Archive for GDP

Core Causes for Vietnam’s Troubled Economy

Posted in Economics, Politics with tags , , , , , , , on October 5, 2011 by Ian Pham

Vietnam has been struggling to deal with a number of major economic problems over the past year.  The inflation rate of Vietnam’s currency, the dong, has been rapidly rising, while major corporations, such as shipbuilder Vinashin, hovers on the brink of bankruptcy.  According to Bloomberg News (October 5, 2011), Vietnam’s inflation rate has exceeded 20%, becoming the highest of the 17 countries in Southeast Asia.  The country is also facing big trade deficits, brewing difficulties in the banking industry, and continued decline in investor confidence.

Many different causes can be attributed to Vietnam’s economic woes, but none are more prevalent than the corruption and poor, incompetent management that is the Vietnamese government.  It is true that the world is at risk of facing another economic downturn and that many other countries are facing their own economic problems.  However, in the case of Vietnam, the problem stems much deeper than the simple shortcomings of their monetary and fiscal policies.  The problem is what happens behind the scenes of the Communist Party, and how atrociously the government is running the country.

Analysts often describe Vietnam’s economy on the same level as other nations, as if the country was transparent and fair like its counterparts in the global market.  Though this is the fair method of measurement, putting Vietnam on equal grounds with other more democratic countries, it fails to bring to light the real shortcomings of how Vietnam’s economy is run.  It is not just the policies on the surface that is the cause of the downward spiral of Vietnam’s economy.  The economic issues in Vietnam have less to do with the global market, and more with the leaders themselves.

The Political Bureau of Vietnam, the country’s supreme governing body, plays a major role in what goes on inside Vietnam’s economy.  They could care less about the health of their economy, their investors, or even the wellbeing of their own people.  The only thing they care about is maintaining power and filling their own pockets with foreign investment money.  It is a sad truth, but much of the money that should be circulating within the Vietnamese economy is actually flowing right into the bank accounts of Vietnam’s so-called leaders.

Vietnam’s double-digit inflations and bankruptcy of major companies are all due to the fact that their powerful statesmen do not know how to run the economy.  Nguyen Tan Dung has no business trying to shape Vietnam’s economic policy.  He’s a billionaire, with no qualifications whatsoever, where does all the money come from?  Men such as him are the reasons why China is so free to bully their way across the Eastern Sea.  After all, the Chinese Communists are the ones paying off the Politburo in Vietnam, contributing to the repression of the Vietnamese people, and the woes of Vietnam’s economy.

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Going Bankrupt?

Posted in Economics, Politics with tags , , , , , , , on May 9, 2011 by Ian Pham

Here is something that I hope many of you will find interesting.  There is word going around from some analysts, suggesting that the Communist Party of Vietnam is going bankrupt.  This is more than speculation, but since the Communist system is built upon nothing but lies, it is a very real possibility.  How can this be?  Isn’t Vietnam one of Asia’s second fastest growing economies, only behind China, with an annual GDP growth of 7-8%?  Maybe, but maybe not.

Let’s talk about China for a moment.  It is widely believed that the Chinese economy is one of the fastest growing economies in the world.  Strong GDP figures, healthy numbers on the Consumer Price Index (CPI), and so on.  But hold on a minute, how do we know that these figures are what the Chinese Communists say they are?  An article by Taipen Daily editor Justice Litle puts these figures directly into question.

According to Litle, many of China’s claims to economic growth are strongly exaggerated, even to the point of outright fabrication.  In his article, “China Has Reason to be Terrified” (February 25, 2011), Litle goes over the discrepancies in China’s statistics on economic growth, looking at the reasons why the numbers just don’t add up.  To further strengthen his argument, Litle quotes the words of a Li Kequiang, China’s prominent political insider, who refers to the statistical figures as “man-made” and “for references only.”  To summarize, it is possible that the stats for China’s economic growth, as released by Beijing, may be completely untrue.  Though we may not be able to prove it yet, the ferocity of China’s economic growth may be fabricated. Furthermore, it is possible that the country is more of a paper tiger than is generally perceived.

Let’s now look back at Communist Vietnam, who, to the chagrin of your’s truly, always seems to be following in Beijing’s footsteps.  Nowadays, it is believed that Vietnam is the new up-and-coming economy in Asia, with a strong annual growth and ever-increasing market strength.  This general perception, like that of China’s, may also be nothing but pure bull.  Not only is Vietnam’s economy not what its leaders claim it to be, but its condition may actually be worse.  Exponentially worse, as a matter of fact.  Unlike China, who may still have the investment and economic clout to sustain itself, the smaller economy of Vietnam might not even have enough money to keep its economy afloat for much longer.  As a matter of fact, many believe that Vietnam’s economy is set to collapse in the not-too-distant future, taking the Communists with it.

It seems that the Communist regime is not as sustainable as the fools hoped it would be.  Vietnam’s Communist dictators are starting to run out of steam, taking so much money out of the economy that the system itself is now in jeopardy.  Though it is not positively certain that the Communists are on their way out, one should still feel joy in the possibility that their impending collapse may happen very soon.  Vietnam is in need of a revolution, and this need grows steadily stronger with time.  Double digit inflation is plaguing the Vietnamese economy, and this new evidence of statistical fabrication only strengthens the possibility that the Communists are losing grip of their own system.  This may be the breaking point of the Communist regime.  It is obvious that they’ve pushed the people too far, but it seems that they are pushing the system to the limit as well.  It is only a matter of time now, Vietnam’s revolution may not be far away.

The Truth Behind Vietnam’s Economic Growth

Posted in Economics, Politics, Society with tags , , , , , on February 25, 2011 by Ian Pham

Here in the west, analysts like to talk about Vietnam’s rising economy and wealth, but what they fail to see is the plight of the Vietnamese people at the hands of the VCP.  It is true that Vietnam is a fast growing economy, with an annual GDP increase of 7-8%.  However, one should look at the life of the average citizen to get the whole picture.  The Communist Party will do whatever it takes to sustain the country’s economic growth, even at the expense of the Vietnamese people.

Land seizure has become an increasingly serious issue in Vietnam today, as the Party feels no remorse for taking land from the people to further enrich themselves.  In the countryside, they capture the lands of the farmers to establish new plants and factories, polluting the waters and destroying their livelihood.  In the cities, confiscate houses and homes in efforts to carry out new construction projects, even if it means leaving the residents homeless.

The incident with Pham Thanh Son this week is just one example of many discontented citizens under the Communist regime today.  Only days ago, a small gathering of about 500 people came together to protest the Vietnamese Communist Party and their corruption.  Amazingly enough, these citizens have no idea about what’s happening in the Middle East and North Africa right now because government has censored the news so heavily.

Even with all this censorship, the people in Vietnam can still see that there is something wrong with their government.  If only they knew what was happening all around the Middle East right now, they will surely have the fire to invoke their own Jasmine Revolution in Vietnam.  The Vietnamese people are waiting for a change, the only thing they need now is the information.  The government knows this, which is why they’re censoring the internet with such extreme vigour.  The clock is ticking though, the change will come.