Vietnam Challenges in Development

What are the major obstacles in your countrys stimulatement to achieve semipermanent and sustainable offset and in addressing such obstacles what habitual policies need to be put in place, particularly in relation to national technology and innovation force? Vietnams purify process named Doi Moi (Renovation) since 1986 witnessed success of market-oriented changes. Not solo has Vietnam been one of the knowledge bases fastest growing economies (averaging over 7 per cent p. a. gross domestic product growth), it has made great strides towards eliminating poverty, achieved national food security and become a major exporter of agricultural commodities.However, the process of shifting from agricultural dominance to industrial dominance has also created number of negatives effects for the country that public policies should be put in place to address. Three main obstacles, which Vietnam has to face up with, are those issues of growth, society and environs Firstly, the countrys eco nomic growth primarily is factor-based and quantity-based duration knowledge-based development accounts for minimal proportion. The growth made by input capitals (foreign investment, congenital re pedigrees) makes the results do non deserve with investment.IMF experts make a comparison of Vietnam case with Thailand and Philippine in the past 2 decades, when both country experienced same position as Vietnam currently, 30-40% total gross of the nation created 12% growth rate, while Vietnams investment up to 60% of total revenue but growth rate is only 6-7%/year. Its the metre to pay attention on economic speciality rather than just targets setting. Secondly, economic growth in short time has lead to series of social issues.Ine caliber and the gap between rich and poor, rustic and urban, plains and mountainous areas has been widened not only in terms of income but also living standards and chances. The rapid growth of urban economy and manufacture has not been linked harmoniousl y with countryfied economy and society. While many bran-new wrinkles continue to withdraw young struggles from the rural, they also worsen the unbalance of rural family life, gender and age. More jobs are created but unsecured, life in industrial zone or city suburban with rental house, low-income and manual job can not secure a future.The rest of people assay with agriculture, however, the growth of and is being contracted, constraining the application of hi-technologies farming syste agricultural end product (so far mainly relying on in labor and natural visions intense investment) has no longer enjoyed favorable conditions. Agricultural land is scattered m is still based on habitant and qualitative products are low competitiveness. Thirdly, environment is damaged seriously. Pollution is increasing, urban and industry waste is poured to the rural. Some natural resources are over exploited for exports purpose without planning.Fossil fuel is the main source for the economy, technology to create alternative energy is slowly employ. In addition, the occurrence of epidemic, mood changes is becoming complex. Long term polity to adapt with climate change is still in the beginning stage of formulation while the country have to struggle with day to day disasters. In evidence to addressing those obstacles, new strategic orientation should be identified main approaches of public policy in the new period are as follows portion equally the growth results.Remove all barriers and create favorable conditions for the development of resource markets in the rural (labor, land, capital and science and technology) so that the market mechanism and internal capacity of rural people can be mobilized to pose effectively all available resources mobilize abundant rural labor resource, urban savings, and international capital to upgrade rural infrastructure and develop rural services and crafts (including industry and non-agriculture activities in the rural) move the urb an and industry to rural areas, export and take rural labors to the urban.Focus investment on preparation to improve the human resource capability through appropriate vocational training policy develop health care system in the rural, especially in difficult and poor areas stimulate economic sectors to come through services in the urban and favorable areas gradually, narrow the gaps of service theatrical role between the rural and the urban. Stimulate all economic sectors to participate in the development and application of science and technology to create higher quality products.The State should concentrate its investment in science and technology applied for public services in agriculture, extension, in difficult and poor areas come upon clearly necessary criteria and areas for economic-environment balance ensure the sustainable social and environmental development actively make harmoniously economic, social and environmental planningIn conclusion, move into new development p hase, Vietnams development course requires new policy solutions to change investment direction into knowledge-base, mobilize hidden resources, create motivation for a large number of people to achieve a long-term and sustainable growth in which national technology and innovation capability enhancement play an crucial role.