From the ancient human history to the modern society nowadays, there are not many nations or communities which are able to develop without exchange relations or communicate with other countries in all aspects of life such as economics, politics and culture. Therefore, international communication or globalization appears as the most popular relation. It is considered as not just a condition but as an essential result for all social development process. As a consequence, globalization has become an international inevitable trend of the humanity in over the last few decades.
The substantial increase of globalization is associated with the development of economy, society, science and technology as well as the challenges for most command economies and Vietnam is not an exceptional of that vortex. The main purpose of this paper is aim to discuss the core theoretical of globalization in both advantage and disadvantage effects that leading many command economies to concur and approve a common market format and illustrate how Vietnam is experienced of this phenomenon.
Understanding In the last few decades, the term of globalization has become a protractedly debated issue at all segments of the society in all over the world. Although there are no accurate and specific definition that offered to describe the term “globalization”, people are still aware of its open driven characteristics that spread out over a tremendous background that shaped the international trend to an unprecedented homogenized.
Some researchers and experts have argued that because of globalization interpretation is found from Western values and perceptions, others societies that not from the West would find it’s difficult to approve it completely (Ahmad 2003, Oka 1998). However, in order to clearly illustrate the effects of globalization to the nowadays society, there is a definition that could be seen as the most reasonable explanation for this phenomenon.
According to a study conducted in 2006 by Dr Nayef Al-Rodhan, a director of Geneva Centre for Security Policy, globalization refers to a process that comprehends the causes and effects of transnational and transcultural consolidation of both human and non-human activities. Regardless of it multi-affected characteristics, globalization has been predominantly associated with economic circumstance which denotes recent evolution of the global economy including the significant development of economic transactions across the geographical frontiers.
Therefore, economic globalization creates certain effects in both positive and negative fields for those countries that involved in. Globalization brings many undeniable benefits to the development of a nation. First of all, it creates the ability to develop and dissemination of information technology and telecommunication facilities. Therefore, it promotes the growth of economy and commercial trading as well as implying the creation of implicating objective economic regulations in a vast global area. Additionally, it facilitates the exchange of culture widely, making people get closer together.
Globalization also offers the potential solutions to solve some common issues which are consequences of economic globalization and social development. For example, the advantages of globalization can be clearly seen on the changing and development of India’s economy since the nation economic reform in the early 1990s (Basdeo 2006). He also states that after India became an official member of the World Trade Organization (WTO) and the Group of 8 (G8), the India’s economy started to change significantly and fleetly to the advantages of more open, liberalised economy.
Due to the development of technology in transportation and the natural barrier to trade of communication decrease, the international trading arrangements increase the importance. Another noticeable example of gaining benefits from globalization can be found in the context of China’s economy. According to Mamman and Liu (2008), it could probably state in all developing and transitional economies, China is the most benefited from economic globalization.
Although the world economy was heavily affected by economic crisis, the Chinese’s export and import have been soared from USD 2. 1 billion to USD 14. 79 billion between 2003 and 2006 compared to other economies in the same region. Thus, it enabled China to attract huge number of potential international investments like foreign direct investment (FDI). For these reasons, it can be clearly affirmed that globalization bring enormous benefits to all the economies that converge and adopt it. Despite the fact that globalization could make the world become a better place, it may be simultaneously lead to having problems for the economy that participated in (Sorman, 2008).
For instance, in term of society, most countries currently are facing a lot of common problems in the development of national economy such as the ecological problems, environmental pollution and resources depletion, population issues, public health concerns, larger rich-poor gap and increase crimes. In politically, people commonly refer to the serious challenges of globalization to the national sovereignty. This could be explained by the impact of political on economy. The economic integration will probably will lead to rising political integration.
For this reason, people are considering about the weakening of the nation-state model. In the context of current globalization, they often talk about the interdependence of the nation rather than referring to the complete dependence of the country. This could be stated that there cannot be a stand-alone country that completely isolated from the whole world. Application Having looked at the general background of globalization as well as its positive and negative effects, this paper will now examine how Vietnam experience this phenomenon by looking at a recent new article in the Viet Nam News website.
In his article “Mekong Delta records high growth in first six month”, published in July, 19 2013, Duy Khuong presents the achievement of Mekong Delta provinces in the first six months of 2013 which the average economic growth rate reached 9%, doubled the average rate of the entire country. However, by providing statistics from Steering Board for the Southwest Region, the author pointed out that one of the biggest issues faced by Mekong Delta residents is the low sales of three major commodities including fruit, seafood and rice. The main reason can be blamed for the downturn of both global and domestic economies.
In order to finding solutions for helping reduce the number of poor people in Mekong Delta, Deputy Prime Minister Vu Van Ninh highly appreciated the successive coordination between the government agencies and the Steering Board for the Southwest Region for removing difficulties in production and business sector, increasing consumption of goods as well as dealing with bad debts. Furthermore, guidelines on the implementation of resolution for the rest 2013 provided by the National Assembly and provincial People's Committees must be supplied to reach the 2013 target.
Additionally, as mentioned in the article, a forum called “Mekong Delta region, toward a green economy” is going to take place in Vinh Long provinces in November of 2013. The forum activities will consist of trade fairs and exhibitions which attracting over 500 domestic and foreign businesses. The forum mainly concentrates on problems related to social welfare and investment to struggle against climate change. Nonetheless, the most important aspect for conducting the project is financial sources. For this reason, the organization has corporate with the State Bank of Vietnam to work out VND 499 billion (USD 23. 8m).
All of the fund will be used for building and enhancing facilities and infrastructures such as nursery and schools. Referring to the current situation of Vietnamese economy, after many years of post-war readjustment, Vietnamese government replace the policies from feudal society to socialist orientation and aim to join the industrialized countries club by before 2020 simultaneously (CPV, 2011). Therefore, by approving the process of globalization since the economic revolution in 1986 and the accession to WTO in 2007, Vietnam has created huge opportunities for foreign investors to exposure Vietnam’s market (KPMG 2011).
Moreover, according to KPMG (2011), Vietnam has a lot of comparative advantages to converge and adopt the development process of globalization such as high economic growth rate, under control inflation, flexible economic structure, young, hardworking, highly literate, and easy to train labour forces. On the other hand, Vietnam is located on the artery marine and aviation route trade between the Indian Ocean and the Pacific Ocean, Europe, Middle East to China, Japan and other countries, Vietnam therefore Vietnam has emerged as a vital strategic location.
Vietnam also has the enormous amount of natural resources such as petroleum and minerals. As a consequence, Vietnam has been become one of the most attractive destinations for international investment. In order to achieve this goal, Vietnamese government must have a positive, proactive diplomatic strategy with multi-cultural and diversity relationships with all countries in the world based on the basic of respectful to the equality right and positively contribution to the world peaceful (Quang Truong, Heijden & Rowley 2010).
These foreign policies will be specified by the participation in the world economic organizations like WB, WTO, IMF and APEC, ASEM, ASEAN in the Asian region. Integration will create tremendous opportunities for the country to develop, but also bring a big challenge if Vietnam does not have adequate strong internal resources. Vietnam will be at risk of falling behind far more with developed countries. In order to enhancing the competitiveness of the economy, Vietnam should start planning for economic development based on a consistent national position.
We need to improve the competitiveness of the economy in all sectors including agriculture, industry, and services. Improving competitiveness here does not mean that widespread vast investment, lack of focus, but it's promoting the competitive advantage of nations. More specifically, on the one hand, we must be aware of the need to maintain and develop the economic sectors that is vital to ensure the stability of the national economy.
Nevertheless, we must realize to invest in the industry that is able to generate key breakthrough for Vietnam in the global competition such as tourism industry including ecotourism and cultural tourism. Conclusion In conclusion, the purpose of this paper is to examine the general meaning of globalization and economic globalization by looking at some well-known perspectives and point out some positive as well as negative connotations of being converge and adopt globalization. The finding from a newspaper article has potential implications for practice.
Therefore, this could be easily to look at how Vietnam is experience of the phenomenon and from there giving some recommendation for Vietnam to develop the national economy. In summary, Vietnam meets the conditions both inside and outside to be able to join hands to unite, build and develop the country becomes powerful and contribute to the peaceful development of the entire humanity. So, once again we will promote solidarity, creativity, kindness of the Vietnamese culture to confidently assert themselves in the world of globalization for the development of the individual, the nation and all humanity.