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VIETNAM

The conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by Communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the Communist North and anti-Communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under Communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The country continues to experience protests from various groups - such as the Protestant Montagnard ethnic minority population of the Central Highlands and the Hoa Hao Buddhists in southern Vietnam over religious persecution. Montagnard grievances also include the loss of land to Vietnamese settlers.

LOCATION

Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, alongside China, Laos, and Cambodia. Slightly larger than New Mexico.

POPULATION

82,689,518 (July 2004 est.) Buddhist, Hoa Hao, Cao Dai, Christian (predominantly Roman Catholic, some Protestant), indigenous beliefs, Muslim

NATURAL RESOURCES

phosphates, coal, manganese, bauxite, chromate, offshore oil and gas deposits, forests, hydropower.

NATURAL PROBLEMS

Logging and slash-and-burn agricultural practices contribute to deforestation and soil degradation; water pollution and over-fishing threaten marine life populations; groundwater contamination limits potable water supply; growing urban industrialization and population migration

GOVERNMENT AND POLITICS

Communist state

name: Hanoi
geographic coordinates: 21 02 N, 105 51 E
time difference: UTC+7 (12 hours ahead of Washington, DC during Standard Time)

59 provinces (tinh, singular and plural) and 5 municipalities (thanh pho, singular and plural)
provinces: An Giang, Bac Giang, Bac Kan, Bac Lieu, Bac Ninh, Ba Ria-Vung Tau, Ben Tre, Binh Dinh, Binh Duong, Binh Phuoc, Binh Thuan, Ca Mau, Cao Bang, Dac Lak, Dac Nong, Dien Bien, Dong Nai, Dong Thap, Gia Lai, Ha Giang, Ha Nam, Ha Tay, Ha Tinh, Hai Duong, Hau Giang, Hoa Binh, Hung Yen, Khanh Hoa, Kien Giang, Kon Tum, Lai Chau, Lam Dong, Lang Son, Lao Cai, Long An, Nam Dinh, Nghe An, Ninh Binh, Ninh Thuan, Phu Tho, Phu Yen, Quang Binh, Quang Nam, Quang Ngai, Quang Ninh, Quang Tri, Soc Trang, Son La, Tay Ninh, Thai Binh, Thai Nguyen, Thanh Hoa, Thua Thien-Hue, Tien Giang, Tra Vinh, Tuyen Quang, Vinh Long, Vinh Phuc, Yen Bai
municipalities: Can Tho, Da Nang, Hai Phong, Ha Noi, Ho Chi Minh

2 September 1945 (from France)

Independence Day, 2 September (1945)

15 April 1992

based on communist legal theory and French civil law system

18 years of age; universal

chief of state: President Nguyen Minh TRIET (since 27 June 2006); Vice President Truong My HOA (since 25 July 2002)
head of government: Prime Minister Nguyen Tan DUNG (since 27 June 2006); Deputy Prime Minister Nguyen Sinh HUNG (since 28 June 2006), Deputy Prime Minister Pham Gia KHIEM (since 28 June 2006), and Deputy Prime Minister Truong Vinh TRONG (since 28 June 2006)
cabinet: Cabinet appointed by president based on proposal of prime minister and confirmed by National Assembly
elections: president elected by the National Assembly from among its members for five-year term; election last held 27 June 2006; prime minister appointed by the president from among the members of the National Assembly; deputy prime ministers appointed by the prime minister; appointment of prime minister and deputy prime ministers confirmed by National Assembly
election results: Nguyen Minh TRIET elected president; percent of National Assembly vote - 94%; Nguyen Tan DUNG elected prime minister; percent of National Assembly vote - 92%

unicameral National Assembly or Quoc-Hoi (498 seats; members elected by popular vote to serve five-year terms)
elections: last held 19 May 2002 (next to be held 2007)
election results: percent of vote by party - CPV 90%, other 10% (the 10% are not CPV members but are approved by the CPV to stand for election); seats by party - CPV 447, CPV-approved 51

Supreme People's Court (chief justice is elected for a five-year term by the National Assembly on the recommendation of the president)

only party - Communist Party of Vietnam or CPV [Nong Duc MANH]

MILITARY

People's Armed Forces: People's Army of Vietnam (PAVN) (includes People's Navy Command (with naval infantry, coast guard), Air and Air Defense Force (Kon Quan Nhan Dan), Border Defense Command), People's Public Security Forces, Militia Force, Self-Defense Forces (2005)

18 years of age (male) for compulsory military service; females may volunteer for active duty military service; conscript service obligation - 2 years (3-4 years in the navy); 18-45 years of age (male) or 18-40 years of age (female) for Militia Force or Self Defense Forces (2006)

males age 18-49: 21,341,813
females age 18-49: 21,430,808 (2005 est.)

males age 18-49: 16,032,358
females age 18-49: 17,921,241 (2005 est.)

males age 18-49: 915,572
females age 18-49: 864,161 (2005 est.)

$650 million (FY98)

2.5% (FY98)

ECONOMICS

Vietnam is a densely-populated, developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. Substantial progress was achieved from 1986 to 1997 in moving forward from an extremely low level of development and significantly reducing poverty. Growth averaged around 9% per year from 1993 to 1997. The 1997 Asian financial crisis highlighted the problems in the Vietnamese economy and temporarily allowed opponents of reform to slow progress toward a market-oriented economy. GDP growth averaged 6.8% per year from 1997 to 2004 even against the background of the Asian financial crisis and a global recession, and growth hit 8% in 2005. Since 2001, however, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime. Vietnam's exports to the US doubled in 2002 and again in 2003. Vietnam hopes to become a member of the WTO in 2006. Among other benefits, accession would allow Vietnam to take advantage of the phase out of the Agreement on Textiles and Clothing, which eliminated quotas on textiles and clothing for WTO partners on 1 January 2005. Agriculture's share of economic output has continued to shrink, from about 25% in 2000 to 21% in 2005. Deep poverty, defined as a percent of the population living under $1 per day, has declined significantly and is now smaller than that of China, India, and the Philippines. Vietnam is working to promote job creation to keep up with the country's high population growth rate. However, high levels of inflation have prompted Vietnamese authorities to tighten monetary and fiscal policies.

$2,800 (2005 est.)

crude oil, marine products, rice, coffee, rubber, tea, garments, shoes

paddy rice, coffee, rubber, cotton, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafood

food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, paper

Revenues: $8.689 billion
Expenditures: $9.718 billion, including capital expenditures of $1.8 billion (2004 est.)

Debt - external: $14.69 billion (2004 est.)

48.2% of GDP (2005 est.)

Economic aid - recipient: $2.8 billion in credits and grants pledged by international donors for 2000 (2004)

Internet hosts: 340 (2003)

Internet users: 3.5 million (2003)

CONFLICTS

Southeast Asian states have enhanced border surveillance to check the spread of avian flu; Cambodia and Laos protest Vietnamese squatters and armed encroachments along border; after years of Cambodia claiming Vietnam had moved or destroyed boundary markers, in 2005, after much domestic debate, Cambodia ratified an agreement with Vietnam that settled all but a small portion of the land boundary; establishment of a maritime boundary with Cambodia is hampered by unresolved dispute over offshore islands; in 2004, Laotian-Vietnamese boundary commission agrees to erect missing markers in two adjoining provinces; demarcation of the China-Vietnam boundary proceeds slowly and although the maritime boundary delimitation and fisheries agreements were ratified in June 2004, implementation has been delayed; China occupies Paracel Islands also claimed by Vietnam and Taiwan; involved in complex dispute with China, Malaysia, Philippines, Taiwan, and possibly Brunei over the Spratly Islands; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Vietnam continues to expand construction of facilities in the Spratly Islands; in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord to conduct marine seismic activities in the Spratly Islands.

OTHER CONSIDERATIONS

minor producer of opium poppy; probable minor transit point for Southeast Asian heroin; government continues to face domestic opium/heroin/methamphetamine addiction problems despite longstanding crackdown

 Image and data: US CIA. December 19, 2006