Vietnam embarked on doi moi or 'renovation' of its economy in 1986. Since then, its economy has made a dramatic turnaround, achieving a low-inflation sustained growth for most of the 1990s. However, even at the current high interest rates of growth, it will still take Vietnam some 15 years to reach the standard of living that Indonesia currently enjoys. Furthermore, decades of sustained growth will require higher rates of investment than in the past, as excess capacity created under central planning is being utilised. A sound investment climate is essential for the fulfilment of Vietnam's ambitions to catch up with other rapidly growing countries in the Asia-Pacific region. An understanding of how to achieve such a climate in Vietnam is essential to an assessment of the country's prospects now and into the 21st century.
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