By Keith Griffin (eds.)
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Additional info for Economic Reform in Vietnam
4 contains a summary of some of the basic facts about the inflow of foreign direct investment in Vietnam. One distinguishing feature of foreign investment in Vietnam is that a 27 Azizur Rahman Khan very high proportion (82 per cent of the total committed and approved during 1990-94) is in joint ventures, typically with state enterprises. 10 As noted above, the data on FDI include investment in a joint venture by the local Vietnamese partners, which is largely financed by borrowing from the parent company of the foreign enterprises.
One of the tasks of government during a period of transition from a planned economy is to create the institutions that are needed in every market economy. There seem to be three immediate priorities for institution building in Vietnam during the next phase of the transition. First, there is a need to establish a comprehensive system of commercial law. Market economies operate on the basis of contracts and for markets to operate efficiently, it is essential that contracts be legally enforceable and that property rights be well defined.
93, December 1983, reprinted in his Resources, Values and Development (Oxford: Basil Blackwell, 1984). See, for example, Keith Griffin, 'Foreign Capital, Domestic Savings and Economic Development,' Bulletin of the Oxford University Institute of Economics and Statistics, Vol. 2, May 1970. This is recognized by the government itself which states that the official estimate 'no doubt considerably understates the GDP, since there is a large informal economy'. (Government of Vietnam, Vietnam: A Development Perspective, document prepared for the Donor Conference, Hanoi, September 1993, p.
Economic Reform in Vietnam by Keith Griffin (eds.)