Development of the Vietnamese Iron and Steel Industry under International Economic Integration

This study discusses the development of the Vietnamese iron and steel industry under international economic integration. In particular, this study investigates what type of enterprise was responsible for this development, as well as the economic and managerial logic that can explain this development. The analysis provides suggestions for industrial development under international economic integration in developing economies. Under trade and investment liberalization, private enterprises and foreign capital firms have been the main participants in the development of the Vietnamese iron and steel industry. However, such development did not occur via a simple laissez-faire approach. Each enterprise type and the government faced challenges. Ownership and management reform were required of state-owned enterprises, and local private enterprises had to ensure market creation through innovation, by making full use of the local condition. Foreign enterprises had to introduce the huge funds and state-of-the-art technology. Moreover adaption to local society influenced their projects' progress. Thus, the government should review and monitor large-scale projects from both economic and social viewpoints. The Vietnamese iron and steel industry recorded steady growth because some of these conditions were met, while some unachieved conditions caused problems. This case suggests that industrial development under international economic integration is possible. In addition, such integration requires not only a market mechanism but also an entrepreneurial spirit that encourages market creation and government policies that complement the market's role and resolve social issues.