Dwight Perkins and Vu Thanh Tu Anh, March 2009
Vietnam has made a remarkable transition since 1989 from a centrally planned industrial sector dominated by administrative allocation of inputs and outputs to an industrial sector governed mainly by market forces. Furthermore, Vietnam accomplished this transition while avoiding the sharp fall in GDP and industrial output that occurred in so many other centrally planned economies. In the 1980s, Vietnamese exports covered less than half of the country's relatively small import requirements and virtually no Vietnamese industries were capable of selling their products in the demanding markets of Europe and North America. Twenty years later Vietnamese exports are twenty fold what they were in the 1980s and industrial products sold around the world are the largest contributors to these export sales.