<p>Since the “Doi Moi” process started in 1986, the Vietnam economy has achieved a fast economic growth of 6~7% per annum except during the period of the ‘Asian Financial Crisis’ in 1998. Meantime, inflation and exchange rates have been stabilized, and the ratio of current account deficit to GDP is sustained at around 4% since 2004. Unrequited transfer as a major credit source of current account is around 5% of GDP and it shows an increasing trend. Meanwhile direct investment as a major source of capital inflow is about 4% of GDP. Total external debt dropped to 36.4% in 2004, which was 329% in 1989. The international reserve of Vietnam retains imports of 2 months, but at least 3 months of imports is advisable. The fiscal deficit should be kept at a rate less than 5% and Vietnam currently maintains a rate around 4%.</p>
<p>Despite the above achievements, drawbacks and problems exist in the socio-economic situation of Vietnam, which the Vietnam government should manage wisely and successfully. Therefore, the Korean government initiated knowledge sharing programs based on the Korean economic development experiences, in order to assist the Vietnam government to solve the current hot issues of the Vietnam economy.</p>