3-4 Presentation by Prof. Dr. Hajime Inamura
The Role of Physical Distribution in Industrialization
1. Aims and Methods of Industrialization
The theme of this paper is not whether industrialization is to be seen as a priority for the future of Vietnam. Countries aim to promote industrialization for various reasons, which normally include the following:
1. Increase national income;
2. Create jobs;
3. Acquire foreign currency;
4. Substitute imports (save foreign currency).
The industrialization may be achieved via various methods, such as:
1. Promotion of local industry;
2. Promotion of industries with comparative-advantage
3. Development Of "One-Set" type industries;
4. Attracting foreign enterprises;
5. Development of free-trade zones (FTZs).
These aims and methods are interrelated and, in many cases, combined into integrated policies or strategies. However, the form of industrialization may change greatly depending on which aims and methods are given priority. The aim here is to review the processes of industrialization and the role of physical distribution looking at the experience of Japan and Thailand, an ASEAN member a step ahead of Vietnam in industrialization. The two countries have been chosen for comparative purposes as the three share many common features, and due to the relative ease in obtaining data.
As can be seen from the comparative geographical and social data in Table 1, differences in territorial area and population among the three nations are relatively minor, making comparison easier.
1. Vietnam's per capita GDP is very low at $270 on a nominal basis. However, it is $1,310 if based on purchasing power parity (PPP), which is almost at the level as that of Thailand in 1987 in its early stage of (or prior to the beginning of) industrialization. Thailand increased its national income three-fold within seven years from 1989.
2. Vietnam's nominal per capita GDP in 1989, was $130, or half the present level. The hyper inflation of that time, almost 800%, was controlled, and the rise of the CPI
