Developing Vietnam Obstacles to Development in Vietnam

Introduction

The 2009 population census shows that Vietnam has a population of 95.3 million people with an average of 310,000 square kilometer of land. They have 45% forest cover while up to 35% of their land is used up for Agricultural practices. Their GDP stands at $695 million while their income per head is $6400 ranking them at position 161 in the world. In 2016 their GDP growth rate stood at 6.7%. a number of factors could be attributed to the low rates of development in Vietnam; they include; Lower competitive capability of the country, Inefficiencies in consumption of resources, Instability in the structures of economic growth. Little gains have been made in trying to reduce the poverty levels in Vietnam. Most of the rural areas which are mostly inhabited by the minority community groups have been stricken by abject poverty and some families live below the dollar mark per day. This has a direct relation to growth of labor hence registering slow progress in development.

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How These Obstacles Prevent Development

Vietnam's local companies have lower levels of innovation compared to countries like Malaysia and Thailand. It has a weaker currency compared to other global currencies with a smaller percentage of human resource having the necessary knowledge and skills for a dynamic economy. For Vietnam to improve its performance in the GDP, the country will have to improve its production capacity. This will entirely depend on how well its resources; both human and material are channeled to support its innovative activities. Developing a strong innovative culture will equip their citizens with knowledge and skills for income generation.

Both natural and human resources have been underutilized by the Vietnamese population to maximize on their potentials to generate income. Natural resources such as land for cultivation, water for irrigation and generation of power and natural ecosystems such as forests and wildlife have not been exploited to achieve their full potential. Such resources when put into maximum use could be a source of income for populations therefore improving their standards of living. Better living standards will translate into having social amenities such as schools and health centers accessible to a majority of the population. Poor utilization of resources which inhibit resource productivity and sustainability lead to reduced green growth policies. It had devastating effects to the environment and reduces the quantity of resources required to achieve competitiveness and achieving a sustainable growth in the economy. Mismanagement of natural resources can lead to decline of essential raw materials such as timber which would have otherwise been used for income generating activities.

The regional and national employment patterns of Vietnam have affected its growth patterns. The countries employment rates which measures the total number of people who are job searching as a percentage of the labor force recorded a 1.63% in 2014. Increased levels of unemployment can lead to social problems. Since labour is one of the major factors of production, high levels of unemployment have a positive correlation to decreased levels of economic development. Unemployment can also be attributed to poverty and inequality in Vietnam.

A closer look at Vietnam's labor relations reveal that the minimum wage and non wages regulations negatively affect the private sector, therefor reducing competition at the export markets. Hurting the private sector could in turn translate to decreased growth rates at the public sector which is relied on by many of its citizens.

Recommendations

The Vietnamese government can create mechanisms for funding that are contingent on financial education and mentorship. This will be aimed at creating an entrepreneurship culture among its youth equipping them with knowledge and skills to be innovative to come up with income generating venture. At market level, the government can create an environment that encourages competition in industries. An environment with increased competition will force firms to invest more on technology and marketing strategies in order to remain afloat in the market. This increases productivity as the quality of both human and material resources is increased to match those employed by competing firms.

Formulation of policies that are aimed at ensuring sustainable consumption and production patterns. These policies will promote energy and resource efficiencies and assist in easing access to basic services decent jobs and improved standards of living for Vietnamese citizens. Since human beings are the basic ingredients of sustainable development, encouraging an increased participation of people to sustainable development initiatives will ensure a civilized population who are mindful of future generations. Creating an environment where citizens have the opportunity to participate in building and developing their talents and to sparingly use and exploit nature's resources, improve and preserve the living environment, create a learning and environmentally friendly learning environment and sustainable production and consumption of resources.

Vietnam can use its available resources, both human and material to invest in different economic sectors and in developing sophisticated products that are needed by the market. They can also invest in innovation and in technology to increase their competitive advantage in the international markets. Mechanization of keys sectors of the economy such as agriculture will decrease production costs while at the same time increasing outputs in the agricultural sector hence increased income.

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