Vietnam Economy

In 1977, the management style changed and reforms were instituted, the reforms formulated production plans, arranged production resources and contained production expenses. Additional reforms were adopted in incentive-structured wages and the streamlining of prices that reflected the costs were put into consideration. Handicrafts and light industries were not able to solve problems that were associated to agriculture as a source of raw material. It resulted in many food-product, grain and consumer goods enterprises ceased or reduced production in 1980.

This resulted in food shortages especially fish and grain, which resulted in the decrease of consumer goods and resulted in lessening workers’ incentives. The industrial sector in 1985 accounted 32% of the national income, which approximated 20% in 1980. The period of 1981-1985, industrial success was unevenly distributed and in most cases, the production levels were those of 1976. The manufacture of paper products and food processing were the highest production sectors. For example, the production sugar increased from 271,000 (pectinase and cellulase in apple juice production) tons to 434,000 (1985).

Additionally, the fishing industry improved dramatically within the same period (Smith 2008, pp. 125). By 1985, brick production reached 3. 7 billion bricks, which was a change of regular decline. Glass production reached 41,000 tons exceeding previous records. In early 1981, paper production was 42,000 tons, which increased to 75,000 tons in 1985. The textile industry grew by 8% by 1985 (Alpert 2005, pp. 56). By 2004, industry contributed to 40. 1% to GDP and employed 12. 9% of the workforce.

Non-state activities contributed 22. 4% of the industrial production. In the period of 1994-2004, the GDP of industrial production increased at an annual average of 10. 3%. The same period saw manufacturing GDP increase at an annual average of 11. 2% resulting in employment 10. 2% of the work force. Therefore, the manufacturing industries are cigarettes and tobacco, food processing, chemicals, textiles, and electrical goods. All this manufacturing and industries are located in Ho Chi Minh City.

Energy in Vietnam In the early 1980s and late 1970s, the production of fuel increased by 10%. The coal output was 5. 3 million tons in 1980 a drop from 1978 6 million tons. In 1985, the coal that was produced was 6 million tons. Thus, coal was the main energy that was used in 1980s and accounted to two-thirds of energy. However, some issues that affected coal sector including management in mining sites, shortages of materials and equipments and inadequate consumer and food for the miners (Smith 2008, pp. 127) . 

The electric power sector had some problems that constituted uncompleted projects and lack of spare parts and oil. Nevertheless, the electric power sector by 8% in 1978-1980. Electricity that was produced increase by 60% in the period of 1976 to 1978 by 3. 8 billion kilowatt hours. In 1985, the electricity production increased to 5. 4 billion Kwhs. The sector developed at a lower speed causing power shortages that made many industries and manufacturing plants to operate 45 to 50% of their capability.