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2023 Korea-Vietnam International Forum for Regional Development
Ⅱ.TheEconomicGrowthandChallengesinVietnamandSouthKorea
Iwillbegintoday’sremarks withabrieflookattheeconomicgrowthinVietnamand
SouthKoreaandtheprocessesofdevelopmentinbothcountries.
To kick things off, let's take a step back in history to understand the transformational
journey of Vietnam, which initiated its sweeping economic reforms?known as "Doi-
Moi," or renovation and innovation?in 1986. Vietnam's economic blueprint evolved
systematically, beginning with pivotal agricultural reforms, transitioning into a market-
basedeconomy,andfinallylayingtheinstitutionalgroundworkforinternationaltradeby
the mid-1990s. Over the decade that followed, Vietnam fortified its economic pillars,
focused on market liberalization, and welcomed foreign investments. These cohesive
reforms paved the way for Vietnam's WTO membership in 2007, cementing its global
economicfootprintandunderscoringitsstrategyofoutward-orientedgrowth.
These economic reforms and open-door policy can be considered to have led to a
remarkable outcome by greatly compromising gradual improvements and progressive
innovations.Asfortheformerofgradualimprovements,arepresentativeexamplewould
be the promotion of higher productivity through a phased agricultural reform, and the
gradual reform of public enterprises focusing on closing down and integrating insolvent
enterprises.Inaddition,asfortheoutcomesofthelatter,efficientresourceallocationwas
promoted through a market mechanism by rapid price liberation, and capital investment
initially insufficient was successfully accumulated by opening the market and attracting
foreigndirectinvestments.
An impressive average annual economic growth rate of around 6% over the past 30
years,aratethatoutpacesbothASEANneighborsandkeyEasternEuropeannations.As
welooktothefuture,thedemographicsofVietnamareoverwhelminglypositive,withthe
populationnearingthe100millionmarkandahighproportionofyoungcitizensactively
engagedintheeconomicfabric ofthenation. However, challengesdoloom,includinga
modesturbanizationrateofjustover40%,andsocietalpressureslikedecliningbirthrates
andanagingpopulace?challengesthatmirrorwhatwe'regrapplingwithinSouthKorea.
BothVietnam and South Korea are anchored in Confucian traditions, preserving their
unique cultures against the tide of foreign influence. More importantly, they are vibrant
players on the EastAsian andASEAN stages, emerging resiliently from the ravages of
12
Ⅱ.TheEconomicGrowthandChallengesinVietnamandSouthKorea
Iwillbegintoday’sremarks withabrieflookattheeconomicgrowthinVietnamand
SouthKoreaandtheprocessesofdevelopmentinbothcountries.
To kick things off, let's take a step back in history to understand the transformational
journey of Vietnam, which initiated its sweeping economic reforms?known as "Doi-
Moi," or renovation and innovation?in 1986. Vietnam's economic blueprint evolved
systematically, beginning with pivotal agricultural reforms, transitioning into a market-
basedeconomy,andfinallylayingtheinstitutionalgroundworkforinternationaltradeby
the mid-1990s. Over the decade that followed, Vietnam fortified its economic pillars,
focused on market liberalization, and welcomed foreign investments. These cohesive
reforms paved the way for Vietnam's WTO membership in 2007, cementing its global
economicfootprintandunderscoringitsstrategyofoutward-orientedgrowth.
These economic reforms and open-door policy can be considered to have led to a
remarkable outcome by greatly compromising gradual improvements and progressive
innovations.Asfortheformerofgradualimprovements,arepresentativeexamplewould
be the promotion of higher productivity through a phased agricultural reform, and the
gradual reform of public enterprises focusing on closing down and integrating insolvent
enterprises.Inaddition,asfortheoutcomesofthelatter,efficientresourceallocationwas
promoted through a market mechanism by rapid price liberation, and capital investment
initially insufficient was successfully accumulated by opening the market and attracting
foreigndirectinvestments.
An impressive average annual economic growth rate of around 6% over the past 30
years,aratethatoutpacesbothASEANneighborsandkeyEasternEuropeannations.As
welooktothefuture,thedemographicsofVietnamareoverwhelminglypositive,withthe
populationnearingthe100millionmarkandahighproportionofyoungcitizensactively
engagedintheeconomicfabric ofthenation. However, challengesdoloom,includinga
modesturbanizationrateofjustover40%,andsocietalpressureslikedecliningbirthrates
andanagingpopulace?challengesthatmirrorwhatwe'regrapplingwithinSouthKorea.
BothVietnam and South Korea are anchored in Confucian traditions, preserving their
unique cultures against the tide of foreign influence. More importantly, they are vibrant
players on the EastAsian andASEAN stages, emerging resiliently from the ravages of
12
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