[PEN-L:11029] Re: Nike hullaballoo in Vietnam

[Louis N Proyect <lnp3@xxxxxxxxxxxx>]

>From Gabriel Kolko's new book "Vietnam: Anatomy of a Peace":

"The IMF [International Monetary Fund] blocked credits to Vietnam in 1985
because it failed to pay its arrears or adopt 'a reasonable set of
policies.' In August 1987, with its reform program capsizing and no
alternatives, the Politburo accepted the IMF's advice to eliminate
subsidies, impose budget controls, and adjust the exchange rate and
pricing system, and decentralize decision making. It also began to impose
hospital and school fees and alter the state investment policy--in effect,
it endorsed the entire IMF package, one that many countries are reluctant
to accept, much less implement."

>From an article "The Development of Capitalism in Vietnam", in the 1994
Socialist Register, by Gerard Greenfield, who is of Jewish-Vietnamese
heritage:

"In the [state-owned] textiles industry, the creation of close relations
with private capitalist entrepreneurs has effectively transferred control
over production to private interests. The most powerful of these private
interests is Minh Phung, who emerged from within the ranks of the ethnic
Chinese merchant capitalist class. Close ties with local party and state
officials saw the emergence of the Minh Phung Production Company
(originally established as a 'collective economic production team' in
1991) as one of the largest private textile conglomerates; subsuming state
textile production units as the HCMC People's Committee [a state
enterprise] retreated into trade and finance. The nature of Minh Phung's
ties to political power-holders was revealed in a recent investigation
into his illegal banking and real-estate activities in which he was shown
to be providing city officials and their relatives with interest-free
loans and new cars. Despite this investigation, state officials have
indicated that policies to facilitate the expansion of Minh Phung's
production and export activities will be implemented in 1994."


Louis Proyect