Varied resources, especially energy. Expansion of manufacturing, including high-tech. Growth of nearly 7% a year. Cheap and plentiful labor.
Weaknesses
Red tape; corruption. State control of economy. Competition for investment from China and Vietnam. $85 billion debt burden.
Profile
For 25 years, the economy has grown by almost 7% a year, fueled by foreign investment and oil. State-owned corporations play a significant role in the economy, which is protected against foreign competition. Non-oil exports, especially manufactured goods, are rapidly diversifying and expanding, but there is concern about the future. Oil revenues are set to decline and competition for investment from Vietnam and China is growing. However, the debt burden eats up 32% of export earnings. Government promises to cut red tape and privatize have yet to be fulfilled, reflecting conflict between advocates of deregulation and the "technologists" who argue that, in the short term, industrialization is more important than profitable state concerns.
