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| − | COUNTRY PROFILE: '''VIETNAM''' Library of Congress December 2005
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| − | == COUNTRY ==
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| | '''Formal Name:''' Socialist Republic of Vietnam (Cong Hoa Xa Hoi Chu Nghia Viet Nam). | | '''Formal Name:''' Socialist Republic of Vietnam (Cong Hoa Xa Hoi Chu Nghia Viet Nam). |
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| | '''Flag:''' Red, with a large yellow five-pointed star in the center. | | '''Flag:''' Red, with a large yellow five-pointed star in the center. |
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| − | == HISTORICAL BACKGROUND == | + | == Country Profile: Vietnam == |
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| − | '''Origins:''' The Vietnamese trace the origins of their culture and nation to the fertile plains of the Red River Delta in northern Vietnam. After centuries of developing a civilization and economy
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| − | based on the cultivation of irrigated rice, in the tenth century the Vietnamese began expanding
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| − | southward in search of new rice lands. Until the mid-nineteenth century, the Vietnamese
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| − | gradually moved down the narrow coastal plain of the Indochina Peninsula, ultimately extending
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| − | their reach into the broad Mekong River Delta. Vietnamese history is the story of the struggle to
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| − | develop a sense of nationhood throughout this narrow, 1,500-kilometer stretch of land and to
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| − | maintain it against internal and external pressures.
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| − | China was the chief source of Vietnam's foreign ideas and the earliest threat to its national
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| − | sovereignty. As a result of a millennium of Chinese control beginning in about 111 BC, the
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| − | Vietnamese assimilated Chinese influence in the areas of administration, law, education,
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| − | literature, language, and culture. Even during the following nine centuries of Vietnamese
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| − | independence, lasting from the late tenth century until the second half of the nineteenth century,
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| − | the Chinese exerted considerable cultural, if not political, influence, particularly on the elite.
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| − |
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| − | '''Colonial Period, Independence, and War:''' After 900 years of independence and following a
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| − | period of disunity and rebellion, the French colonial era began during the 1858–83 period, when
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| − | the French seized control of the nation, dividing it into three parts: the north (Tonkin), the center
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| − | (Annam), and the south (Cochinchina). In 1861 France occupied Saigon, and by 1883 it had
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| − | taken control of all of Vietnam as well as Laos and Cambodia. French colonial rule was, for the
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| − | most part, politically repressive and economically exploitative. The Japanese occupied Vietnam
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| − | during World War II but allowed the French to remain and exert some influence. At the war’s
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| − | end in 1945, Ho Chi Minh, leader of the communist Viet Minh organization, declared Vietnam’s
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| − | independence in a speech that invoked the U.S. Declaration of Independence and the French
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| − | Revolution’s Declaration of the Rights of Man and of the Citizen. However, the French quickly
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| − | reasserted the control they had ceded to the Japanese, and the First Indochina War (1946–54)
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| − | was underway. French control ended on May 7, 1954, when Vietnamese forces defeated the
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| − | French at Dien Bien Phu. The 1954 Geneva Conference left Vietnam a divided nation, with Ho
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| − | Chi Minh's communist government ruling the North from Hanoi and Ngo Dinh Diem's regime,
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| − | supported by the United States, ruling the South from Saigon (later Ho Chi Minh City).
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| − | As a result of the Second Indochina War (1954–75), Viet Cong—communist forces in South
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| − | Vietnam—and regular People’s Army of Vietnam (PAVN) forces from the North unified
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| − | Vietnam under communist rule. In this conflict, the insurgents—with logistical support from
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| − | China and the Soviet Union—ultimately defeated the Army of the Republic of Vietnam, which
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| − | sought to maintain South Vietnamese independence with the support of the U.S. military, whose
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| − | troop strength peaked at 540,000 during the communist-led Tet Offensive in 1968. The North did
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| − | not abide by the terms of the 1973 Paris Agreement, which officially settled the war by calling
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| − | for free elections in the South and peaceful reunification. Two years after the withdrawal of the
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| − | last U.S. forces in 1973, Saigon, the capital of South Vietnam, fell to the communists, and on
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| − | April 30, 1975, the South Vietnamese army surrendered. In 1976 the government of united
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| − | Vietnam renamed Saigon as Ho Chi Minh City, in honor of the wartime communist leader who
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| − | died in September 1969. The Vietnamese estimate that they lost nearly 3 million lives and
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| − | suffered more than 4 million injuries during the U.S. involvement in the war.
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| − | '''Unified Vietnam:''' In the post-1975 period, it was immediately apparent that the popularity and
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| − | effectiveness of Vietnamese Communist Party (VCP) policies did not necessarily extend to the
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| − | party’s peacetime nation-building plans. Having unified North and South politically, the VCP
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| − | still had to integrate them socially and economically. In this task, VCP policy makers were
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| − | confronted with the South’s resistance to communist transformation, as well as traditional
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| − | animosities arising from cultural and historical differences between North and South. More than
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| − | a million Southerners, including about 560,000 “boat people,” fled the country soon after the
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| − | communist takeover, fearing persecution and seizure of their land and businesses. About a
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| − | million Vietnamese were relocated to previously uncultivated land called “new economic zones”
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| − | for reeducation.
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| − | The harsh postwar crackdown on remnants of capitalism in the South led to the collapse of the
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| − | economy during the 1980s. With the economy in shambles, Vietnam’s government altered its
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| − | course and adopted consensus policies that bridged the divergent views of pragmatists and
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| − | communist traditionalists. In 1986 Nguyen Van Linh, who was elevated to VCP general
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| − | secretary the following year, launched a campaign for political and economic renewal (Doi Moi).
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| − | His policies were characterized by political and economic experimentation that was similar to
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| − | simultaneous reform agendas undertaken in China and the Soviet Union. Reflecting the spirit of
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| − | political compromise, Vietnam phased out its reeducation effort. The government also stopped
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| − | promoting agricultural and industrial cooperatives. Farmers were permitted to till private plots
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| − | alongside state-owned land, and in 1990 the government passed a law encouraging the
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| − | establishment of private businesses.
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| − | Compounding economic difficulties were new military challenges. In the late 1970s, two
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| − | countries—Cambodia and China—posed threats to Vietnam. Clashes between Vietnamese and
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| − | Cambodian communists on their common border began almost immediately after Vietnam’s
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| − | reunification in 1975. To neutralize the threat, Vietnam invaded Cambodia in December 1978
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| − | and overran Phnom Penh, the Cambodian capital, driving out the incumbent Khmer Rouge
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| − | communist regime and initiating a prolonged military occupation of the country.
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| − | In February and March 1979, China retaliated against Vietnam's incursion into Cambodia by
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| − | launching a limited invasion of Vietnam, but the Chinese foray was quickly rebuffed. Relations
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| − | between the two countries had been deteriorating for some time. Territorial disagreements along
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| − | the border and in the South China Sea that had remained dormant during the Second Indochina
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| − | War were revived at the war's end, and a postwar campaign engineered by Hanoi to limit the role
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| − | of Vietnam's ethnic Chinese community in domestic commerce elicited a strong protest from
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| − | Beijing. China also was displeased with Vietnam because of its improving relationship with the
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| − | Soviet Union.
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| − | During its incursion into Cambodia in 1978–89, Vietnam’s international isolation extended to
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| − | relations with the United States. The United States, in addition to citing Vietnam's minimal
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| − | cooperation in accounting for Americans who were missing in action (MIAs) as an obstacle to
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| − | normal relations, barred normal ties as long as Vietnamese troops occupied Cambodia.
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| − | Washington also continued to enforce the trade embargo imposed on Hanoi at the conclusion of
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| − | the war in 1975. Soon after the Paris Agreement on Cambodia resolved the conflict in October
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| − | 1991, however, Vietnam established or reestablished diplomatic and economic relations with
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| − | most of Western Europe, China, and other Asian countries. Vietnam normalized relations with
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| − | China in 1991 and with Japan in 1993. In February 1994, the United States lifted its economic
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| − | embargo against Vietnam, and in June 1995, the United States and Vietnam normalized relations.
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| − | In June 2005, a high-level Vietnamese delegation, led by Prime Minister Phan Van Khai, visited
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| − | the United States and met with their U.S. counterparts, including President George W. Bush.
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| − | This was the first such visit in 30 years. Relations with China took another step forward after the
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| − | two countries settled their long-standing border dispute in 1999. China is now a major trading
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| − | partner, and Vietnam models its economic policies after China’s.
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| − | As of late 2005, a three-person collective leadership was responsible for governing Vietnam.
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| − | This triumvirate consisted of the VCP general secretary (Nong Duc Manh, April 2001– ), the
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| − | prime minister (Phan Van Khai, September 1997– ), and the president (Tran Duc Luong,
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| − | September 1997– ). General Secretary Manh headed up not only the VCP but also the 15-
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| − | member Politburo. President Luong was chief of state, and Prime Minister Khai was head of
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| − | government. The leadership is promoting a “socialist-oriented market economy” and friendly
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| − | relations with China, Japan, the European Union, Russia, and the United States. Although the
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| − | leadership is presiding over a period of rapid economic growth, official corruption and a
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| − | widening gap between urban wealth and rural poverty remain stubborn problems that are eroding
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| − | the VCP’s authority. A major goal is gaining full membership in the World Trade Organization
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| − | (WTO). Vietnam now hopes to join the WTO by mid-2006, although previously it had hoped to
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| − | achieve this goal by the end of 2005. Vietnam still needs to conclude bilateral agreements with
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| − | the United States, Australia, New Zealand, Mexico, and the Dominican Republic in order to
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| − | qualify for membership.
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| − | == GEOGRAPHY ==
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| − | '''Location:''' Vietnam is located in Southeast Asia, bordered by the
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| − | Gulf of Tonkin and the South China Sea to the east, China to the
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| − | north, Laos and Cambodia to the west, and the Gulf of Thailand
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| − | to the south.
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| − | '''Size:''' Vietnam is long and thin, with an area of 330,363 square
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| − | kilometers.
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| − | | |
| − | '''Land Boundaries:''' Vietnam shares land boundaries with Cambodia
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| − | (1,228 kilometers), China (1,281 kilometers), and Laos (2,130 kilometers).
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| − | '''Disputed Territory:''' On December 30, 1999, China and Vietnam
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| − | signed a treaty that settled disputes over the two nations’ common
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| − | border. However, the Paracel and Spratly Islands in the South China
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| − | Sea are still regarded as disputed territory. Malaysia, Brunei, the
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| − | Philippines, and Taiwan also claim sovereignty over the Spratly
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| − | Islands, which are believed to be rich in oil and natural gas reserves.
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| − | In May 2004, the government authorized 50 tourists and 40 officials to visit the Spratly Islands
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| − | by boat. The other nations staking a claim to the islands protested what they interpreted as an
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| − | assertion of sovereignty by Vietnam. In October 2004, Vietnam invited bids for oil exploration in
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| − | the Spratlys, triggering a complaint from China’s Ministry of Foreign Affairs. In November
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| − | 2004, China retaliated by moving an oil-drilling platform into position to explore for oil in the
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| − | Paracels.
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| − | '''Length of Coastline:''' Vietnam’s coastline along the Gulf of Tonkin, the South China Sea, and
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| − | the Gulf of Thailand measures 3,444 kilometers.
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| − | '''Maritime Claims:''' In June 2004, Vietnam’s National Assembly ratified an agreement originally
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| − | reached with China in December 2000 that established an internationally valid maritime border
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| − | in the Gulf of Tonkin. The ratification delay was attributable to concerns that the government
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| − | had made too many concessions during negotiations. In addition, in April 2004 China and
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| − | Vietnam agreed to a common fishing zone in the Gulf of Tonkin. Vietnam claims an exclusive
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| − | economic zone (EEZ) of 200 nautical miles, the approximate beginning of the continental shelf.
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| − | | |
| − | '''Topography:''' Vietnam is a country of tropical lowlands, hills, and densely forested highlands,
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| − | with level land covering no more than 20 percent of the area. The country is divided into the
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| − | highlands and the Red River Delta in the north, and the Giai Truong Son (Central mountains, or
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| − | the Chaîne Annamitique, sometimes referred to simply as the Chaîne), the coastal lowlands, and
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| − | the Mekong River Delta in the south. The highest point in Vietnam is Fan Si Pan, at 3,143 meters
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| − | above sea level, in the northwest.
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| − | | |
| − | '''Principal Rivers:''' A relatively dense network of rivers traverses Vietnam. The principal rivers
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| − | are as follows: in the north, the Red and Thai Binh; in the center, the Ca, Ma, Han, Thach Han,
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| − | and Thu Bon; and in the south, the Mekong and Dong Nai.
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| − | '''Climate:''' Vietnam’s climate is tropical and monsoonal; humidity averages 84 percent throughout
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| − | the year. Annual rainfall ranges from 1,200 to 3,000 millimeters, and annual temperatures vary
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| − | between 5°C and 37°C.
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| − | '''Natural Resources:''' Vietnam’s main natural resources consist of coal, copper, crude oil, gold,
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| − | iron, manganese, silver, and zinc.
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| − | | |
| − | '''Land Use:''' In 2003 Vietnam’s land use was distributed as follows: 21 percent, arable; 28
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| − | percent, forest and woodland; and 51 percent, other.
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| − | '''Environmental Factors:''' The National Environmental Agency, a branch of the Ministry of
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| − | Science, Technology, and Environment, is responsible for environmental protection. At the
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| − | provincial level, the Departments of Science, Technology, and the Environment bear
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| − | responsibility. Non-governmental organizations, particularly the Institute of Ecological
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| − | Economics, also play a role. Urbanization, industrialization, and intensive farming are having a
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| − | negative impact on Vietnam’s environment. These factors have led to air pollution, water
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| − | pollution, and noise pollution, particularly in urban and industrial centers like Ho Chi Minh City
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| − | and Hanoi. The most serious problem is waste treatment. Land use pressures have led to
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| − | significant environmental problems, including severe deforestation, soil erosion, sedimentation
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| − | of rivers, flooding in the deltas, declining fish yields, and pollution of the coastal and marine
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| − | environment. The use of Agent Orange by the U.S. military in the Second Indochina War (1954–
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| − | 75) has had a lingering effect on Vietnam in the form of persistent environmental contamination
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| − | that has increased the incidence of various diseases and birth defects.
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| − | '''Time Zone:''' Seven hours ahead of Greenwich Mean Time.
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| − | == SOCIETY ==
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| − | '''Population:''' In 2004 Vietnam’s population was 82.2 million, and it was growing at a rate of
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| − | about 1.2 percent per year. The average population density was 246 people per square kilometer,
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| − | one of the highest levels in the world. The highest concentration of people was in the Red River
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| − | Delta, in the northeast where Hanoi is located, and the lowest concentration was in the northwest.
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| − | The population, which traditionally has been primarily rural, has become increasingly urbanized
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| − | since 1986, when the Doi Moi economic renewal program began to boost income and
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| − | employment opportunities in the cities. In 2004 about 26 percent of Vietnam’s population was
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| − | urban and 75 percent rural, down from 85 percent in the early 1980s. Vietnam’s net migration
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| − | rate was estimated at –0.45 migrant(s) per 1,000 population in 2004. Consistent with the trend
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| − | toward urbanization, urban areas, such as Ho Chi Minh City, Hanoi, Da Nang, and the Central
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| − | Highlands, have attracted the most migrants. In addition, a steady stream of migrants continues
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| − | to move from the North to the South. As of 2002, the two largest groups of refugees were
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| − | Vietnamese and ethnic Chinese returning to Vietnam from Cambodia and the Montagnards from
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| − | Vietnam’s Central Highlands seeking asylum in Cambodia.
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| − | '''Demography:''' In 2004 Vietnam’s age distribution was estimated as follows: 0 to 14 years of age, 29.4 percent; 15 to 64, 65 percent; and 65 and older, 5.6 percent. This age distribution signals
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| − | slower population growth than in the past. According to 2005 estimates, Vietnam’s birthrate was
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| − | 17.07 births per 1,000 people, and the fertility rate was 1.94 children born per woman. The infant
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| − | mortality rate was 25.95 per 1,000 live births, and the death rate was 6.2 per 1,000. Also
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| − | according to 2005 estimates, life expectancy was 70.61 years for the total population, consisting
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| − | of 67.82 years for men and 73.6 years for women.
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| − | '''Ethnic Groups:''' Vietnamese are the predominant ethnic group, constituting 85 to 90 percent of
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| − | the population. Chinese account for 3 percent of the population. Other ethnic groups are the
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| − | Hmong, Thai, Khmer, Cham, and Montagnards, an indigenous group living in the Central
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| − | Highlands.
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| − | | |
| − | | |
| − | '''Languages:''' Vietnamese is the official language of Vietnam. The Vietnamese have adopted a
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| − | Romanized script introduced by the French during the colonial period. English is increasingly
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| − | accepted as a second language. Some French language influence persists. Other languages used
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| − | are Chinese, Khmer, and mountain area dialects.
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| − | | |
| − | | |
| − | '''Religion:''' With 7.6 million followers, Buddhism is the most popular religion. The second most
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| − | popular religion is Roman Catholicism, with 6 million adherents. Other faiths, with the number
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| − | of followers indicated, are Cao Dai (2 million), Hoa Hao (1 million), Protestantism (500,000),
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| − | and Islam (50,000).
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| − | | |
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| − | '''Education and Literacy:''' In 2003 Vietnam’s literacy rate was 94 percent, including 95.8 percent for men and 92.3 percent for women. However, educational attainment is less impressive.
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| − | Although five years of primary school education are considered compulsory and 92 percent of
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| − | eligible children were enrolled in primary school in 2000, only two-thirds completed the fifth
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| − | grade. The cost of tuition, books, and uniforms and the need to supplement family income are the
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| − | two main reasons for dropping out. A huge disparity exists in primary school enrollment between
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| − | the cities and rural parts of Vietnam. In some rural areas, only 10 to 15 percent of the children
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| − | progress beyond third grade, whereas almost 96 percent of pupils in Ho Chi Minh City complete
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| − | fifth grade. In 2000 enrollment in secondary school was only 62.5 percent, much lower than in
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| − | primary school. One of the government’s goals is to expand access to secondary education.
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| − | | |
| − | | |
| − | '''Health:''' The overall quality of healthcare is regarded as good, as reflected by 2005 estimates of life expectancy (70.61 years) and infant mortality (25.95 per 1,000 live births). However,
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| − | malnutrition is still common in the provinces, and the life expectancy and infant mortality rates
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| − | are stagnating. In 2001 government spending on health care corresponded to just 0.9 percent of
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| − | gross domestic product (GDP). Government subsidies covered only about 20 percent of health
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| − | care expenses, with the remaining 80 percent coming out of individuals’ own pockets.
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| − | In 1954 the government in the North established a public health system that reached down to the
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| − | hamlet level. After reunification in 1976, this system was extended to the South. Beginning in
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| − | the late 1980s, the quality of health care began to decline as a result of budgetary constraints, a
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| − | shift of responsibility to the provinces, and the introduction of charges. Inadequate funding has
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| − | led to delays in planned upgrades to water supply and sewerage systems. As a result, almost half
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| − | the population has no access to clean water, a deficiency that promotes such infectious diseases
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| − | as malaria, dengue fever, typhoid, and cholera. Inadequate funding also has contributed to a
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| − | shortage of nurses, midwives, and hospital beds. In 2000 Vietnam had only 250,000 hospital
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| − | beds, or 14.8 beds per 10,000 people, a very low ratio among Asian nations, according to the
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| − | World Bank.
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| − | | |
| − | Vietnam has made progress in combating malaria, for which the mortality rate declined sharply,
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| − | to about 5 percent of the rate in the early 1990s, after the country introduced antimalarial drugs
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| − | and treatment. However, tuberculosis (TB) cases are on the rise, with 57 deaths per day reported
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| − | in May 2004. With an intensified vaccination program, better hygiene, and foreign assistance,
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| − | Vietnam hopes to reduce sharply the number of TB cases and annual new TB infections.
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| − | | |
| − | As of September 2005, Vietnam had diagnosed 101,291 human immunodeficiency virus (HIV)
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| − | cases, of which 16,528 developed acquired immune deficiency syndrome (AIDS) and 9,554 died.
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| − | But the actual number of HIV-positive individuals is estimated to be much higher. An average of
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| − | 40–50 new infections are reported every day in Vietnam. Vietnam hopes to contain the HIV
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| − | infection rate at the current official rate of 0.35 percent, which is about average worldwide, by
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| − | limiting the disease as much as possible to sex workers and intravenous drug users. However, if
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| − | the current trend continues, the number of infected persons could reach 1 million by 2010. One
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| − | of the impediments to containing HIV/AIDS is that the victims face discrimination and
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| − | stigmatization that are more severe than almost anywhere else in the world, according to a
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| − | United Nations official. In June 2004, the Bush Administration announced that Vietnam would
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| − | be one of 15 nations to receive funding as part of a US$15 billion global AIDS plan.
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| − | '''Welfare:''' Vietnam’s welfare efforts target victims of the Second Indochina War (1954–75), such
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| − | as individuals disabled in combat or by toxic chemicals and the families of fallen combatants.
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| − | About 5 million Vietnamese, corresponding to more than 6 percent of the population, are
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| − | disabled. The Ministry of Labor, War Invalids, and Social Affairs administers welfare. Vietnam
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| − | has legislated a social insurance system with provisions for old age, disability, and death;
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| − | sickness and maternity; and work injury. Coverage is reported to be mandatory for state
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| − | employees, non-state enterprises with more than 10 employees, and foreign-invested enterprises.
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| − | Special programs are said to exist for government civil servants and armed forces personnel.
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| − | | |
| − | == ECONOMY ==
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| − | | |
| − | '''Overview:''' Beginning in the 1980s, dire economic conditions forced the government to relax
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| − | restrictions on private enterprise and sharply cut back on labor camp prisoners, many of them
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| − | entrepreneurs. In 1986 Vietnam launched a political and economic renewal campaign (Doi Moi)
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| − | that introduced reforms intended to facilitate the transition from a centralized economy to a
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| − | “socialist-oriented market economy.” Doi Moi combined government planning with free-market
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| − | incentives. The program abolished agricultural collectives, removed price controls on
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| − | agricultural goods, and enabled farmers to sell their goods in the marketplace. It encouraged the
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| − | establishment of private businesses and foreign investment, including foreign-owned enterprises.
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| − | | |
| − | By the late 1990s, the success of the business and agricultural reforms ushered in under Doi Moi
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| − | was evident. More than 30,000 private businesses had been created, and the economy was
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| − | growing at an annual rate of more than 7 percent. From the early 1990s to 2005, poverty declined
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| − | from about 50 percent to 29 percent of the population. However, progress varied geographically,
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| − | with most prosperity concentrated in urban areas, particularly in and around Ho Chi Minh City.
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| − | In general, rural areas also made progress, as rural households living in poverty declined from 66
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| − | percent of the total in 1993 to 36 percent in 2002. By contrast, concentrations of poverty
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| − | remained in certain rural areas, particularly the northwest, north-central coast, and central
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| − | highlands.
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| − | | |
| − | In 2001 the Vietnamese Communist Party (VCP) approved a 10-year economic plan that
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| − | enhanced the role of the private sector while reaffirming the primacy of the state. In 2003 the
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| − | private sector accounted for more than one-quarter of all industrial output, and the private
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| − | sector’s contribution was expanding more rapidly than the public sector’s (18.7 percent versus
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| − | 12.4 percent growth from 2002 to 2003).
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| − | | |
| − | Despite these signs of progress, the World Economic Forum’s 2005 Global Competitiveness
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| − | Report, which reflects the subjective judgments of the business community, ranked Vietnam
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| − | eighty-first in growth competitiveness in the world (down from sixtieth place in 2003) and
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| − | eightieth in business competitiveness (down from fiftieth place in 2003), well behind its model
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| − | China, which ranked forty-ninth and fifty-seventh in these respective categories. Vietnam’s sharp
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| − | deterioration in the rankings from 2003 to 2005 was attributable in part to negative perceptions
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| − | of the effectiveness of government institutions. Official corruption is endemic despite efforts to
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| − | curb it. Vietnam also lags behind China in terms of property rights, the efficient regulation of
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| − | markets, and labor and financial market reforms. State-owned banks that are poorly managed and
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| − | suffer from non-performing loans still dominate the financial sector.
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| − | | |
| − | Although Vietnam’s economy, which continues to expand at an annual rate in excess of 7
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| − | percent, is one of the fastest growing in the world, the economy is growing from an extremely
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| − | low base, reflecting the crippling effect of the Second Indochina War (1954–75) and repressive
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| − | economic measures introduced in its aftermath. Whether rapid economic growth is sustainable is
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| − | open to debate. The government may not be able to follow through with plans to scale back trade
| |
| − | restrictions and reform state-owned enterprises. Reducing trade restrictions and improving
| |
| − | transparency are keys to gaining full membership in the World Trade Organization (WTO), as
| |
| − | hoped by mid-2006. The government plans to reform the state-owned sector by partially
| |
| − | privatizing thousands of state-owned enterprises, including all five state-owned commercial
| |
| − | banks.
| |
| − | | |
| − | | |
| − | '''Gross Domestic Product (GDP):''' In 2004 Vietnam’s GDP was US$45.2 billion. Per capita
| |
| − | gross national income was US$550. However, based on purchasing power parity (buying power
| |
| − | for a basket of goods without regard for market exchange rates), Vietnam’s per capita GDP was
| |
| − | approximately US$2,700. In 2004 the contributions to GDP by sector were as follows:
| |
| − | agriculture, 21.8 percent; industry, 40.1 percent; and services, 38.2 percent. Reflecting Vietnam’s
| |
| − | hybrid economy, industry ownership was mixed, as indicated by percentage of output, as
| |
| − | follows: state-owned, 40 percent and declining; privately owned, 25 percent, but employing four
| |
| − | times as many workers as the state-owned sector; and foreign-owned, 35 percent.
| |
| − | | |
| − | | |
| − | '''Government Budget:''' In November 2003, Vietnam’s National Assembly approved a total state
| |
| − | budget of about US$12 billion for 2004, corresponding to about 26.5 percent of estimated gross
| |
| − | domestic product (GDP). The government’s budget deficit, currently targeted not to exceed 5
| |
| − | percent, is rising but remains under control in the view of independent observers.
| |
| − | | |
| − | | |
| − | '''Inflation:''' In 2004 inflation was 9.5 percent, higher than the 3.4 percent rate measured in 2000
| |
| − | but down significantly from 160 percent in 1988. The long-term decline reflects the beneficial
| |
| − | effect of fiscal and monetary reforms aimed at stabilizing the economy.
| |
| − | | |
| − | | |
| − | Agriculture, Forestry, and Fishing: In 2004 agriculture and forestry accounted for 21.8 percent
| |
| − | of gross domestic product (GDP), and during 1994–2004 the sector grew at an annual rate of 4.1
| |
| − | percent. However, agricultural employment was much higher than agriculture’s share of GDP; in
| |
| − | 2005 some 60 percent of the employed labor force was engaged in agriculture, forestry, and
| |
| − | fishing. Agricultural products accounted for 30 percent of exports in 2005. The relaxation of the
| |
| − | state monopoly on rice exports transformed the country into the world’s second or third largest
| |
| − | rice exporter. Other cash crops are coffee, cotton, peanuts, rubber, sugarcane, and tea.
| |
| − | | |
| − | In 2003 Vietnam produced an estimated 30.7 million cubic meters of roundwood. Production of
| |
| − | sawnwood was a more modest 2,950 cubic meters. In 1992, in response to dwindling forests,
| |
| − | Vietnam imposed a ban on the export of logs and raw timber. In 1997 the ban was extended to all
| |
| − | timber products except wooden artifacts. During the 1990s, Vietnam began to reclaim land for
| |
| − | forests with a tree-planting program.
| |
| − | | |
| − | Vietnam’s fishing industry, which has abundant resources given the country’s long coastline and
| |
| − | extensive network of rivers and lakes, has experienced moderate growth overall. In 2003 the total
| |
| − | catch was about 2.6 million tons. However, seafood exports expanded fourfold from 1990 to
| |
| − | 2002 to more than US$2 billion, driven in part by shrimp farms in the South and “catfish,” which
| |
| − | are a different species from their American counterpart but are marketed in the United States
| |
| − | under the same name. By concentrating on the U.S. market for the sale of vast quantities of
| |
| − | shrimp and catfish, Vietnam triggered antidumping complaints by the United States, which
| |
| − | imposed tariffs in the case of catfish and is considering doing the same for shrimp. In 2005 the
| |
| − | seafood industry began to focus on domestic demand to compensate for declining exports.
| |
| − | | |
| − | | |
| − | '''Mining and Minerals:''' In 2003 mining and quarrying accounted for a 9.4 percent share of gross
| |
| − | domestic product (GDP); the sector employed 0.7 percent of the workforce. Petroleum and coal
| |
| − | are the main mineral exports. Also mined are antimony, bauxite, chromium, gold, iron, natural
| |
| − | phosphates, tin, and zinc.
| |
| − | | |
| − | | |
| − | '''Industry and Manufacturing:''' Although industry contributed 40.1 percent of gross domestic
| |
| − | product (GDP) in 2004, it employed only 12.9 percent of the workforce. In 2000, 22.4 percent of
| |
| − | industrial production was attributable to non-state activities. During 1994–2004, industrial GDP
| |
| − | grew at an average annual rate of 10.3 percent. Manufacturing contributed 20.3 percent of GDP
| |
| − | in 2004, while employing 10.2 percent of the workforce. During 1994–2004, manufacturing
| |
| − | GDP grew at an average annual rate of 11.2 percent. The top manufacturing sectors—food
| |
| − | processing, cigarettes and tobacco, textiles, chemicals, and electrical goods—experienced rapid
| |
| − | growth. Almost a third of manufacturing and retail activity is concentrated in Ho Chi Minh City.
| |
| − | | |
| − | | |
| − | '''Energy:''' Petroleum is the main source of commercial energy, followed by coal, which
| |
| − | contributes about 25 percent of the country’s energy (excluding biomass). Vietnam’s oil reserves
| |
| − | are in the range of 270–500 million tons. The World Bank cites the lower bound of the range. Oil
| |
| − | production rose rapidly to 403,300 barrels per day in 2004, but output is believed to have peaked
| |
| − | and is expected to decline gradually. Vietnam’s anthracite coal reserves are estimated at 3.7
| |
| − | billion tons. Coal production was almost 19 million tons in 2003, compared with 9.6 million tons
| |
| − | in 1999. Vietnam’s potential natural gas reserves are 1.3 trillion cubic meters. In 2002 Vietnam
| |
| − | brought ashore 2.26 billion cubic meters of natural gas. Hydroelectric power is another source of
| |
| − | energy. In 2004 Vietnam began to build a nuclear power plant with Russian assistance.
| |
| − | | |
| − | Crude oil is Vietnam’s leading export, totaling 17 million tons in 2002; in 2004 crude oil
| |
| − | represented 22 percent of all export earnings. Petroleum exports are in the form of crude
| |
| − | petroleum because Vietnam has a very limited refining capacity. Vietnam’s only operational
| |
| − | refinery, a facility at Cat Hai near Ho Chi Minh City, has a capacity of only 800 barrels per day.
| |
| − | Several consortia have abandoned commitments to finance a 130,000-barrel-per-day facility at
| |
| − | Dung Quat in central Vietnam. Refined petroleum accounted for 10.2 percent of total imports in
| |
| − | 2002.
| |
| − | | |
| − | | |
| − | '''Services:''' In 2004 services accounted for 38.2 percent of gross domestic product (GDP). During
| |
| − | 1994–2004, GDP attributable to the services sector grew at an average annual rate of 6.0 percent.
| |
| − | | |
| − | | |
| − | '''Banking and Finance:''' Vietnam’s first stock exchange, known as the Ho Chi Minh City
| |
| − | Securities Trading Center, was established in July 2000. By the spring of 2005, the number of
| |
| − | companies listed on the exchange had reached 28, representing a total market capitalization of
| |
| − | only US$270 million. In March 2005, Vietnam opened an over-the-counter exchange, known as
| |
| − | the Hanoi Securities Trading Center. The purpose of the second exchange is to expedite the
| |
| − | process of equitization (partial privatization) of state-owned enterprises. Although these
| |
| − | exchanges are still very small, officials have set the goal of expanding their combined market
| |
| − | capitalization to 10 percent of gross domestic product by 2010 and gradually phasing out
| |
| − | restrictions on foreign ownership of shares. In September 2005, Vietnam’s prime minister
| |
| − | announced that the limit on foreign share ownership would rise from 30 percent to 49 percent.
| |
| − | | |
| − | | |
| − | Vietnam’s banks suffer from low public confidence, regulatory and managerial weakness, high
| |
| − | levels of non-performing loans (NPL), non-compliance with the Basel capital standards, and the
| |
| − | absence of international auditing. Since 1992 Vietnam’s banking system has consisted of a
| |
| − | combination of state-owned, joint-stock, joint-venture, and foreign banks, but the state-owned
| |
| − | commercial banks predominate, and they suffer from high levels of NPL, most of them to state-
| |
| − | owned enterprises. Consequently, in September 2005 Vietnam decided to equitize all five state-
| |
| − | owned banks—a change from previous plans to equitize only two of them. In addition, Vietnam
| |
| − | plans to boost the transparency of its financial system by establishing a credit-rating agency and
| |
| − | performance standards for joint-stock banks. Large foreign banks are balancing their strong
| |
| − | interest in serving multinationals in Vietnam and frustration with continuing restrictions on their
| |
| − | activities. Although Vietnam is a cash-based society, 300 to 400 automated teller machines
| |
| − | (ATMs) have been installed, and about 350,000 debit cards are in circulation.
| |
| − | | |
| − | | |
| − | '''Tourism:''' In 2004 Vietnam received 2.9 million international arrivals, up from 2.4 million the
| |
| − | previous year. The annual increase represented a strong rebound from a slight decline in 2003
| |
| − | attributable to the severe acute respiratory syndrome (SARS) epidemic in Asia. From 1999 to
| |
| − | 2004, tourism rose by 63 percent. Most of the visitors in 2004—27 percent—came from China,
| |
| − | with 8–9 percent each coming from the United States, Japan, and South Korea. The Vietnam
| |
| − | National Administration of Tourism is following a long-term plan to diversify the tourism
| |
| − | industry, which brings needed foreign exchange into the country.
| |
| − | | |
| − | | |
| − | '''Labor:''' In 2004 the unemployment rate in urban areas was 5.6 percent, down from 5.8 percent in
| |
| − | 2003 and 6.0 percent in 2002.
| |
| − | | |
| − | | |
| − | '''Foreign Economic Relations:''' Vietnam is an observer to the World Trade Organization (WTO),
| |
| − | but it aspires to full membership as early as mid-2006. Joining the WTO is vitally important
| |
| − | because membership will free Vietnam from textile quotas enacted worldwide as part of the
| |
| − | Multifiber Arrangement (MFA) of 1974. The MFA placed restrictions on the import by
| |
| − | industrialized countries of textiles from developing countries. For China and other WTO
| |
| − | members, however, textile quotas under the MFA expired at the end of 2004, as agreed in the
| |
| − | Uruguay Round of trade negotiations in 1994. Partially as a result, Vietnam’s textile exports
| |
| − | stagnated in 2005.
| |
| − | | |
| − | Economic relations with the United States are improving but are not without challenges, even
| |
| − | beyond Vietnam’s aspirations to join the WTO. Although the United States and Vietnam reached
| |
| − | a landmark bilateral agreement in December 2001 that boosted Vietnam’s exports to the United
| |
| − | States, disagreements over textile and catfish exports are hindering full implementation of the
| |
| − | agreement. Further disrupting U.S.-Vietnamese economic relations are efforts in Congress to link
| |
| − | non-humanitarian aid to Vietnam’s human rights record. Barriers to trade and intellectual
| |
| − | property are also within the purview of bilateral discussions.
| |
| − | | |
| − | Given neighboring China’s rapid economic ascendancy, Vietnam’s economic relationship with
| |
| − | China is of utmost importance. Following the resolution of most territorial disputes, trade with
| |
| − | China is growing rapidly, and in 2004 Vietnam imported more products from China than from
| |
| − | any other nation. In November 2004, the Association of Southeast Asian Nations (ASEAN), of
| |
| − | which Vietnam is a member, and China announced plans to establish the world’s largest free-
| |
| − | trade area by 2010.
| |
| − | | |
| − | | |
| − | '''Imports:''' In 2004 Vietnam’s merchandise imports were valued at US$31.5 billion, and growing
| |
| − | rapidly. Vietnam’s principal imports were machinery (17.5 percent), refined petroleum (11.5
| |
| − | percent), steel (8.3 percent), material for the textile industry (7.2 percent), and cloth (6.0
| |
| − | percent). The main origins of Vietnam’s imports were China (13.9 percent), Taiwan (11.6
| |
| − | percent), Singapore (11.3 percent), Japan (11.1 percent), South Korea (10.4 percent), Thailand
| |
| − | (5.8 percent), and Malaysia (3.8 percent).
| |
| − | | |
| − | | |
| − | '''Exports:''' In 2004 Vietnam’s merchandise exports were valued at US$26.5 billion, and, much
| |
| − | like imports, were growing rapidly. Vietnam’s principal exports were crude oil (22.1 percent),
| |
| − | textiles and garments (17.1 percent), footwear (10.5 percent), fisheries products (9.4 percent),
| |
| − | and electronics (4.1 percent). The main destinations of Vietnam’s exports were the United States
| |
| − | (18.8 percent), Japan (13.2 percent), China (10.3 percent), Australia (6.9 percent), Singapore (5.2
| |
| − | percent), Germany (4.0 percent), and the United Kingdom (3.8 percent).
| |
| − | | |
| − | | |
| − | '''Trade Balance:''' In 2004 Vietnam ran a merchandise trade deficit of US$5 billion, or 16 percent
| |
| − | of imports.
| |
| − | | |
| − | | |
| − | '''Balance of Payments:''' The current account balance was negative US$1.4 billion in 2004.
| |
| − | Vietnam last registered a slightly positive current account balance in 2001.
| |
| − | | |
| − | | |
| − | '''External Debt:''' In 2004 external debt amounted to US$16.6 billion, or 37 percent of gross
| |
| − | domestic product (GDP).
| |
| − | | |
| − | | |
| − | '''Foreign Investment:''' From 1988 to December 2004, cumulative foreign direct investment (FDI)
| |
| − | commitments totaled US$46 billion. By December 2004, about 58 percent had been dispersed.
| |
| − | About half of FDI has been directed at the two major cities (and environs) of Ho Chi Minh City
| |
| − | and Hanoi. In 2003 new foreign direct investment commitments were US$1.5 billion. The largest
| |
| − | sector by far for licensed FDI is industry and construction. Other sectors attracting FDI are oil
| |
| − | and gas, fisheries, construction, agriculture and forestry, transportation/communications, and
| |
| − | hotels and tourism. During the period 2006–10, Vietnam hopes to receive US$18 billion of FDI
| |
| − | to support a targeted growth rate in excess of 7 percent. Despite rising investments, foreign
| |
| − | investors still regard Vietnam as a risky destination, as confirmed by a recent survey by the
| |
| − | Japan External Trade Organization of Japanese companies operating in Vietnam. Many of these
| |
| − | companies complained about high costs for utilities, office rentals, and skilled labor. Official
| |
| − | corruption and bureaucracy, the lack of transparent regulations, and the failure to enforce
| |
| − | investor rights are additional issues impairing investment, according to the U.S. State
| |
| − | Department. Vietnam tied with several nations for 102nd place in Transparency International’s
| |
| − | 2004 Corruption Perceptions Index.
| |
| − | | |
| − | | |
| − | '''Foreign Aid:''' The World Bank’s assistance program for Vietnam has three objectives: to support
| |
| − | Vietnam’s transition to a market economy, to enhance equitable and sustainable development,
| |
| − | and to promote good governance. From 1993 through 2004, Vietnam received pledges of US$29
| |
| − | billion of official development assistance (ODA), of which about US$14 billion, or 49 percent,
| |
| − | actually has been disbursed. In 2004 international donors pledged ODA of US$2.25 billion, of
| |
| − | which US$1.65 billion actually was disbursed. Three donors accounted for 80 percent of
| |
| − | disbursements in 2004: Japan, the World Bank, and the Asian Development Bank. During the
| |
| − | period 2006–10, Vietnam hopes to receive US$14 billion–US$15 billion of ODA.
| |
| − | | |
| − | | |
| − | '''Currency and Exchange Rate:''' As of December 2005, one U.S. dollar was equivalent to about
| |
| − | 15,913 Vietnamese dong (D). The relationship between the U.S. dollar and Vietnamese dong is
| |
| − | important because the dong, although not freely convertible, is loosely pegged to the dollar
| |
| − | through an arrangement known as a “crawling peg.” This mechanism allows the dollar-dong
| |
| − | exchange rate to adjust gradually to changing market conditions.
| |
| − | | |
| − | | |
| − | '''Fiscal Year:''' Calendar year.
| |
| − | | |
| − | == TRANSPORTATION AND TELECOMMUNICATIONS ==
| |
| − | | |
| − | | |
| − |
| |
| − | | |
| − | Transportation Overview: Vietnam’s transportation system is in need of modernization and
| |
| − | expansion. Ports are operating at only one-third of capacity. Roads are in generally poor
| |
| − | condition, and the underdeveloped railroad system carries less freight than the inland waterways.
| |
| − | Motorcycles are more popular than buses. In an effort to improve bus service, Hanoi plans to
| |
| − | invite private companies to bid for operating rights for six municipal bus routes.
| |
| − | | |
| − |
| |
| − | | |
| − | Roads: Vietnam’s roads extend over 210,000 kilometers, implying a network density twice as
| |
| − | high as Thailand’s and Malaysia’s. However, the condition of the roads is generally poor; only
| |
| − | 13.5 percent of the roads are considered to be in good condition. Only 29 percent of the roads are
| |
| − | tarred, and road access is cut off to more than 10 percent of villages for at least one month per
| |
| − | year because of monsoons. In 2005 the construction of the 1,690-kilometer Ho Chi Minh
| |
| − | Highway, which eventually will link Hanoi and Ho Chi Minh City, was still underway. The
| |
| − | project, which is expected to cost US$500 million, is the largest transportation project since the
| |
| − | end of the Second Indochina War. Despite government efforts to promote the use of buses,
| |
| − | motorcycles remain the preferred mode of local transport. There is one motorcycle for every
| |
| − | seven people. Poorer citizens rely on bicycles, while only the affluent can afford cars.
| |
| − | | |
| − |
| |
| − | | |
| − | Railroads: Vietnam has six single-track railroad routes with a total length of 3,260 kilometers.
| |
| − | The network’s density is only about one-third the average for low-income countries. The longest
| |
| − | railroad line measures 1,730 kilometers from Hanoi to Ho Chi Minh City and requires 32 hours
| |
| − | to traverse on the Reunification Express. Of the nation’s inventory of rolling stock, 25 percent is
| |
| − | not operational. Twenty-five percent of the nation’s operational rolling stock is more than 30
| |
| − | years old. Freight traffic picked up in 2000 and 2001 following five years of decline. Vietnam
| |
| − | needs more than US$400 million between 2004 and 2009 to modernize its railroads. The
| |
| − | government plans to build two subway lines in Ho Chi Minh City by 2007. Project-related costs
| |
| − | are estimated at US$800 million.
| |
| − | | |
| − |
| |
| − | | |
| − | Ports: The principal ports in Vietnam, listed from north to south, are Haiphong, Quang Ninh,
| |
| − | Danang, Qui Nhon, Ho Chi Minh City, and Can Tho. Altogether, Vietnam has seven
| |
| − | international ports and five additional ports that specialize in transporting oil and coal. The
| |
| − | | |
| − | �
| |
| − | freight volume is about 14 million tons annually, compared with only 4.5 million tons in 1993.
| |
| − | However, total traffic is only about one-third of capacity. Vietnamese ships carry only about 20
| |
| − | percent of the country’s international trade, although plans exist to expand the merchant fleet
| |
| − | substantially.
| |
| − | | |
| − |
| |
| − | | |
| − | Inland Waterways: Vietnam’s inland waterways, primarily the Mekong River and Red River
| |
| − | systems, carry more freight than the railroads, and the volume of freight is rising slowly.
| |
| − | According to the World Bank, transportation productivity via the inland waterways is 40 percent
| |
| − | below the system’s potential, assuming proper maintenance, navigation aids, and dredging.
| |
| − | | |
| − |
| |
| − | | |
| − | Civil Aviation and Airports: Vietnam operates 17 major civil airports, including three
| |
| − | international gateways: Noi Bai serving Hanoi, Danang serving Danang City, and Tan Son Nhat
| |
| − | serving Ho Chi Minh City. Tan Son Nhat is the largest, handling 75 percent of international
| |
| − | passenger traffic. Vietnam Airlines, the national airline, has a fleet of 30 aircraft that link
| |
| − | Vietnam with 19 foreign cities. In 2004 Vietnam Airlines had 5 million passengers, up 25
| |
| − | percent from the prior year, and management expects the number of passengers to reach 12
| |
| − | million by 2010. In November 2004, Vietnam Airlines announced that it would purchase 10
| |
| − | Airbus A310–200 aircraft and continue negotiations for four Boeing 7E7 “Dreamliner” aircraft.
| |
| − | Vietnam Airlines’ goal is to expand its fleet to 73 aircraft by 2010. Beginning in 2006, Vietnam
| |
| − | Airlines will cooperate with American Airlines in international flights under a codeshare
| |
| − | agreement. Vietnam Airlines’ code will apply to American Airlines flights from the United
| |
| − | States to Vietnam, Japan, and Europe. American Airlines’ code will apply to Vietnam Airlines
| |
| − | flights from Vietnam to Japan and Europe.
| |
| − | | |
| − |
| |
| − | | |
| − | Pipelines: In April 1995, a 125-kilometer natural gas pipeline connecting Bach Ho with a power
| |
| − | plant near Vung Tau went into operation. With the subsequent addition of compressors, the
| |
| − | volume pumped rose to more than 1 billion cubic meters per year. In 2005 a 399-kilometer
| |
| − | underwater pipeline, the world’s longest, began to carry natural gas onshore from the Nam Con
| |
| − | Son basin. The pipeline’s anticipated capacity is 2 billion cubic meters per year, while the basin
| |
| − | has an estimated 59 billion cubic meters of natural gas reserves.
| |
| − | | |
| − |
| |
| − | | |
| − | Telecommunications: The International Telecommunication Union rates Vietnam’s
| |
| − | telecommunications market the second fastest growing in the world after China. With rapid
| |
| − | telecommunications growth leading to 4.9 million landline telephones and 3.4 million mobile
| |
| − | telephones as of mid-2004, Vietnam’s telephone penetration rate is still only 10 percent. As of
| |
| − | mid-2004, Vietnam had 5.1 million Internet users, corresponding to 6 percent penetration. In
| |
| − | 2000 Vietnam had about 600,000 personal computers, or 7.35 for 1,000 people. In 2003 Vietnam
| |
| − | had 8.2 million radios, or 100.45 per 1,000 people. There were 65 AM radio stations, 7 FM
| |
| − | stations, and 29 shortwave stations. Also in 2003, Vietnam had 3.6 million televisions, or 43.73
| |
| − | per 1,000 people. Television broadcast stations numbered at least seven in 1998.
| |
| − | | |
| − |
| |
| − | | |
| − |
| |
| − | | |
| − | | |
| − | == GOVERNMENT AND POLITICS == | |
| − |
| |
| − | | |
| − |
| |
| − | | |
| − | Government Overview: The Vietnamese Communist Party (VCP) has a monopoly on power. A
| |
| − | three-person collective leadership consists of the VCP general secretary, the prime minister, and
| |
| − | | |
| − | �
| |
| − | the president. President Tran Duc Luong is the chief of state, while Prime Minister Phan Van
| |
| − | Khai is head of government. General Secretary Nong Duc Manh heads up not only the VCP but
| |
| − | also the 15-member Politburo. A decision by any member of the triumvirate is vetted by the
| |
| − | other two. As a result, policy announcements tend to be bland and equivocal.
| |
| − | | |
| − |
| |
| − | | |
| − | In July 2002, the National Assembly voted to keep Prime Minister Khai and President Luong in
| |
| − | office until 2007. Khai, who is the oldest member of the cabinet and is known for his pro-reform
| |
| − | policies, is believed likely to complete his 2002–7 term because of the absence of an heir
| |
| − | apparent. The mechanism for transfers of power suffers from a lack of transparency.
| |
| − | | |
| − |
| |
| − | | |
| − | Constitution: Vietnam has had a series of constitutions, introduced in 1946, 1959, 1980, and
| |
| − | 1992. As of late 2004, the Vietnamese constitution is regarded as the 1992 document, as
| |
| − | amended in 2001 to continue the reform of the state apparatus, to allow more leeway to the
| |
| − | private sector, and to promote progress in the areas of education, science, and technology. The
| |
| − | original 1992 constitution modestly downgraded the roles of the Vietnamese Communist Party
| |
| − | (VCP) and the government in favor of reform. Instead of being authorized to do whatever was
| |
| − | necessary to “build socialism,” the VCP was subordinated to the constitution and the law, while
| |
| − | the government was assigned specific management functions under the direction of a prime
| |
| − | minister, whose powers also were defined. In addition, the constitution called for a multisector
| |
| − | economy. Although the autonomy of state enterprises was recognized, a role also was assigned to
| |
| − | the private sector. Individuals were permitted to acquire lengthy land leases. Foreign investors
| |
| − | were granted ownership rights and protection against nationalization.
| |
| − | | |
| − |
| |
| − | | |
| − | In 2001 the constitution was amended to increase the role of the National Assembly by giving it
| |
| − | the authority to decide budget allocations and to stage votes of no confidence in office holders.
| |
| − | Amendments also boosted the role of the private sector by recognizing the right to operate of any
| |
| − | businesses not explicitly prohibited and lifting restrictions on their size. These revisions were
| |
| − | intended to encourage the development of a cottage industry of individual traders and private
| |
| − | enterprises. In the field of education, amendments established the goals of universal secondary
| |
| − | education, more vocational and technical training, and easier access to education by the poor and
| |
| − | handicapped.
| |
| − | | |
| − |
| |
| − | | |
| − | Branches of Government: The constitution recognizes the National Assembly as “the highest
| |
| − | organ of state power.” The National Assembly, a 498-member unicameral body elected to a five-
| |
| − | year term, meets twice a year. The assembly appoints the president (chief of state), the prime
| |
| − | minister (head of government), chief procurators of the Supreme People’s Court and the
| |
| − | Supreme People’s Office of Supervision and Control (the heads of the judiciary), and the 21-
| |
| − | member cabinet (the executive). Once a rubber stamp, the National Assembly has become more
| |
| − | assertive in holding ministers accountable and amending legislation. Ultimately, however, the
| |
| − | Vietnamese Communist Party (VCP) controls the executive and the electoral process. The VCP
| |
| − | exercises control through the 150-member Central Committee, which elects the 15-member
| |
| − | Politburo at national party congresses held every five years. Members of the party hold all senior
| |
| − | government positions.
| |
| − | | |
| − |
| |
| − | | |
| − | The Vietnamese government has ministers in the following areas: agriculture and rural
| |
| − | development; construction; culture and information; education and training; finance; foreign
| |
| − | | |
| − | �
| |
| − | affairs; industry; interior; justice; labor, war invalids, and social affairs; marine products;
| |
| − | national defense; planning and investment; public health; science, technology and environment;
| |
| − | trade; and transport and communications.
| |
| − | | |
| − |
| |
| − | | |
| − | Administrative Divisions: Administratively, Vietnam consists of 59 provinces and 5
| |
| − | municipalities. The provinces are 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, Hai Duong, Ha Nam, Ha
| |
| − | Tay, Ha Tinh, 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, and Yen Bai. The municipalities are Can Tho, Da Nang,
| |
| − | Haiphong, Hanoi, and Ho Chi Minh.
| |
| − | | |
| − |
| |
| − | | |
| − | Provincial and Local Government: Provinces and municipalities are subdivided into towns,
| |
| − | districts, and villages. The provinces and municipalities are centrally controlled by the national
| |
| − | government. The towns, districts, and villages are locally accountable to some degree through
| |
| − | elected people’s councils.
| |
| − | | |
| − |
| |
| − | | |
| − | Judicial and Legal System: At the apex of the judicial system is the Supreme People’s Court
| |
| − | (SPC), which is the highest court for appeal and review. The SPC reports to the National
| |
| − | Assembly, which controls the judiciary’s budget and confirms the president’s nominees to the
| |
| − | SPC and Supreme People’s Procuracy. The Supreme People’s Procuracy issues arrest warrants,
| |
| − | sometimes retroactively. Below the SPC are district and provincial people’s courts, military
| |
| − | tribunals, and administrative, economic, and labor courts. The people’s courts are the courts of
| |
| − | first instance. The Ministry of Defense (MOD) has military tribunals, which have the same rules
| |
| − | as civil courts. Military judges and assessors are selected by the MOD and SPC, but the SPC has
| |
| − | supervisory responsibility.
| |
| − | | |
| − |
| |
| − | | |
| − | Although the constitution provides for independent judges and lay assessors (who lack
| |
| − | administrative training), the U.S. Department of State maintains that Vietnam lacks an
| |
| − | independent judiciary, in part because the Vietnamese Communist Party (VCP) selects judges
| |
| − | and vets them for political reliability. Moreover, the party seeks to influence the outcome of
| |
| − | cases involving perceived threats to the state or the party’s dominant position. In an effort to
| |
| − | increase judicial independence, the government transferred local courts from the Ministry of
| |
| − | Justice to the SPC in September 2002. However, the Department of State saw no evidence that
| |
| − | the move actually achieved the stated goal. Vietnam’s judiciary also is hampered by a shortage
| |
| − | of lawyers and rudimentary trial procedures. The death penalty often is imposed in cases of
| |
| − | corruption and drug trafficking.
| |
| − | | |
| − |
| |
| − | | |
| − | Electoral System: Vietnam has universal suffrage at age 18. Elections for the National
| |
| − | Assembly are scheduled every five years. The last election was held on May 19, 2002. The next
| |
| − | election is scheduled in 2007. In addition, elections to the people’s councils (local assemblies)
| |
| − | were last held in April 2004. Although candidates are carefully vetted, about 25 percent of those
| |
| − | | |
| − | �
| |
| − | elected were not members of the Vietnamese Communist Party (VCP). By a law enacted in
| |
| − | 2003, each district has at least two more candidates than the number of elected positions.
| |
| − | | |
| − |
| |
| − | | |
| − | Politics/Political Parties: Vietnam is a one-party state. The Vietnamese Communist Party
| |
| − | (VCP) has a monopoly on power.
| |
| − | | |
| − |
| |
| − | | |
| − | Mass Media: Vietnam’s mass media are supervised by the Ministry of Culture and Information
| |
| − | and communicate officially approved information. The government has shut down non-
| |
| − | compliant newspapers. Only senior officials are permitted access to foreign television via
| |
| − | satellite. Given Vietnam’s close supervision of official media outlets, dissidents have sought to
| |
| − | disseminate their views via the Internet, leading the government to impose restrictions on
| |
| − | Internet use and access. The regime controls Internet access via Vietnam’s sole gateway,
| |
| − | Vietnam Data Communications. In 2002 the Ministry of Culture and Information began to block
| |
| − | access to Internet Web sites it considers “subversive,” such as the BBC’s Vietnamese language
| |
| − | Web site. Also in 2002, the government sent a warning by jailing activists for publishing critical
| |
| − | commentaries on the Internet. Altogether, Reporters Without Borders documented seven cases of
| |
| − | dissidents being imprisoned or detained for illicit Internet use. The government also has
| |
| − | tightened controls over cybercafés. In 2004 the government reprimanded 65 cybercafé owners
| |
| − | for violating restrictions on Internet access, including the viewing of pornography.
| |
| − | | |
| − |
| |
| − | | |
| − | Foreign Relations: During its incursion into Cambodia in 1978–89, Vietnam was isolated
| |
| − | internationally. However, soon after the conflict was resolved in the Paris Agreement on
| |
| − | Cambodia in October 1991, Vietnam established or reestablished diplomatic and economic
| |
| − | relations with most of Western Europe, China, and other East Asian countries. Vietnam joined
| |
| − | the Association of Southeast Asian Nations (ASEAN) in 1995 and the Asia-Pacific Economic
| |
| − | Cooperation forum (APEC) in 1998. Vietnam’s foreign policy is aimed at developing good
| |
| − | relations with a diversified mix of nations.
| |
| − | | |
| − |
| |
| − | | |
| − | In February 1994, the United States lifted its economic embargo against Vietnam, and in June
| |
| − | 1995 the United States and Vietnam normalized relations. However, these relations remain
| |
| − | somewhat volatile. Full implementation of a bilateral trade agreement, which came into effect in
| |
| − | December 2001, is being held up by a dispute over catfish exports. In July 2003, the
| |
| − | International Trade Commission decided in favor of the United States in the catfish dispute.
| |
| − | Vietnam’s government is also upset with a bill introduced in the U.S. Congress in July 2004 to
| |
| − | link non-humanitarian aid to Vietnam’s human rights record. In June 2005, a high-level
| |
| − | Vietnamese delegation, led by Prime Minister Phan Van Khai, visited the United States and met
| |
| − | with their U.S. counterparts, including President George W. Bush. This was the first such visit in
| |
| − | 30 years. The leaders engaged in far-reaching discussions, including lingering issues from the
| |
| − | Second Indochina War, but the United States did not endorse Vietnam’s bid to join the World
| |
| − | Trade Organization (WTO) during the visit.
| |
| − | | |
| − |
| |
| − | | |
| − | Ideological affinities are driving improved relations with China, and trade between the nations
| |
| − | soared to reach US$7.2 billion in 2004. But despite improved relations, Vietnam remains
| |
| − | suspicious of China’s intentions. In January 2000, China and Vietnam signed a treaty defining a
| |
| − | common land border. However, the countries both claim sovereignty over the Spratly and
| |
| − | Paracel Islands in the South China Sea, and this dispute is a potential source of renewed tension.
| |
| − | | |
| − | �
| |
| − | Vietnam enjoys a good political and economic relationship with Japan, and the two countries are
| |
| − | partnering to exploit the disputed offshore oil fields in the South China Sea. At a meeting in
| |
| − | Hanoi in July 2004, foreign ministers from the two nations pledged to strengthen the partnership.
| |
| − | Already a major trading partner and investor, Japan promised to boost direct investment in
| |
| − | Vietnam. Japan also offered support for Vietnam’s bid to join the WTO. In December 2004,
| |
| − | Japan announced a grant of US$19 million to fight poverty in Vietnam.
| |
| − | | |
| − |
| |
| − | | |
| − | Russia’s predecessor state, the Soviet Union, was a longstanding ally and a major investor.
| |
| − | Following the break-up of the Soviet Union, Russia reduced its investments in Vietnam. Trade
| |
| − | also suffered as a result of a dispute over the large debt that Vietnam owed the Soviet Union.
| |
| − | This debt has been restructured to Vietnam’s benefit so that Vietnam now must repay only 15
| |
| − | percent, with payments stretched over two decades. Part of the debt is repayable in commodities
| |
| − | such as rice and coffee.
| |
| − | | |
| − |
| |
| − | | |
| − | Membership in International Organizations: Vietnam is a member of the Asian Development
| |
| − | Bank, the Asia-Pacific Economic Cooperation forum, the International Monetary Fund, the
| |
| − | United Nations, and the World Health Organization. Reflecting Vietnam’s recognition of its
| |
| − | place in the global economy, in 1995 Vietnam joined the Association of Southeast Asian Nations
| |
| − | (ASEAN). Now an observer at the World Trade Organization (WTO), Vietnam hopes to become
| |
| − | a full member of the WTO in 2006.
| |
| − | | |
| − |
| |
| − | | |
| − | Other memberships include the Colombo Plan for Cooperative Economic and Social
| |
| − | Development in Asia and the Pacific, Food and Agriculture Organization of the United Nations,
| |
| − | International Atomic Energy Agency, International Bank for Reconstruction and Development
| |
| − | (World Bank), International Civil Aviation Organization, International Development
| |
| − | Association, International Fund for Agricultural Development, International Finance
| |
| − | Corporation, International Federation of Red Cross and Red Crescent Societies, International
| |
| − | Labour Organization, International Maritime Organization, Interpol, International Olympic
| |
| − | Committee, International Telecommunication Union, Nonaligned Movement, Organisation for
| |
| − | the Prohibition of Chemical Weapons, United Nations Conference on Trade and Development,
| |
| − | United Nations Educational, Scientific and Cultural Organization, United Nations Industrial
| |
| − | Development Organization, World Confederation of Labor, World Customs Organization, World
| |
| − | Federation of Trade Unions, and World Intellectual Property Organization.
| |
| − | | |
| − |
| |
| − | | |
| − | Major International Treaties: With the United States, Vietnam reached the following
| |
| − | agreements: Normalization of Relations (1995), Bilateral Trade (2001), and Counternarcotics,
| |
| − | Civil Aviation, and Textiles (2003). With China, Vietnam reached a Land Border Agreement
| |
| − | (1999), an Agreement on Borders in the Gulf of Tonkin (2000), and a Declaration on the
| |
| − | Conduct of Parties in the South China Sea (2002). With Russia, Vietnam agreed to a Strategic
| |
| − | Partnership (2001).
| |
| − | | |
| − |
| |
| − | | |
| − | Aside from these bilateral agreements, Vietnam is a signatory to numerous international
| |
| − | agreements on biological weapons, chemical weapons, civil aviation, counterterrorism,
| |
| − | diplomatic immunity, nuclear nonproliferation, and war crimes. Notable agreements on the
| |
| − | environment include the following: Convention on the Prohibition of Military or any other
| |
| − | Hostile Use of Environmental Modification Techniques (1978), Convention on Early
| |
| − | | |
| − | �
| |
| − | Notification of a Nuclear Accident (1986), Convention on Assistance in the Case of a Nuclear
| |
| − | Accident or Radiological Emergency (1987), Convention for Protection of the Ozone Layer
| |
| − | (1988), Montreal Protocol on Substances that Deplete the Ozone Layer (1989), and United
| |
| − | Nations Framework Convention on Climate Change (1994).
| |
| − | | |
| − |
| |
| − | | |
| − |
| |
| − | | |
| − | | |
| − | == NATIONAL SECURITY ==
| |
| − |
| |
| − | '''Armed Forces Overview:''' Since Vietnam fought against the Khmer Rouge regime in Cambodia
| |
| − | in 1978–89, it has demobilized about 500,000 troops and cut military spending. Still, Vietnam
| |
| − | has one of the region’s largest and most powerful militaries. Furthermore, the People’s Army of
| |
| − | Vietnam remains politically influential, and many senior officers have obtained leadership
| |
| − | positions in the Central Committee and Politburo of the Vietnamese Communist Party (VCP).
| |
| − | The military’s prestige stems from its formidable track record against such major world military
| |
| − | powers as France, the United States, and China and its deep roots in society.
| |
| − | | |
| − | | |
| − | '''Foreign Military Relations:''' Vietnam cooperates militarily with India and China. Vietnam
| |
| − | advises India on how to combat guerrilla warfare. India helps maintain Vietnam’s MiG fighter
| |
| − | planes and helps Vietnam manufacture small- and medium-sized weapons. In 2001 Vietnam
| |
| − | bolstered its military cooperation with China. Russia has reduced its military presence in
| |
| − | Vietnam since it abandoned control over the Camh Ranh Bay Naval Base in 2001 because it
| |
| − | could not afford the expense.
| |
| − | | |
| − | | |
| − | '''External Threat:''' Despite having fought a border war with China in 1979, Vietnam does not
| |
| − | face an identifiable military enemy. However, sovereignty over the Spratly and Paracel Islands in
| |
| − | the South China Sea remains in dispute with China and several other nations. In addition,
| |
| − | Cambodia and Laos have protested incursions by Vietnamese squatters.
| |
| − | | |
| − | | |
| − | '''Defense Budget:''' In 2003 Vietnam’s defense budget was estimated at US$2.3 billion.
| |
| − | | |
| − | | |
| − | '''Major Military Units:''' Vietnam’s active-duty military consists of a 412,000-member army, a
| |
| − | 42,000-member navy, a 30,000-member air and air defense force, and a 40,000-member
| |
| − | paramilitary border defense corps. The army, which is deployed in nine military regions
| |
| − | (including Hanoi), consists of headquarters, 58 infantry divisions, 3 mechanized infantry
| |
| − | divisions, 10 armored battalions, 15 independent infantry regiments, special forces and airborne
| |
| − | brigades, 10 field artillery brigades, 8 engineering divisions, 10 to 15 economic construction
| |
| − | divisions, and 20 independent engineering brigades. The navy, including naval infantry, is
| |
| − | deployed in four naval regions. The People’s Air Force consists of three air divisions, each with
| |
| − | three regiments.
| |
| − | | |
| − | | |
| − | '''Major Military Equipment:''' The army is equipped with 1,315 main battle tanks, 620 light
| |
| − | tanks, 100 reconnaissance vehicles, 300 armored infantry fighting vehicles, 1,380 armored
| |
| − | personnel carriers, 2,300 towed artillery, and more than 30 self-propelled artillery. The army also
| |
| − | has an unspecified number of combined gun/mortars, assault guns, multiple rocket launchers,
| |
| − | mortars, surface-to-surface missiles, antitank guided weapons, recoilless launchers, air defense
| |
| − | guns, and surface-to-air missiles. The navy has 2 Yugo-class submarines, 6 frigates, 1 corvette,
| |
| − | 12 missile craft, 10 torpedo craft, 19 inshore patrol combatants, 10 mine warfare ships, 6
| |
| − | amphibious ships, and at least 30 support craft. The People’s Air Force has 189 combat aircraft
| |
| − | (53 Su–22, 12 Su–27, and 124 MiG–21) and 26 Mi–24 armed helicopters.
| |
| − | | |
| − | | |
| − | '''Military Service:''' Military service is compulsory, usually for two years. In late 2001, Vietnam
| |
| − | reinstated the requirement that women register for military service. However, barring an
| |
| − | emergency mobilization, they are unlikely to be called up. Mandatory military service for
| |
| − | women had been abandoned in 1975 at the end of the nation’s civil war.
| |
| − | | |
| − | | |
| − | '''Paramilitary Forces:''' Vietnam has a 4-million to 5-million-member paramilitary reserve force,
| |
| − | consisting of the People’s Self-Defense Force and the rural People’s Militia.
| |
| − | | |
| − | | |
| − | '''Police:''' The Ministry of Public Security controls the police, a national security investigative agency, and other units that maintain internal security.
| |
| − | | |
| − | | |
| − | '''Internal Threat:''' The government seeks to prevent the expression of views critical of the
| |
| − | government and non-sanctioned religious worship. When some dissidents sought to evade
| |
| − | official media controls by using the Internet to disseminate their views, the government
| |
| − | responded by introducing Internet restrictions. Although dissident activity generates substantial
| |
| − | press commentary, it does not pose a threat to the regime’s stability.
| |
| − | | |
| − | | |
| − | The Montagnard ethnic minority represents a special case. This group is seeking a return of its
| |
| − | ancestral lands in the Central Highlands. The Montagnards, who traditionally have opposed the
| |
| − | communist government, receive support from overseas Vietnamese, particularly the United
| |
| − | States-based Montagnard Foundation. After a violent clash with demonstrators in April 2004, the
| |
| − | government boosted its security presence in the region.
| |
| − | | |
| − | | |
| − | '''Terrorism:''' Following al Qaeda’s attack on the United States on September 11, 2001, Vietnam
| |
| − | expressed sympathy for the victims and qualified support for the war on terrorism. Vietnam
| |
| − | urged that any steps taken against terrorists be consistent with international cooperation within
| |
| − | the bounds of the United Nations Charter, target the culprits, and avoid larger-scale warfare.
| |
| − | | |
| − | | |
| − | In April 2004, the State Bank of Vietnam (SBV) issued a draft decree to combat money
| |
| − | laundering as a source of terrorist financing. This move followed pressure from the United
| |
| − | States, which denied requests by the Vietcombank and the Vietnam Bank for Investment and
| |
| − | Development to set up representative offices on the grounds that they could be used to finance
| |
| − | international terrorism.
| |
| | | | |
| | + | * [[Directory:Vietnam/Vietnam Historical Background|Vietnam Historical Background]] |
| | | | |
| − | '''Human Rights:''' In its 2004 report on Human Rights Practices, the U.S. Department of State
| + | * [[Directory:Vietnam/Vietnam Geography|Vietnam Geography]] |
| − | characterized Vietnam’s human rights record as “poor” and cited the continuation of “serious
| |
| − | abuses.” According to the report, the government has imposed restrictions on freedom of speech,
| |
| − | freedom of the press, freedom of assembly, and freedom of association. Citizens are denied the
| |
| − | right to change their government. The government continues to hold political prisoners who have
| |
| − | expressed views at odds with government policy. Prison conditions are generally “harsh, but not
| |
| − | unduly so given the country's level of economic development,” according to the State
| |
| − | Department assessment. Vietnam has no independent judiciary, and there is no right to a fair and
| |
| − | speedy trial. Human rights organizations are not permitted to operate. Discrimination against
| |
| − | women and ethnic minorities, child labor, and prostitution are serious problems. The government
| |
| − | is attempting to address the child labor issue.
| |
| | | | |
| | + | * [[Directory:Vietnam/Vietnam Society|Vietnam Society]] |
| | | | |
| − | The government officially provides for freedom of religion and recognizes Buddhist, Roman
| + | * [[Directory:Vietnam/Vietnam Economy|Vietnam Economy]] |
| − | Catholic, Protestant, Hoa Hao, Cao Dai, and Muslim denominations. However, non-sanctioned
| |
| − | groups, including branches of even the recognized denominations, face harassment. Furthermore,
| |
| − | the government insists on supervising the clergies of the sanctioned groups (by approving
| |
| − | appointments, for example) in the interest of “national unity.”
| |
| | | | |
| | + | * [[Directory:Vietnam/Vietnam Transportation And Telecommunications|Vietnam Transportation And Telecommunications]] |
| | | | |
| − | In April 2004, 20,000 to 30,000 members of the Montagnard ethnic minority gathered to protest
| + | * [[Directory:Vietnam/Vietnam Government And Politics|Vietnam Government And Politics]] |
| − | for the return of their ancestral lands in the Central Highlands and an end to religious repression.
| |
| − | Human Rights Watch alleges that hundreds of demonstrators were wounded and at least 10 killed
| |
| − | in a clash with Vietnamese officials and civilians. The Vietnamese government is concerned that
| |
| − | the Montagnards are seeking an independent state.
| |
| | | | |
| | + | * [[Directory:Vietnam/Vietnam National Security|Vietnam National Security]] |
| | | | |
| | + | * [[Directory:Vietnam/Vietnam Map|Vietnam Map]] |
| | + | <div style="overflow:auto;height:1px;"> |
| | + | [[Page Of::Directory:Vietnam]] |
| | + | </div> |
| | + | ---- |
| | + | <adsense> |
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| | + | google_ad_type = "text_image"; |
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| | + | </adsense> |
| | + | ---- |
| | + | Library Of Congress December 2005<br> |
| | {{QuickAdd | | {{QuickAdd |
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