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The years 2000-04 witnessed the new commitments to reform continuation and some progresses were made, especially in the development of private sector and trade liberalization.

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Introduction The Renovation (Doimoi) in 1986 and especially the market-oriented reform in 1989 marked a turning point in history of Vietnam's economic development.

The reforms have brought Vietnam about remarkable achievements in terms of GDP growth, macroeconomic stabilization, export expansion, foreign direct investment (FDI) attraction, and poverty reduction.

It was recognized even in 1996 that the reforms were not keeping pace with economic development.

Moreover, the reform process in general slowed down during the period 1996-99, especially after the Asian crisis.

In 1992, for example, firms were required to have foreign contract, shipment license, sufficient working capital, business license, and trade experience.

In 1997, the conditions were reduced to have sufficient working capital, business license, and trade experience.

However, some have argued that in international comparisons Vietnam's performance is not so spectacular and moreover, there remain many problems for sustaining economic growth and ensuring quality of development.

The overall ambitious goal of Vietnam's Socio-Economic Development Strategy 2001-10 is to accelerate industrialization and modernization process in order to bring Vietnam out of underdevelopment and create a foundation so that by 2020 Vietnam will basically become "a modern-oriented industrialized country".

Dealing with the existing problems and realizing the ambitious development goal cannot obviously be achieved without an appropriate structural adjustment and a considerable improvement of the competitiveness of Vietnamese economy.

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