Vietnam's economic policy reforms began at the end of the 1970s and by the end of the 1980s the economy was moving towards a free market. The restructuring process has been protracted and difficult, but the changes that have been made are fundamental and radical and have farreaching consequences. The macro-economic reforms have created a conducive business environment, and the free-market economic activities now possible have contributed tremendously to Vietnam's economic growth.

This rapid growth comes at a price, however. The policy changes implemented to restructure the economy were disruptive and have not left the social fabric intact. Fortunately, the definite progress made in raising the living standards of the population enables the economy to withstand some inevitable negative effects on society. Vietnam is thus spared of the chaos and disintegration that some of the East European countries experienced when their economies underwent restructuring.

Nevertheless, more needs to be done before Vietnam can become a full-fledged market economy. Important decisions have to be made with regard to issues such the strategy of long-term development, the role of the state in a market economy, the balance between economic growth and social equity, and natural resources and the environment. This calls for a team of capable and judicious policy-makers with the courage to make difficult decisions for the good of the country.

As a participant in the global economy, Vietnam has to deal with external constraints as well as internal “bottlenecks” to its economic growth and development. These include:

1. • limited foreign exchange, capital involvement, and international assistance because of the continuing U.S. embargo against Vietnam;

2. • the lack of an adequate infrastructure;

3. • the lack of adequate market economy managerial know-how.

With a pragmatic leadership, Vietnam can certainly overcome constraints and consolidate its growth in the near future.