One positive sign, though, is the recently enacted Enterprise Law, which seems to be perking up domestic private business. The law, which took effect on January 1, allows private firms to register without waiting for onerous government approvals. From January to April, registrations more than doubled over the same period in 1999. While no one can predict the law's long-term effect, it is widely viewed as a positive step toward streamlining regulations.
Job creation is the government's primary goal.
Certainly, foreign investors were unimpressed by the watered-down amendments to the Foreign Investment Law, passed by the national assembly on May 16. Despite these reforms, the economy is expected to remain stagnant in the medium term. The gains were powered by strong oil prices as well as footwear and textile exports to Europe, which tend to be cyclical and so could slide in the coming months. The dong has remained very stable at about 14,075 to the U.S. dollar so far this year. Rural incomes, however, are shrinking.