After 20 years of renewal, Vietnam has recorded significant achievements as follows

The success of the 5 year plan 1986 - 1990 included the recovery of production, the transition from an old-style economic management to a new one, the initial renovation in the socio-economic life. The average annual GDP of the period was 4.4%.

In the 5 years (1991 - 1995), the economy overcame backwardness, decline and achieved incessantly high and comprehensive growth rates, exceeding most of the planned targets. The annual average GDP growth rate was 8.2%.

The 1996 -2000 period was regarded as an important stage to further accelerate national industrialization and modernization. Against the economic-financial crisis in the region and the damage of natural calamities, which caused extreme difficulties to the economy, the entire nation succeeded in overcoming the challenges and maintained an annual GDP growth rate of 7% per year.

In the 2001-2005 period, the economy posted continuous and higher growth rates. The average annual growth rate of GDP was 7.5%, as planned with that of agriculture of 3.8%, industry and construction 10.2% and service by 7%. GDP total value in 2005 was VND 838 trillion (equivalent to USD 50 billion), doubled that in 1995. Per capital GDP was approximately VND 10 million (or 640 USD).

Regarding finance, the saving-expenditure balance was improved. There was a progressive decrease in expenditure. Higher saving enabled development investment to reach the target of improving the people’s living standards and implementing industrialization.

Progress was made in improving infrastructure including transports, power systems, telecommunications and irrigation networks, thus contributing to boosting economic growth and improving the people's living standards.

Education and training, science and technology made considerable progress. Primary education universalization target was achieved nationwide, while the target for the secondary education was accomplished in 31 provinces and cities.

The mechanism of socialist-oriented market economy has been progressively built; with regard to legal framework, mechanism, policy and facility in economic management, appropriate reforms conducive to economic development were carried out. In 2005, the National Assembly approved 20 laws. Since the launching of the renovation till now, there have been more than new 200 laws and ordinances. The legislation system in socio-economic management has met the demand of national renovation.

Economic restructure was shifted towards industrialization and modernization, helping increase the effectiveness and quality of growth.

Proportion out of GDP (%) 1990 1995 2000 2005

Agro-forestry and fishery 38.1 27.2 24.5 20.89

Industry and construction 22.7 28.8 36.7 41.04

Services 38.6 44.0 38.8 38.07

There was a shift in the structure of economic sectors. Thanks to reforms and rearrangement in the state economic sector, the beneficiary enterprises operated more effectively.

Export value posted a rapid increase with an average annual growth rate of 17.8% in the 91-95 period; 21% in 96-2000 and 17.5% in 2001-2005. Export value per capita increased from USD 36.3 in 1990 to USD 166 in 2000 and USD 390 in 2005.

In 2005, Vietnam was the second largest rice, coffee and cashew nut exporter and the first pepper exporter in the world.

Regarding foreign investment attraction, in the 1996-2000 period, the total value of newly-approved and added FDI projects posted USD 24.6 billion, up by 30% as compared to the previous 8-year period, of which USD 10 billion was implemented, or 1.8 fold higher than the previous period. In the 2000-2005 period, in the midst of fierce competition in capital market, thanks to its continually improved investment environment, the country attracted a total value of USD 20 billion from newly-approved and added FDI with the implemented value of USD 14.3 billion, exceeding the set target.

Committed ODA has increased remarkably since 1993. In the 1993-1995 period the donors committed a total ODA value of USD 6 billion. The value of ODA disbursement was USD 1.73 billion. In 1996-2000, the donors committed USD 11.64 billion of which USD 6.1 billion was successfully disbursed. ODA was used more effectively, contributing to economic development and the improvement of the people’s living standards.

Since 1998, poverty reduction was legalized into the National Targeted Program. Subsequently, by the end of 2005, the poverty household incidence according to the national poverty line dropped to 7%; the HDI was incessantly improved; the average life expectancy was 71.3; the incidence of malnutritious children reduced to 25% in 2005. 62% of the rural population had access to clean water, exceeding the set target.

Strive for faster economic growth, major shift in raising the quality and sustainability of growth to quickly lift the country from the status of an underdeveloped nation; Remarkably improve the people physical, cultural and spiritual life; and lay a foundation for the country to intensify industrialization and modernization and the development of a knowledge-based economy, to become a modern industrialized country by 2020. Maintain political stability, social order and safety. Firmly safeguard national independence, sovereignty, territorial integrity and security. Uplift the status of Vietnam in the region and the world arena.

Major indicators: the indicators are based on the goal of ensuring rapid and sustainable development of 3 main pillars: economic, social and environment development.

In terms of economic development: By 2010, the country's GDP is to be 2.1 fold higher than that of 2000, with an average annual growth rate of 7.5 to 8% or over 8% if possible. Per capita GDP by 2010 shall range from USD 1,050-1,100. Estimated economic structure shift: agro-forestry and fishery shall account for 15-16% of GDP, industry & construction 43-44% and service 40-41%. The total export turnover shall grow by 16% per year. The total social investment shall contribute 40% to GDP, in which domestic investment accounts for 65% and foreign-sourced 35%.

Regarding social development: by 2010, all provinces and cities will accomplish secondary education universalization; trained work-force shall account for 40% of the total; the poverty household incidence (according to the new standard) shall drop to 10-11% by 2010.

For environment sustainability: by 2010, 50% of the production and bussiness establishments shall meet requirements of the national environmental standards. All of the IZs and PZs will establish waste-water processing system. By 2010, the forest coverage shall increase to 42-43%.

To develop rural areas and agriculture; develop industry, improve the quality and competitiveness of products; develop services; promote export, increase the proportion of processed and manufactured products and technology and knowledge-intensive products; Reform education and training to meet the requirements of national industrialization and modernization, enhance the national scientific and technological capacity; raise the quality of the human resource; link environment protection with sustainable development...

Regional development orientation in 2006-2010: to tap the potentials and competitiveness of each region, especially the 3 major economic regions to create the momentum for national development process while developing the disadvantaged regions to narrow the development gap; develop marine economy.

Focus on the policies on investment and enterprise development; finance and State budget; as well as monetary, price and inflation control policies; the policies on remuneration and social insurance while focusing on shaping of a synchronized and complete apparatus with a view to fulfilling the national socio-economic development plan by 2010./.