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Industrial development in Vietnam aginst the background of globalization and international integration

In this paper, we present major features of modern times from an economic aspect and consequences of industrialization, manufacturing sector in Vietnam today and suggested solutions to its future development. | Prospects of economic growth & development 1. Major features of modern times from an economic aspect and consequences of industrialization sciences and technologies develop very fast producing goods of superior quality and life circle of products contracts. it is the fast development of sciences and technologies that affirms marx’s famous saying, “what distinguishes one economic stage from others is not what is produced but how it is produced.” this leads to the fact that the choice of product strategy that taps full potential advantages of a company or a country is not as important as ways of producing that product. Globalization and economic links become more extensive and intensive. internationalization of production and labor division become widespread producing the so-called “global production network and value chain.” As a result, the market for each company expands not only within domestic mar- in 2011 kets but also on the international one. companies can get access to markets governed by free trade agreements and preferential tariffs but they also face very fierce competition from international rivals on both international and domestic markets because all tariffs are cut to the bone. this situation leads to changes in models of industrialization in the following directions: - Before the 1980s, protectionism was very common. industrialization was oriented towards substitution of imports and based on two conditions: (1) high tariff barriers and non-tariffs measures were used for reducing import and protecting local production; and (2) competition on domestic market was encouraged by facilitating development of private sector. Due to the protectionism and domestic competition, companies could replace their technologies and improve management to cut production cost, Economic Development Review - January 2011 7 Prospects of economic growth & development 2011 deal with competition and develop their industries. Japan and south Korea were good .