Vietnamese Economies
A summary of Vietnam's traditional trade and commerce.
Traditional Economies of Vietnam
For most of its history, the economy of Vietnam has been oriented around small, self-sufficient farming communities. Like other Confucian states, Vietnamese society did not value merchants highly. Families raised their own crops, mainly wheat or rice, and livestock, and members of villages assisted each other with planting and harvesting. In most cases, craftsmen resided within each village, forming loose guilds between towns. Larger cities such as Hanoi concentrated artisans within specific quarters, leading to specialized industries in lacquerware, metalworking, and textiles.
Colonial Economics in Vietnam
During the era of French colonialism, Vietnam’s economy was opened and expanded for foreign exploitation. The French improved infrastructure by building railroads, factories, ports, and canals. It extracted taxes from native peoples and controlled the sale of high-demand commodities, including opium and salt. The colonial economy rested on the manufacture of rubber and mining. While their efforts generated immense wealth for France, the common people of Vietnam saw few benefits. Land ownership concentrated among a small class of Vietnamese allies to the French. Increasing poverty and land loss gradually stoked resentment against French rule.
Communism and the War in Vietnam
In this environment, the Communist Party of Vietnam formed. By the 1930s, it had come to dominate the Vietnamese nationalist movements. World War II saw a temporary cessation of French control, replaced by the Japanese. Japanese oversight saw little if any improvements for the Vietnamese, and the nation soon fell back under French rule. Revolutionary parties did not achieve real independence until 1954, a separation that would divide the nation in two. For another 20 years, Vietnam’s economy ground to a halt in the midst of unprecedented bloodshed. The North, led by Ho Chi Minh and the Communist Party, practiced a centrally planned economy. The South, allied with the United States, operated on a free market basis. The war ended in 1975 with the victory of the North, cementing Vietnam as a socialist state.
Modern Economics of Vietnam
Over the next several decades, Vietnam’s government prioritized reintegrating its two halves, recovering from the physical damage of war, and securing foreign investment. Its initial centrally planned economy transitioned to a market-based one, though socialist policies are still favored. Between 2000 and 2017, per capita income has increased from $396 to $2,385. In 2007, it joined the World Trade Organization. Despite general growth, tensions have risen with the market economy, including public concerns over stronger ties to China.
References
Boudreau, John. “Beneath Vietnam's Economic Glow Simmers Discontent.” The National, The National, 20 June 2018, www.thenational.ae/business/economy/beneath-vietnam-s-economic-glow-simmers-discontent-1.742328.
Crawford, Ann Caddell. Customs and Culture of Vietnam. Tuttle Publishing. 2012.
FitzGerald Frances. Fire in the Lake. Little, Brown, May. 2009.
Goscha, Christopher. Vietnam: A New History. Basic Books. 2016.
McLeod, Mark W and Thi Dieu Nguyen. Culture and Customs of Vietnam. Greenwood Publishing. 2001.
Taylor, K.W. A History of the Vietnamese. Cambridge University Press. 2013.
“The World Factbook: Vietnam.” Central Intelligence Agency, Central Intelligence Agency, 12 July 2018, www.cia.gov/library/publications/the-world-factbook/geos/vm.html.
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