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Rural Industrial Development in Viet Nam and China: A Study in Contrasts


  • David O’Connor


Apart from size of population and GDP, China and Viet Nam have a good deal in common. Both are economies in transition from socialist central planning to the market. Both were largely agrarian societies on the eve of their reforms and, in both, unleashing the productive forces of agriculture was an important early reform result. Indeed, a rapid improvement in rural living standards is among the outstanding achievements of both countries.In the case of industrial development, the differences in their post-reform experience are more striking than the similarities. In both countries, industry has grown rapidly since reforms, much more rapidly on average than agriculture. Yet, the motor force of industrial growth has been different in the two countries. In China, rural township and village enterprises (TVEs) — first collectively and more recently privately owned — have led industrial growth, with state enterprises lagging far behind. In Viet Nam, growth has been comparable in state ... Hormis leur poids démographique et le niveau de leur PIB, la Chine et le Viet Nam ont de nombreux points communs. Toutes deux sont des économies en transition d’un système socialiste à planification centralisée vers l’économie de marché. Toutes deux étaient des sociétés largement paysannes à l’aube des réformes dont l’un des premiers acquis importants a été la libération des forces productives de l’agriculture. De fait, l’amélioration rapide des niveaux de vie en milieu rural compte parmi les succès remarquables obtenus dans les deux pays.S’agissant du développement industriel, les différences de résultats postérieurs aux réformes sont au contraire plus marquées que les similitudes. L’industrie a rapidement progressé dans les deux cas, beaucoup plus en moyenne que l’agriculture. Toutefois, le moteur de cette croissance diffère dans les deux pays. En Chine, ce sont les entreprises villageoises et rurales — à propriété d’abord collective puis, plus récemment, privée — qui ont tiré la ...

Suggested Citation

  • David O’Connor, 1998. "Rural Industrial Development in Viet Nam and China: A Study in Contrasts," OECD Development Centre Working Papers 140, OECD Publishing.
  • Handle: RePEc:oec:devaaa:140-en

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    Cited by:

    1. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.

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