Vietnam - Vietnam, Cambodia, Laos and Northern Thailand - page 333

UNDERSTAND VIETNAM
TOP OF CHAPTER
Vietnam Today
Vietnam has had a good couple of decades; a period of rising, sustained growth has be-
nefited most. The standard of living has risen markedly, as cities have been transformed,
education and healthcare have improved and the tourism sector continues to thrive.
Yet a growing disconnection between a heavy-handed state and its people is evident,
with widespread resentment regarding rampant corruption and evidence of growing, if lim-
ited, political dissent.
Politics & Economics
Vietnam's political system could not be simpler: the Communist Party is the sole source of
power. Officially, according to the Vietnamese constitution, the National Assembly (or par-
liament) is the country's supreme authority, but in practice it's a tool of the Party and care-
fully controlled elections ensure 90% of delegates are Communist Party members.
The state still controls around two-fifths of the economy. More than 100 of the 200
biggest companies in Vietnam are state-owned and the key sectors of oil production, ship-
building, cement, coal and rubber are government controlled. Many of these state-con-
trolled businesses are in deep trouble and haemorrhaging money.
Corruption scandals are frequent.
North & South
The Vietnamese economy has been buoyant for 20 years, but some areas are more buoyant
than others. In 2013, Ho Chi Minh City's economy was growing at almost double the na-
tional rate (8.1% compared to 4.3%). It's the south that's benefited most from inward in-
vestment as Viet Kieu (overseas Vietnamese, the vast majority of whom are southerners)
have returned and invested in the region. The government is aware of these divisions and
tries to balance the offices of state, so if the prime minister is from the south, the head of
the Communist Party is from the north.