8. Conclusion and Vietnam’s Future

The Asian financial crisis did not have to seem direct impact on the Vietnamese economy, During 1998, however, the effects of the regional crisis on the Vietnamese economy became increasingly evident: at the end of the year all major macroeconomic indicators suggested that the situation was becoming critical. Currency devaluation in many neighboring countries exposed Vietnam to increased competition at the same time as export markets for its national products, two thirds of which consist of East Asian countries, were shrinking. Export growth in 1998 slowed to 0.3 per cent, compared with about 22 per cent in 1997. After a further decline in the first four months of 1999, with a 7.5 per cent year-on-year drop, exports recovered appreciably in the second part of the year. The higher price of oil in the international markets and the increased volume of exports in agriculture, garments and footwear resulted in a 23.6 per cent export growth rate in 1999. As East Asian countries accounted for around 70 per cent of FDI and over 75 per cent of the export market in Vietnam, the Asian economic crisis of 1997-98 created severe financial difficulties for many foreign investors in Vietnam and led to a reduction in the demand for Vietnam’s exports. In terms of FDI flows, the regional crisis hat put several FDI projects on hold and stopped or slowed down implementation of other projects.

In the agricultural sector, Vietnam has achieved great success even after the Asian Financial crisis. Vietnam’s rice production has obtained many achievements and holds an important role in the economy. In 1998 Vietnam became the world's second largest rice exporter after Thailand, almost 50% of its rice exports going to Africa. As Vietnam’s fifth most valued export product, rice production’s earning reaches 600-800 million USD per year, accounting for 12-13% of the GDP. In addition, it can play an important role in food security around the world. Holding the position of the world’s second leading rice exporter, Vietnam’s rice export accounts for 13-17% of the world’s rice export volume.

Some topics in this essay:
East Asian, Asian Financial, ASEAN-countries Vietnam, Africa Vietnam’s, Vietnam Asian, Crisis Asian, North Vietnam, Vietnam’s GDP, Khmer Rouge, Southeast Asia, growth rate, asian financial crisis, financial crisis, asian financial, industrial parks, east asian, vietnamese economy, countries southeast, foreign exchange, export growth, southeast asia, countries southeast asia, export growth rate, foreign direct investment, gdp growth rate,