iven tax breaks in their first year, some companies were allowed to obtain bank loan and set their own prices while exporters were authorized to borrow foreign currency to import raw materials. There were higher cash incentives for peasants and workers. This lead farmers to earn almost 40% profits. ( Gibney 47). The government too began awarding bonuses and piece-rate wages to reward hard workers. In 1988, there were new investment laws that attracted overseas capital. The main investors were Taiwan, Australia, France, Hong Kong, the United States and also, Malaysia. In 1989, as communism seemed to be collapsing elsewhere in the world, Vietnam flung open its doors to foreign investment. The economy has been growing at an annual rate of 7% to 8% over the past three years. In February 1994, when the U.S. dropped its 19-year trade embargo, aid and investment began to flood in. (49). This led jetstreams of investors into Vietnam. Western companies such as Coca-Cola, AT&T, and Motorola all invested heavily in the country. This lead Vietnam to grow very fast. Population continued to grow by about 1 million a year. By the 1990, the country's exports were up to about $800 million U.S dollars while imports totaled nearly $1 billion.( World 157). Vietnam's most lucrative business were oil and gas. In addition, it is in this sector of the industry that attracted the most attention of foreign investors. British Petroleum was the first western firm to make a significant contribution to Vietnam's growing economy. Tourism has helped Vietnam grow too. The Vietnamese government were promoting tourism in an effort to earn more hard currency. In addition, Vietnam succeeded in exporting 1.69 million tons of rice making it the third largest exporters of rice in the world. (Moise 49). From the border with China in the north to the rice mills of the Mekong Delta in the south, Vietnam is humming with activity. Hong Kong investors have been allowed t...
