Eighteen months ago, Vietnam's economy developed smoothly with annual export growth of 25% and more foreign funds seeking investment opportunities in Vietnam. Today the situation has changed very much. Sudden impact from the outside due to the financial crisis in East Asia caused to Vietnam through the sharp decline of foreign direct investment and the stagnation of exports are rated the equivalent of about 3, 0 billion, or 12% of GDP. It is hard to adjust to the growth momentum after a strong impact because the intrinsic growth rate of Vietnam has stalled due to delays in the progress of the Renewal in the period 1995-1997. In addition, Vietnam also suffer natural disasters last year, including a big storm and a severe drought makes income in some rural areas is reduced.
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