"Export has been the driving force of Viet Nam’s economic growth, and from 1991-2004 export growth rates were 2-2.5 times higher than that of the GDP on average," added Lich. As Viet Nam integrates into the global economy, the doors to its market are wide open to the outside world. The nation has gradually loosened its trade barriers and has actively participated in various free trade issues. Import activities have helped push the national economy towards industrialisation and modernisation. Lich cited as examples the fact that the trade deficiency in 2004 was estimated at US$5.2 billion, while the import surplus was reported at 21.3 per cent. However, up to 94.5 per cent of imports were spare parts, machinery, equipment, materials and technology that serve the nation’s industrialisation process.

The high GDP rate attained over the past 20 years should also be attributed to the rapid development of the domestic market, Lich said.

Between 1992-1996, the total goods in circulation and the turnover of the services sector posted average increases of 34.7 per cent a year while the GDP hit 8.9 per cent.

Between 1997-2002, during the global financial crisis, export turnover and foreign investment rates declined, but turnover from goods circulation and the services sector continued to contribute to rapid economic growth.

Over the last 20 years, the Government has invested a great deal of money in building new markets and upgrading the old. Chains of supermarkets opened in major cities and towns, and a number of free trade areas and border gate trade zones were established.

As trade and Viet Nam’s market developed, citizens began to change their consumption habits. To reduce poverty, particularly among those living in rural and mountainous areas, the Government adopted a number of special policies over the last 20 years to encourage the development of trade, including subsidies for transportation, fertiliser, drugs and food.

The development of a market-based economy has contributed to the nation’s programme of poverty reduction and has narrowed differences in economic development among regions. Trade development since 1986 has also exposed a number of weaknesses, including the widening gap between the rich and the poor; environmental degradation; exploitation of natural resources; decadent and unhealthy lifestyles and the spread of epidemics.

Viet Nam hopes that by 2010 it will have completed the building of a commodity based economy, a key element to becoming an industrialised nation by 2020. To reach this target, trade must become an economic spearhead and must serve as a catalyst for production development and improved living conditions, Lich said.

It cannot be denied that the country’s commodity-based economy is not yet strong or sustainable. Though it has experienced significant growth, the market is also negatively affected by geography. As a result, those in remote areas are likely to remain reliant on direct production and consumption. This practice has created barriers to the free market and the development of a socialist oriented market economy.

The next five year period (2006-2010) is likely to be a critical period for Viet Nam in achieving a commodity-based economy.

To achieve this target, Lich said that all economic sectors must work to attain high and sustainable growth rates, and the trade sector should set the bar for success.