Thanks to globalisation, Viet Nam can offer lower wages and close proximity to Chinese maikets to attract industrial and service firms from China. Globalisation also offers new opportunities in tourism, especially agio and eco-tourism, in which Viet Nam has a natural advantage. However, with 47% of the population still involved in agriculture, increasing agricultural productivity is a vital component of rural development. Diversification into higher value crops and developing the food processing industry can build on the strong agricultural base in rural areas.