6.4 %. The largest market for Vietnamese rice was Indonesia, followed by the Philippines and Malaysia.

page 297

The total value of Vietnam's imports from ASEAN-6 countries in 1998 was $ 719 billion, while Vietnam's imports from ASEAN countries decreased by 8.9 %. Vietnam mainly exports raw materials for production, such as oil, as well as fertilizers, insecticides, electronics, motorcycles, etc.

Vietnam's trade with ASEAN countries is characterized by a persistent foreign trade deficit. Thus, Vietnam's foreign trade deficit in trade with Indonesia in 1996 amounted to 91.7 million dollars, with Malaysia-122.6 million dollars, with Thailand-387.5 million dollars, with the Philippines-96.2 million dollars, with Singapore-251.5 million dollars.

Relations between Vietnam and the ASEAN-6 countries have also developed quite steadily. During this period, the top three (out of 10 countries) investors in our country were Singapore, Malaysia and Thailand. The investment situation in Vietnam and the ASEAN countries is presented in table 3.

Table 3

ASEAN-6 countries ' investments in Vietnam as of November 1998

Sources: Project Management Department; Ministry of Planning and Investment.

I - Total number of registered investments (USD million)

II - Total cost of realized investments (USD million)

III - Export revenue (USD million).

Table 3 shows that as of November 1998, the investments of 6 ASEAN founding countries in the economy of Vietnam were realized in 379 projects with a total registered capital of $ 9517 million, while realized capital investments amounted to $ 3023 million.

Direct investment from ASEAN member countries was mainly concentrated in the service sector (offices, hotels), in the mineral development (oil, gas), in the extraction, processing and production of seafood. This situation persists to this day. The scale of ASEAN investment projects (in Vietnam) is generally small when compared with the investment projects of industrialized countries. Overwhelming

page 298

Most projects have only $ 1-5 million in capital. The technologies used in ASEAN investment projects do not belong to the category of high technologies, and their implementation is associated with high labor costs and the consumption of natural resources. Among the ASEAN member investors, only Singapore has proposed several high-tech projects.

Despite still existing restrictions, direct investment by ASEAN member countries has made a significant contribution to the socio - economic development of our country over the past years. To date, foreign direct investment of ASEAN member countries in our country has amounted to $ 369 million.: this is both the profit from exports and the solution of employment problems - 34 thousand people got a job.

While Vietnam's economic cooperation with the ASEAN-6 countries was developing successfully, the currency and financial crisis broke out in Southeast Asia, which had a strong impact on the economies of Thailand, Indonesia and Malaysia, i.e. on those countries that conducted active trade with our country and made large investments (in this regard they were second only to Singapore). As a result of the economic downturn that has engulfed other ASEAN member countries, their import requirements for goods from Vietnam have been reduced. According to estimates of the Ministry of Trade of Vietnam, the damage caused to our country as a result of the reduction of trade with the countries of the ASEAN-6 group due to the outbreak of the monetary and financial crisis amounted to $ 350 million.

Direct investment by the ASEAN-6 countries also declined significantly. According to the Ministry of Planning and Investment of Vietnam, in the first 6 months of 1998, the ASEAN-6 countries received approval for only 15 new investment projects with a capital of $ 803 million, of which $ 700 million is invested in Singapore, which has already been granted permission from the Vietnamese authorities, but Singapore representatives have not yet expressed a desire to receive these licenses.

The impact of the currency and financial crisis in Southeast Asia on our country has clearly shown that the Vietnamese economy has begun to experience the impact of the regional economy. Integration into the regional economy is not only beneficial, but also a serious challenge. The Vietnamese economy will not be able to develop normally if the regional economy continues to decline. This is a new phenomenon in our country's relations with the regional economy, if we compare this period with the Cold War period. At present, after Vietnam's accession to ASEAN and its participation in the AFTA zone, the Vietnamese economy is experiencing an impact from the regional economy, whether we want it or not.

page 299

Causes of the monetary and financial crisis in Southeast Asia (a look at the ASEAN development model)

The currency and financial crisis that has broken out in the region has given rise to serious decisions in our country. And the problem is not only that Vietnam is also indirectly affected by this crisis, but also-more importantly-that Vietnam is currently developing an industrialization strategy that has factors and moments similar to those that were inherent in the industrialization path of the founding countries of ASEAN.

Just like the countries of the ASEAN-6 group, Vietnam has set a course for creating an open economy characterized by diversification and versatility of foreign economic relations, strengthening export orientation - while simultaneously stopping the import of goods that are efficiently produced in Vietnam itself, and rational use of funds and capital, technologies and international markets for the implementation of industrialization and modernization of the country.

At the initial stage, industrialization was export-oriented, and our country set a course for the development of those industries in which labor resources would be concentrated (production of fabrics, clothing for blanks, shoes, electronics assembly, etc.), in order to master and use the comparative advantages of our country-young labor resources and existing ones It is also necessary to solve the problem of labor employment, creating new jobs.

To implement industrialization and modernization, the Communist Party of Vietnam has declared an open door policy in the country. This course is characterized by the realization of the nation's capabilities using world achievements, attracting all external sources of development (capital, technology, markets, management skills). Implementing this policy of the party, the Law on Foreign Investment was published in Vietnam in 1988, which was subsequently supplemented and amended several times in order to create more favorable conditions for the activities of foreign entrepreneurs intending to invest in the Vietnamese economy.

A legitimate question is: should the currency and financial crisis in Southeast Asia be considered only the result of speculative actions of international financial traders, including the American billionaire Soros, whose true nature was exposed by Malaysia? Is this crisis that has engulfed our region the very crisis of the development model, the decline of the prosperity model of East Asia, which is not without pleasure being talked about in the West?

In order to identify the true causes of the currency and financial crisis in the Southeast Asian region, numerous seminars were organized both in Russia and abroad.

page 300

Both in Vietnam and abroad - during the entire crisis period. Analyzing the causes of the crisis, Vietnamese scientists came to the conclusion that the monetary and financial crisis in Southeast Asia should not be considered simply as a result of mistakes made by central banks in the ASEAN-6 countries, as a result of the actions of international financial speculators, although they should undoubtedly bear their own, and considerable, responsibility for the collapse of the economy in a number of ASEAN countries.

According to many Vietnamese experts on regional and international issues, this crisis has deep and long-standing roots in the development model of the vast majority of ASEAN founding countries. The ASEAN development model is essentially just a variant, a modification of the East Asian development model. This model has its main advantages, but there are also many disadvantages. Among the most serious shortcomings are the following::

1) too much dependence on external sources of development;

2) close integration between political power and the economy, which is the source of so-called "protectionist capitalism";

3) powerlessness and inability to solve problems of social equality;

4) lack of capacity to assist in the development of national technologies;

5) environmental damage is too high.

However, we should not conclude that the monetary and financial crisis in our region is a crisis of the development model of the economies of Singapore, Hong Kong, Taiwan, and other countries and territories that use the East Asian development model. But at the same time, it cannot be completely denied that some of the structural elements of this model no longer correspond to the international economic and trade environment, which has changed in an unfavorable direction for ASEAN.

Such a conclusion is very important, because it helps to strengthen confidence in the model of prosperity growth that our country follows, and also helps to set guidelines for the measures that should be implemented in order to prevent the possible appearance of weaknesses and shortcomings in the development model of our country - a model built on the basis of the realities of Vietnam, combined with by studying and applying the experience of advanced foreign countries.

Measures to prevent the Vietnam crisis

Based on the results of research conducted by Vietnamese scientists and based on the practical reality of our country, the Government of the Socialist Republic of Vietnam has taken timely measures aimed at preventing

page 301

The aim is to reduce the risk of the crisis spreading to our country and minimize its negative impact on the Vietnamese economy.

Just 5 months after the beginning of the currency and financial crisis in Southeast Asia, the fourth Plenum of the CPI Central Committee confirmed the country's strategy in the current conditions: "To continue updating, to maximize the mobilization and development of domestic capacities and forces, to increase the effectiveness of international cooperation, to implement economy in every possible way in order to increase both industrialization and modernization, to increase the efficiency and competitiveness of the economy, to ensure close interaction between culture and education, to realize social equality and social progress."

These guiding ideas clearly show that the Communist Party of Vietnam quickly and correctly identified the essence of the monetary and financial crisis in Southeast Asia and the main shortcomings in the ASEAN development model. Thus, the source of Vietnam's internal forces is not only visible, but also invisible reserves. This assessment was also expressed in the words of the General Secretary of the CPV Central Committee, Le Kha Phieu: "This is a huge source of internal strength, which is extremely favorable, it is a favorable situation and a decisive factor in the sustainable growth of the country's well-being."

Below, we will look at the sources of Vietnam's internal forces, as well as the policies and actions of the CPV aimed at deploying these sources in order to industrialize and modernize our country at the present stage.

Mobilize sources of capital investment within the country. According to data obtained from the survey and practical studies, a large amount of capital was mobilized in the country in 1991-1997 - approximately 386,000 billion Vietnamese VND, which corresponds to 36 billion US dollars.in the United States (as of prices in 1995), while domestic capital mobilised averaged 52-53 %. However, there are still extremely large sources of funds held by the population. According to some researchers, the sources of domestic funds-the savings of the population-can currently reach 10 billion US dollars, and the vast majority of savings are in the form of gold (40 %) and real estate (20%).

As a result of the achievements related to the growth of economic prosperity, and especially as a result of the anti-inflationary measures taken, due to the actively implemented reforms in the banking system and in credit funds, the population has gradually restored confidence in state-owned credit institutions. Thanks to this, the amount of money sent by the population to banks and savings banks is constantly growing. As of September 30, 1998, the system of the Commercial Bank of Vietnam had:-

page 302

vano more than 100,000 billion rubles. VND, an increase of 56.22 %. However, it should be noted that currently the main sources of capital are still accumulation funds in the public sector. These sources of funds still account for 50-58 % of all sources of capital investment in the country. In addition, sources of investment from the public sector also cover part of the investment coming from outside, but which has already passed the process of" endogenization", i.e. involvement in the processes of internal life of the country. These sources of funds include Official Development Assistance (ODA) programmes, as well as other channels for providing development assistance. However, the share of ODA sources in the structure of domestic investment is mainly based on sources of assistance from abroad, and in the period 1991-1997, sources of these funds accounted for only about 50 %. In order to further mobilize the population's funds, the Government of the Socialist Republic of Vietnam extended a state loan worth 4 billion rubles. vietnamese dong. Most of the funds raised (received) will be invested in the development of the 1,000 poorest communities in our country.

Mobilising the potential of agriculture and the countryside. The second source of internal strength that the CPV and the Government of the Socialist Republic of Vietnam have drawn attention to is the potential of tropical agriculture and the source of rural labor.

Vietnam is a country with 76 % of its population living in rural areas; more than 70 % of its workers are employed in agriculture. Moreover, industrialization and modernization in Vietnam are taking place in an environment that requires self-reliance, and agriculture continues to be a source of capital investment for the industry. In 1996, the production of rice and other agricultural products brought Vietnam 850 million dollars, in 1997-900 million dollars. It can be argued that Vietnam will not be able to develop successfully without proper agricultural development, although today the contribution of agriculture to GDP is gradually decreasing (in 1996 it was 27.2 %, while in 1990 it was 40.5 %).

The Communist Party of Vietnam has always paid great attention to agriculture and the countryside, successfully mobilized the forces of agriculture and peasants in the struggle for independence, and now considers their role even more significant in the course of industrialization and modernization of the country.

By July 1998, Vietnam had about 180 projects involving foreign direct investment in agriculture, the food and processing industry. Among these projects, there are also those that develop raw material areas and infrastructure.-

page 303

agricultural development, create additional jobs for the rural population, and support environmental protection. These include projects for planting 40 thousand hectares of forest in Kienjiang, 13 thousand hectares of forest in Binh Ding, etc.

In addition to foreign direct investment in agriculture, the Government of the Socialist Republic of Vietnam is actively developing and developing a program of "Official Development Assistance" for agriculture and rural areas. By July 1998, there were 57 agricultural projects in Vietnam. 44 projects were related to forestry, 24 projects-to irrigation. The total value of investments aimed at the implementation of these projects is estimated at approximately $ 1.2 billion and was obtained from official sources provided for development by friendly countries and international organizations.

Thanks to many-sided efforts, Vietnam's agriculture industry has made such changes over the years that we can be proud of. From a country constantly experiencing hardship and hunger, Vietnam has become a State that has enough food to feed the 77 million inhabitants of the Socialist Republic of Vietnam; moreover, Vietnam is the third largest rice exporter in the modern world. It can be said that the biggest achievement over the past years has been the achievements in agriculture in Vietnam.

The first significant successes were also marked by the implementation of programs to reduce and eliminate poverty. To date, there are only 19% of family households in the entire country that are classified as poor and in distress, and this number also includes 5% of family households that are classified as hungry.

In addition to addressing the problems of poverty and hunger, the Vietnamese State also pays attention to work on involving rural areas in the overall development process of the country. To achieve this goal, the CPV declared a policy of "developing industry and services directly in the villages instead of over-concentrating them in the cities". This is the way to eliminate hunger, reduce poverty, and combine the growth of economic well-being with equality and social stability in a harmonious way. In accordance with these directions, many large industrial facilities were deployed and started to be built in rural areas. Such a good example is the construction of a hydroelectric power station in Yali. Currently, the government is calling for investment in the construction of an industrial zone for oil and gas processing in Dung Caat , one of the most difficult and problematic areas in Central Vietnam. These projects are designed not only for economic purposes, but also to transform the surrounding areas into new cities, create favorable conditions for the population living in these areas, give them a chance and opportunity to use fairly

page 304

benefits of the development process. All this makes it clear that the CPI attaches great importance to sound and confident development and does not pursue the growth of economic well-being, as some ASEAN countries once did.

Develop the human factor as a source of strength

By industrializing and modernizing in a country that lacks rich natural resources and has limited financial resources, the Communist Party of Vietnam has clearly and deeply realized the following fact: the most important source of internal strength in our country is the human person.

Currently, the population of Vietnam has reached the level of 77 million people, the country is on the 13th place in the world in terms of population, on the 7th place among 42 countries in the Asia-Pacific region and on the 2nd place in the Asia-Pacific region. Despite some success in implementing a family planning program in Vietnam, population growth in Vietnam is still higher than the global average. In 1991-1995, the country's population growth rate was 2%, while the global average was 1.5%, and in industrialized countries - 0.2 %. Every year in Vietnam, about a million young men and women join the army of the working-age population. In 1995, the working-age population in the Socialist Republic of Vietnam was 35 million, an increase of 6.2 million people compared to 1990. Category of young workers (from 16 to 35 years) it accounts for up to 65 % of the country's total labor force. 87% of the population of Vietnam is literate, 48% of the 35 million working - age population is made up of citizens who have completed vocational training, which is more than 11% of the total labor force in the country. The Vietnamese worker, according to numerous estimates, is able to easily master the necessary skills and knowledge, the necessary profession, he is hardworking and bravely endures difficulties. Nevertheless, speaking about the labor resources of our country, we should also note some significant negative aspects.

First, there is an imbalance in the very level of training of professional personnel and employees. In 1993, persons with higher education accounted for 1.5 % of the total population of the country, while 5.28 % had a diploma of primary vocational and secondary special education. Secondly, the quality level of training of workers is still low. Most of them were prepared back in the days of the subsidized distribution system of management, so they can hardly adapt to the conditions of market mechanisms. In the current situation, people are not yet able to play the role of the main driving force in the development of the country - as we would like, especially in the future.

page 305

the modern era, when the cultural level of the people, their scientific and technical potential have become a factor determining the power and position of the state in the world.

In implementing the CPV regulations on personnel education and training, the Government of Vietnam has made numerous efforts to educate and train personnel over the past period, especially from the beginning of the renewal process to the present day. To date, a developed and extensive system of school institutions has been created in our country. Educational institutions and programs have been qualitatively changed and reduced. In 1998, there were more than 20 million students in the entire country. From a country where once 95% of the population was illiterate, Vietnam has evolved into a country where the vast majority of the population has successfully overcome this "social malaise". Currently, 16 cities and provinces of Vietnam (including 3 provinces in mountainous areas), 57% of counties, and 76% of communities have reached the State standard in eliminating illiteracy and expanding primary education. In comparison with the period 1991-1992, the number of students enrolled in educational schools increased by 1.25 times in 1995-1996, while the number of university students increased by 2.7 times. The quality level of training has also increased, especially in natural science and technical disciplines. New factors are also at work in the educational process itself: various new forms of education have been introduced, and conditions for study and research have been created. Many places are experiencing an educational boom, especially among young people.

These results, achieved in educational work and training of personnel, have become a great contribution to the development of the country's labor resources. It is noteworthy that Vietnam's workforce is very young. The vast majority of workers are young people who have completed secondary school. Along with this, he will also note this fact: a large number of Vietnamese workers are highly qualified personnel, today the number of people with higher education is 700 thousand, 70 thousand people have completed post - institute training and advanced training; the number of workers with vocational training is 2 million.

However, many challenges remain in Vietnam's education and training system. In relation to the entire population of the country, the share of those who received primary education is only 80-85%, at the secondary school level - 36.2%, at the higher education level - 2-3 %. While the corresponding indicators in countries with an average level of development are 91 %, 46 % and 14 %, in highly developed countries - 98 %, 64 % and 23.4 %). In Vietnam, the share of people with higher education per 100 thousand people is 600, while this figure is in Germany - 12253 people, in France - 1515, in the USA-2196, in South Korea-2659.

page 306

The structure of education and training also deserves close attention. In our country, 89 % of the population lives in the countryside, and currently the share of specialists who have received professional training in agriculture is only 0.45 %. Of the 23 million people who work in agriculture and forestry, only 7 % have received vocational training. The share of specialists in agriculture with higher education is only 8.1 %, and those who have completed post-institute training -6.59 %; most of them are concentrated in the central authorities (89.3 %). In cities-8.9 %, in counties - only 1.8 %. Of the total number of people who have received scientific and technical training, only 7.4 % are currently employed in science and technology. Typically, the ratio between the number of engineers and skilled workers in developed countries is 1/20, while in Vietnam this figure is 1/0. 9. If Vietnam continues the same system of selection and admission of students to higher education institutions as we had in 1997,then in 5 years the share of workers with secondary and higher education will be equal it will be 5/1 per worker.

It should be recognized that the quality level of training in higher and secondary specialized institutions has also seriously decreased. As a result, according to experts of the United Nations Development Programme, Vietnam's labor force development rate is currently declining, and this process has been taking place in recent years simultaneously with the spread of new forms of education and training. According to these indicators, Vietnam ranked 102nd in the world (out of 173 countries), in 1994 it dropped to 106th place, in 1995 - to 116th, in 1996 - to 121st place and in 1997 - to 122nd place.

Implementing the perspective approaches of the Vietnam 2020 program, the second Plenum of the CPV Central Committee (VIII convocation) outlined guidelines for the development and training strategy in the period of industrialization and modernization of the country. The Plenum stressed that the country's labor resources should be actively developed, and that a modern worker in Vietnam is a person with intelligence, good professional training, high moral qualities, and good education and training - as a result of combining advanced education with modern science and technology.

Thus, the system of education and training of professional personnel in our country has the following tasks::

- create such conditions so that almost all children under the age of 5 can attend kindergartens and other pre-school institutions, where they would receive proper educational and educational training for studying in primary school;

- create conditions that would guarantee 60 % of children aged 11 to 15 the opportunity to complete a full course of study in basic schools.

page 307

in general education schools, 40 % of children aged 16-18 have the opportunity to get a full course of study in secondary schools. The necessary efforts should be made to rationally distribute secondary school graduates to higher and secondary educational institutions and vocational training institutions in a 50/50 ratio;

- strive to ensure that the share of professionally trained employees is 20-25 % of the total labor force (currently this figure is 10 %).;

- Enroll children in primary education nationwide by 2000, basic education by 2010, and secondary education by 2020;

- Strive to ensure that by 2020, education coverage in Vietnam will reach the level of developed countries in the region.

Creation of advanced national technologies

An even more difficult task for our country is to create advanced national science and technology. As noted at the second Plenum of the CPI Central Committee, science and technology in our country are developing slowly, do not meet the existing potential, do not meet the requirements of development during the period of industrialization and modernization, and lag behind the countries of the region. In other words, we have not yet created science and technology as independent industries, even if not at the highest level of development.

According to the Ministry of Science, Technology and Environment, Vietnamese technologies are 50-100 years behind the most advanced countries, and about 20 years behind the countries of the region. The report of the Ministry noted that according to the results of surveys of a number of enterprises belonging to 7 industrial sectors, the depreciation of more than 50% of fixed assets at these enterprises is from 30 to 50 %, 38 % of fixed assets are replaced due to complete wear and tear. Machinery and equipment come from different sources, so businesses are not fully equipped. According to statistics, only in industry, 26 % of equipment is supplied from the USSR, 20 % - from Eastern Europe, about 20 % - from ASEAN and Northern Europe, and more than 18 % - from other sources. In this situation of technical equipment and provision of equipment, the level of raw material consumption per unit of production in Vietnam is much higher than in advanced countries. Thus, when compared with the ASEAN countries, Vietnam's consumption of raw materials per unit of production is approximately 20-30 times higher, while labor productivity is only 60-70 % of labor productivity in these countries. Only about 20% of the goods produced in Vietnam meet export standards.

page 308

Although the research team in our country is numerous, its quality level is low, and there is a shortage of leading industry and experienced qualified specialists, especially in the field of technology. The lack of a rational policy in the field of science and technology has led to the fact that in almost all higher educational institutions and large research centers there is a drain of personnel from public institutions to private structures, especially to enterprises with foreign investment. In our country, the situation is now similar to that which was typical for almost all the countries of the ASEAN-6 group, namely: students do not want to study at faculties that train specialists in basic sciences, young people storm universities that train specialists for various sectors of the economy, trade, law, etc., i.e. young people are trying to find a way out of in those areas where there has always been a great need for labor. If this situation continues, our country will lose the advantages that allow Vietnam to be competitive among other ASEAN countries in the field of basic scientific research.

To overcome such inconsistencies and distortions, the Second Plenum of the CC KPV developed the Main Guidelines for the strategy for the development of science and technology in the period up to 2020:

1. Creatively use and develop Marxism-Leninism and Ho Chi Minh's ideas, inherit the traditional cultural values of the Vietnamese people, deeply and comprehensively study the surrounding reality, and comprehensively generalize the country's renewal process. Create, constantly develop and improve the theoretical foundations of Vietnam's path to socialism, prepare scientific justifications in order to continue, supplement and improve the course, attitudes and policies of the Communist Party of Vietnam and the Vietnamese state for the successful construction of socialism and the reliable defense of the socialist Fatherland.

2. Strengthen research activities and implement scientific achievements and technologies in all branches of production, business, services and management, national defense and security, and rapidly improve the country's technological level. Pay serious attention to fundamental research, show an economic approach and initiative, improve foreign technologies, and strive to create new technologies in the links that determine the development of our country in the XXI century.

3. Improve the existing internal capabilities, create and develop scientific and technical potential; educate, train and efficiently use qualified scientific and technical personnel; rejuvenate and develop a cadre of talented scientific and technical specialists with the necessary moral qualities.-

page 309

It is also necessary to develop the country's infrastructure, strengthen the organizational system, develop the material and technical base, expand the sources of information support, and form modern Vietnamese science and technology that can solve most of the key problems posed during the country's industrialization and modernization.

These three directions in the strategy of scientific and technological development allow us to clearly see the determination of the Communist Party of Vietnam in creating modern science and technology in the country.

Protection of natural resources and the environment

Like other ASEAN countries, Vietnam has concentrated on the task of developing its economy. Our country is committed to ensuring sustainable and reliable development. The economic experience of many ASEAN countries shows that the growth of economic prosperity is an important goal, but it should not be categorical, ultimatum. It is impossible to solve all the problems of the country only through the growth of economic prosperity. Economic growth is meaningless if the state has to lose its natural resources for its sake, while the population is burdened with the catastrophic consequences of environmental pollution.

In the period leading up to the 1990s, due to the need to concentrate all the forces of the country on unification and protecting national security, the Communist Party of Vietnam and the Government of the country did not yet have the conditions to pay due attention to the development of natural resources and the protection of the environment and ecology. At that time, the country had a backward economy that offered mainly agricultural and forestry products, seafood, and raw materials for export; together with this, rapid demographic growth quickly depleted natural resources. The disappearance of forests and wildlife is a clear example and consequence of this policy. Previously, 3/4 of Vietnam's territory was covered by forests, but now it covers 9.3 million hectares of forest land, including about 8.25 million hectares of natural forests, while the remaining 10 million hectares are forest wastelands and deforested hills. Vietnam has become the country of the most intensive deforestation: 2.8% of forests are destroyed annually, while similar indicators in other countries are completely different: in Thailand-1.6 %, in China-0.8 %, in Malaysia-1.2 %, in South Korea-0.1 %, in Indonesia-0.4 %. If the current rate of deforestation continues, Vietnam will face a real risk of completely losing its own forest wealth in the coming century. The loss of forests leads to soil erosion, landslides and scree, and typhoons with floods, which in fact is already happening in recent years in Central Vietnam and in the lowlands of the Mekong River.

page 310

Previously, our country was one of the countries with biologically rich potential, but now many species of valuable and rare animals have disappeared or are on the verge of extinction. According to the Trade Research Institute, an Advisory Center for Training Specialists in Economics and Trade, 28% of animal species, 10% of bird species, and 21% of reptile and amphibian species are currently at real risk of extinction in Vietnam.

Currently, Vietnam is experiencing a real construction boom: various industrial facilities and service enterprises are being built, but the construction of industrial waste treatment facilities is not being carried out simultaneously with new facilities. Most of this waste and wastewater flows directly into large lakes and rivers. In many places, the pollution situation has reached alarming levels, especially in major cities such as Hanoi and Ho Chi Minh City. If the construction of wastewater treatment plants at industrial facilities is not brought under strict control in the near future, then our country will face the danger of repeating the serious mistakes that were made in Thailand and the Philippines in relation to the environment.

In accordance with the directives of the CPV, in 1992 the Ministry of Science, Technology and Environment was established, which is entrusted with the functions of public administration and environmental control. Today, our country has created a unified system for managing environmental protection, covering various divisions from the center to the periphery. Various non-governmental organizations have been established that also share responsibility for environmental protection. On December 27, 1993, the National Assembly of Vietnam adopted the Environmental Protection Act. Later, other legislative acts related to environmental protection were finalized and adjusted: the Land Law, the Law on Forest Protection and Development. The Law on Minerals and Ore Resources. The Law on Water Resources, etc.

Simultaneously with the creation of a legal framework for environmental protection, numerous programs and projects related to these problems, including forest restoration projects, were also implemented. One of these projects is the Greening of Wastelands and Deforested Hills Program, which has been in operation since 1993. Within the framework of this project, in Vietnam, in March 1998, a program of forest plantations was launched on an area of 5 million hectares, which will last until 2010, as a result, the total area of forests in our country should increase to 14.3 million hectares.

Vietnamese scientists have called for the creation of a structural mechanism for joint leadership and solving environmental problems in uni-

page 311

in the same geographical area - in South-East Asia, as well as the ASEAN Tribune on Environmental Issues. The initiative to create such a Rostrum was supported, and the first meeting was held in Vietnam in 1999.

Creating a strong state apparatus as an active tool in the country's development

In Vietnam, the State plays the same economic role as in other ASEAN countries. These include creating and maintaining a stable macroeconomic environment that is favorable for economic development, providing the structural basis (roads, bridges, creating sources of labor), regulating and distributing income, and implementing social equality. However, the role of the State in the economic development process in Vietnam has its own differences and peculiarities when compared with the role of the State in the development of the economy in other ASEAN countries. The peculiarity is that it is necessary to " organize the implementation of the Party's course for the renewal of the country and the life of the Vietnamese people. First of all, this concerns the renewal of the economy, the creation of a transition stage in the process of transition of a centralized and bureaucratic economy that operated on subsidy-distribution principles, to market mechanisms operating under the control of the state, along the path of socialism." Thus, in Vietnam, the state plays an additional role in implementing the CPV course, guidelines and policies, a kind of midwife role in the delivery of a socially oriented market economy.

In order to enable the state to actively play its role in the development of the economy and society in the context of the changing situation in the world and in the region, the Third Plenum of the CPV (VIII convocation) pointed out the existing shortcomings and inconsistencies in the state apparatus of our country and outlined measures to overcome them. The following shortcomings were noted in the Resolution of this Plenum::

- the state apparatus is not yet truly clean and strong; corruption and bureaucratic waste are still a serious problem, they are still not overcome; the efficiency of management and leadership is not up to scratch; public order is left to its own devices, which reduces the people's faith in the party and the state;

- state governance does not meet the requirements of the time, is not fully developed and does not resist the elements and negative phenomena of the market economy;

- the organization of the state apparatus remains cumbersome, functional responsibilities and tasks in the distribution and interaction of the state apparatus with the state.-

page 312

The three branches of government - legislative, judicial-executive and legal-are confused and not clearly defined; there are still many unclear provisions on the issue of decentralization and in the relations between the center and the periphery, which does not allow us to solve the problems of bureaucratic centralization, fragmentation, etc.;

- the party leadership does not yet meet the requirements of the renewal process in terms of organizational activities of the state. As a result, the leadership role of KPIs and the effectiveness of public administration have not yet been properly developed.

Having analyzed these reasons that led to the weakening of the role of the state, the third Plenum of the CPI Central Committee clearly noted that building a legal socialist state in the context of economic transformation is a new task, our knowledge is still small, there are many different things to be done, we need to search and at the same time draw experience. To overcome the shortcomings, the third Plenum of the CPV Central Committee put forward the following directives.

1. To continue and develop the right of the people to be masters in various forms of democratic representation and direct democracy, so that everyone can participate in the construction and defense of their country.

2. Continue the State-building of the Socialist Republic of Vietnam so that the State is clean, strong and effective; the State must serve its people.

3. The party should direct the administration of the state, develop and improve the methods of party leadership so that they correspond to and correspond to the characteristics and character of state bodies at any level; strengthen party leadership and control over financial management.

Implementing the above guidelines, our country is currently implementing comprehensive reforms of the State apparatus in the legislative, executive and legal spheres. The implementation of the party's programs, policies and policies made a significant contribution to curbing the risk of the currency and financial crisis spreading in our country, allowed us to take the first steps to overcome its negative impact on the Vietnamese economy, as well as gain experience in creating a multi-structured socially oriented economy that operates in accordance with market mechanisms and ensures the country's.

Permanent link to this publication: