Chapter One. Coping with Changes and War, Building a Foundation for Growth

Abstract

This chapter aims to provide a broad overview of economic development in the Republic of Vietna (RVN) under both republics. The long-term perspective is useful to gain a sense of the republic's achievements and failures over two decades. It also dwells at some length on the activities the chapter's author was personally involved in since the mid-1960s. The chapter reveals the challenges of economic development. For instance, there was no capital to use on big government projects, nor was there any manpower or organizations to develop an expertise in any specific field. Furthermore, it showed that the RVN sometimes tried to interfere with the markets, to control prices, prevent speculation, and deprive the enemy of food supplies. But the main task for those working at the higher echelons of the RVN at the time was to simply establish solid legal foundations, foster strong institutions, implement sound policies, and practice good governance.