QUOTE(nomad @ Oct 24 2007, 04:15 PM) [snapback]3283318[/snapback]
How? It has been our money sent back that provided for much of the people and the government knows it.
What?
You should take some economic lesson man. You sound really stupid.
First, it is not your money. Most figures are calculated as a sum of money sent back by people living overseas, which include:
- Vietnamese labour export working in Asia and Europe (in 2005, est = US $ 1.7 billion).
- Vietnamese people living overseas (from France, USA, former USSR, Australia, etc) which are both CHXHCNVH and VNCH supporters. Assuming you are one of those VNCH, they are certainly not all your people.
Second, although the money sent back does represent an injection of money which increase people's disposable income, which will contribute to an increase in GDP (by timing it with a multiplier), it doesnt do much to increase Vietnamese worker productivity. It is just money, there is no knowledge component in it.
And Vietnamese tends to spend like mad when they have an increase in disposable income. Our marginal propensity to consume is very high, our private consumption is as high as 60% of our disposable income, similar to Southeast Asian economies. China's private consumption is much lower, similar Northeast Asian economies. High private consumption is not as good as high investment (or saving) because with investment, it will facilitate an increase in productivity through technology. This is very important for long term development.
FDI is an injection of money in economy like overseas remittance. It also increases our GDP through the Keynesian multiplier. However, FDI will often go with technology and employment so it can increase Vietnamese productivity for long-term economic growth. Vietnam's FDI in 2007 is probably US $ 12 billion, way more than overseas remittance.
Government spending is also important. They need to focus on investment for long-term capacity building rather than short-term consumption.
Most FDI flows into Vietnam are from Asian investors. Overseas Vietnamese' investment is tiny, tiny by comparison.
There you go, a quick macro-economic lesson for u. Next time, think before open your mouth.
