Manufacturing in Vietnam

Low-impact change.

Impact 32.5 · Hidden · Confidence 75

• The update adds substantial historical and economic outcome details (Đổi Mới reforms, private sector expansion, export growth, and shift to light industry) that change the reader’s understanding of Vietnam’s economic transformation and manufacturing trajectory.

Add: Following the Đổi Mới reforms in 1986 the Vietnamese economy transformed from a centrally planned economy to an export oriented economy with the lifting of export quotas the reduction of export taxes to low levels and the encouragement of export activities by the private sector as part of these reforms This ended the trade monopoly of a handful of state owned enterprises and led to a flourishing of the private sector These reforms were paired with concomitant supervision and regulation permitting for a rapid growth in its exports and imports. Add: underutilization of the Lam Thao Superphosphate of Lime plant Vinh Phu Province Vietnam took advantage of its comparative advantage in labour intensive industries through Light industry to lead its rapid growth particularly through the textiles and footwear sectors Light industry between 1992 and 1997 rose from 13 to 37 of total exports of which the textiles and footwear industry accounted for 16 and 11 of total exports in 1997 At the same time the total value of exports also trebled from US 2 58B in 1992 to US 9 19B in 1997 with trade export and import accounting for 52 and 86 in 1992 and 1997 respectively Vietnam had also begun producing and exporting electronics and computers goods during this period with Fujitsu beginning PCB mounting and production in 1995 and 1996 respectively Growth

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