In 1977, Vietnam became a member of the United Nations.
After many years of prolonged war, the country was heavily devastated. In the 1975 – 1986 period, Vietnam had to cope with innumerable difficulties. The aftermath of war, social evils, the mass flow of refugees, war at the southwest border against the genocidal policies of Pol Pot government in Cambodia, the dispute at the northern border, the isolation and embargo from the United States and Western countries, plus continual natural calamities ...put Vietnam before tremendous tough challenges. Moreover, those difficulties became more severe due to subjective reasons such as hastiness and impatience, and voluntarism in rebuilding the country regardless of specific actual conditions. Early in the ‘80s, Vietnam witnessed the most serious ever socio-economic crisis, the inflation rate rose up to a record 774.7% in 1986.
Since 1986, the government launched the "Doi Moi" or all-round renovation process, stepping in the general development trend and the process of gradual globalization and regionalization. The 6th Congress of Vietnam Communist Party in December 1986 strictly self-critised its mistakes in the past years, assessing carefully its achievements, analysing mistakes and drawbacks, setting forth all-round renovation policy. With top priority being given to economic reform for creating a multi-sector market economy regulated by the Government’, at the same time consolidating legal environment and renovating Party’s and State’s structure. Since then the Vietnamese economy became opened and transformed from centralized planned economy heavily based on imports to a market-oriented one. The self-determination of financing was introduced. All aimed at budget balancing and promoting exports. As from 1989, Vietnam began to export about 1 - 1.5 ton of rice, inflation rate gradually decreased (the rate stood at 67.4% in 1990), living standards were improved, democracy got enhanced, national defense and internal security got firmly consolidated, the external relations were broadened freeing the country from blockage and isolation.
In June 1991, the VIIth Congress of the Vietnam Communist Party reaffirmed its determination to pursue the renovation process overcoming difficulties and challenges, stabilizing political situation, pushing back unfairness and negative activities, directing the country out of crisis. The Congress also set forth the foreign policy of multilateralization and diversification the guideline "Vietnam wants to be friend all other countries in the International Community for , Independence and Development".
Despite the drastic impact of the collapse of the former Soviet Union and the Eastern European Socialist countries that took away Vietnam's traditional markets, the continual suffering from blockage and embargo and the unceasing confrontation of inside and outside hostile forces, Vietnam step by step surpassed many difficulties, hindrances, and achieved great results. During the 1991-1995 period, the economic growth rate (presented by the increase rate in GDP) reached 8.2%. By June 1996, Foreign Direct Investment (FDI) reached over $ 30.5 billion; inflation decreased from 67.1% (in 1991) to 12.7% (in 1995) and 4.5% (in 1996), living standards of the maijority were improved. The People's cultural and intellectual standard got further increased. Generally, Vietnam has made a lot of progress in the fields of education, health care, culture and art, sports, family planning, public media, and other social activities. The political situation, independence and sovereignty of the nation, national security and defense have been maintained stable, thus actively facilitating the "Doi Moi" process. The political system from central to local level was consolidated; the State's rule and law has been firmly constructed and increasingly made perfect. The foreign policy of independence and sovereignty multilateralization and diversification has brought about great results.. By now, Vietnam has established diplomatic relations with 164 countries, trade relations with over 100 countries, and attracting foreign investment from more than 50 countries and territories.
The VIIIth Congress of the Vietnam Communist Party in June 1996 reviewed achievements recorded during 10 years of renovation (1986 - 1996), laying targets for development by the year 2000 and 2020: focusing on promoting industrialization and modernization.
Industrialization and modernization is aimed at developing Vietnam into an industrial country with a modern technical and physical infrastructure, rational economic structure, a progressive productional relationship in conformity with production level, a firm national defence and security, for wealthy people, strong country, just and civilised society. From now to the year 2020 it is highest time to strive to develop Vietnam into an industrialized country .