Vietnam: Country Factfile

Overview

Area

329,565 km2

Population density

260.8 people/km2

Currency

New dông (= 10 hào = 100 xu)

Location

Vietnam is located on the South China Sea coast of the Indo-Chinese peninsula. The country follows the coast for more than 2,000km
from the Chinese border in the north to the far south where it joins Cambodia on the Gulf of Thailand. There is also a western border with
Laos. The climate is tropical and extremely humid. The capital is Hanoi.

Head of state

President Nguyen Minh Triet (2006)

Head of government

Nguyen Tan Dung (2006)

Ruling party

Communist Party of Vietnam (CPV)

Political structure

The influence of the communist party remains dominant despite attempts at economic and political reform. The country has a semi-
executive president who has until recently been elected from single-candidate lists, and a 493-member National Assembly which is
formally vested with all legislative power. In practice, the CPV controls the armed forces and the judiciary.

Last elections

Elections to the National Assembly were held in May 2007. The Vietnamese Fatherland Front (VFF), a front of the Communist Party of
Vietnam, dominated the poll, taking 492 seats. One winner was self-nominated and does not belong to the VFF. Triet was re-elected as
president in July 2007.

Political risk

Neither the outbreak of SARS nor the avian flu epidemic has slowed economic growth. The dangers of a reoccurrence are great,
however, and the economic fallout could be sizeable next time. Ethnic minorities account for nearly 40% percent of the poor population
although they are only 15% of the total population. Though the private sector is growing rapidly, corruption and a pervasive bureaucracy
weigh heavily on these new firms. They can be subjected to as many as 15 different bureaucratic inspections each year.

International disputes

Vietnam is involved in an ongoing territorial dispute over the potentially hydrocarbon rich Spratly Islands. Vietnam, China, the
Philippines, Brunei, Taiwan, and Malaysia all make claims to the Spratlys. The country successfully concluded its lengthy negotiations to
join the World Trade Organisation and joined in January 2007. Vietnam has trade disputes with both the US and the EU.

Main industries

The pace of growth in agriculture weakened in 2007, held back by drought, livestock diseases and avian flu. Rice output declined owing to
a decrease in acreage. However, production of tea, natural rubber and coffee all rose briskly as foreign demand strengthened and export
prices rose. Industrial output rose by 7.9% in the first half of 2007. The government expects growth of 10.6% in 2008. Nike presently
employs about 160,000 Vietnamese making shoes and apparel. The company accounts for about 9% of Vietnam's manufactured exports
and is the second largest supplier of Nike-branded products after China. Quotas on exports of clothing and textiles were abolished after

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Vietnam joined the WTO, leading to a sharp rise in overseas sales. Growth in the services sector is driven by tourism, communications,
transportation and finance. In the tourism industry, the number of tourist arrivals has jumped by more than 1 million over 4 years to 3.5
million. The easing of visa requirements for tourists from Japan and Korea was a factor, prompting an upsurge in tourists from these
countries. The government predicts growth of 8.6% in 2008. Public investment is being channelled into infrastructure, including roads,
ports and power generation facilities. The government also plans a US$33 billion rail link between Hanoi and Ho Chi Minh City.

Economy

Economic performance continues to be robust, fuelled by surging private investment and strong domestic demand. Exports are becoming
more diversified as the share of manufactured exports rises. Investment has surged since Vietnam joined the WTO. Rapid growth of
private remittances and tourism receipts help to boost the economy. Economic progress is uneven. Ho Chi Minh City alone accounts for
17% of national output, 30% of foreign investment and 40% of exports – far in excess of its 9% share of population. Poverty has
nonetheless fallen dramatically from 51% in 1993 to around 20% at the end of 2004. Unemployment has been around 2% for several
years but the number of jobless in the larger cities remains relatively high.

Energy

Vietnam has 600 million barrels of proven oil reserves but that total is likely to increase as exploration continues. Crude oil production fell
in 2007, though Vietnam is still the third-largest oil producer in Asia. The country has six operating oil fields and is in the process of
building its first refinery. The $1.5 billion Dung Quat Refinery, located in Quang Ngai province, will have a capacity of approximately
140,000 bbl/d and should be operational by 2008. A second refinery project is under consideration at Nghi Son, north of Hanoi in the
Thanh Hoa province. The Vietnamese government has estimated the 150,000 bbl/d plant will cost US$3 billion. Natural gas resources total
6.8 trillion cubic feet, with further increases expected as additional fields come on stream. However, much of Vietnam's large population
relies heavily on non-commercial biomass energy sources such as wood, dung, and rice husks. As a result, Vietnam's per capita
commercial energy consumption ranks among the lowest in Asia.

Statistical Summary

2002 2003 2004 2005 2006 2007

Inflation (% change) 3.8 3.1 7.8 8.3 7.7 7.3
Exchange rate (per US$) 15,279.50 15,509.60 15,734.33 15,858.90 15,994.30 16,616.59
Lending rate 9.1 9.5 9.6 11.0 11.2 -
GDP (% real growth) 7.1 7.3 7.8 8.4 8.2 8.3
GDP (national currency millions) 535,762,000.0 613,443,000.0 715,307,000.0 837,858,000.0 973,791,000.0 1,130,030,622.0
GDP (US$ millions) 35,064.1 39,552.5 45,461.5 52,832.0 60,883.6 68,006.2
Population, mid- year ('000) 80,442.1 81,540.1 82,645.1 83,750.3 84,854.8 85,960.8
Birth rate (per '000) 18.6 18.6 18.6 18.6 18.5 18.4

Death rate (per '000) 4.8 4.8 4.9 4.9 4.9 4.9
No. of households ('000) 22,950.1 23,803.1 24,674.2 25,154.2 25,595.1 26,335.0
Total exports (US$ millions) 16,706.0 20,149.3 26,485.0 32,442.0 39,605.0 -
Total imports (US$ millions) 19,746.0 25,255.8 31,968.8 36,978.0 44,410.0 -
Tourism receipts (US$ millions) - - - - - -
Urban population ('000) 20,064.4 20,734.0 21,418.5 22,063.3 22,797.4 23,479.0

Population aged 0- 14 (%) 32.0 31.2 30.4 29.6 28.9 28.1

Urban population (%) 25.1 25.6 26.1 26.5 27.0 27.5
Population aged 15- 64 (%) 62.5 63.3 64.0 64.8 65.6 66.3

Population aged 65+ (%) 5.5 5.5 5.6 5.6 5.6 5.6

Male population (%) 50.0 50.0 50.0 50.0 50.0 50.0

Female population (%) 50.0 50.0 50.0 50.0 50.0 50.0

Life expectancy male (years) 67.3 67.6 67.9 68.2 68.4 68.6
Life expectancy female (years) 72.2 72.5 72.8 73.2 73.5 73.7

Infant mortality (deaths per '000 28.9 27.0 25.3 24.1 23.5 23.0
live births)
Adult literacy (%) 92.8 93.0 93.2 93.3 93.5 93.6

Imports and Exports

Major export destinations 2007 Share (%) Major import sources 2007 Share (%)
Asia-Pacific 37.5 Asia-Pacific 76.7
Europe 29.1 Europe 13.8
North America 23.9 North America 3.8

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 Australasia 7.6 Australasia 2.8
Africa and the Middle East 1.4 Africa and the Middle East 1.7
Latin America 0.5 Latin America 1.1

Date Exported (GMT): 10/02/2008 12:30:59 ©2008 Euromonitor International

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