Introduction

It is often predicted that Vietnam will rise in Asia as a strong society and economy in the next few decades. This is not without justification. Vietnam indeed has much potential which, if fully exploited, can enable it to achieve a leading role in Asia. It occupies a strategic geographical position with a long coastal line of over 3000 kilometres. It borders strong trading partners such as China in the north and Laos, Cambodia and Thailand in the west. Vietnam has a hardworking population of nearly 90 million which offers a strong workforce, a significant market and hence strong manufacturing and trading potential. Vietnam is relatively rich in natural resources, with a number of petroleum fields off its coast and numerous deposits of bauxite, titanium, gold and other precious minerals concentrated in its highland areas. It has friendly relationships with countries in the region, in particular ASEAN countries, and increasingly strengthens its relationships with Western countries, including the United States of America and those in Europe and Latin America.

Significant and positive political and economic changes have taken place in Vietnam over the past two and a half decades. As is well known, following national unification in April 1975, Vietnam operated a closed, centrally planned, state-controlled economy, following the style of the former Soviet Union. For over 10 years, this proved highly unsuccessful and drove the Vietnamese economy into extremely serious depression.