Asia Pacific business
Vietnam growth has majorly been contributed by the government intervention through its focus on socialist market economy. Although the Vietnam has various State enterprises, the open door policy that was established in the early 1980s enabled the country to create a favorable environment for private companies and foreign investors across the region. The Vietnam government embraced measures to counter the socio-economic issues facing the country such as poverty, illiteracy and promote social equity. The inability of the State Enterprises to effective in countering social issues in the country led to growth of non-state and foreign investors.
The transition from centrally planned economy to socialist-oriented market economy led to the ratification of the Foreign Investment Law which opened the trade of the country with other countries in the region (Beresford, 2008). The policy reform was implemented due to the fact that the country was the least in-terms of foreign investment in the region, and it was a good strategy for catching up with other countries in the region especially China. The attraction of foreign investors has significantly helped the country to counter its challenges such as significantly reducing poverty. The rising of the ASEAN which Vietnam is a member was also an opportunity for Vietnam to increase its regional economic integration. Evaluating the performance of Vietnam prior to…….