Introducing Vietnam

• Xin Chao
 A snap shot on history …..
Years Major Events

111BC-939AD Chinese occupation

1535 European Jesuits/Traders
1802 French Given Trading Concessions

1858 France invades Vietnam

1860 - 1945 French occupation

1945 Ho Chi Minh declares the formation of the Democratic Republic of Vietnam

1945 - 1954 French reoccupation finally defeated in battle of Dien Bien Phu in 1954

1954 Geneva Convention 17th Parallel division of Vietnam

1959 US Military Advisors in the South
1965 US Marine Corps Lands in Da Nang

1973 Signing of Paris Peace Accord (US / North Vietnam)

1975 Fall of Saigon - Reunification of Vietnam

1976 - 1979 Implementation of an unified socialist society

1979 Vietnam defeats Khmer Rouge, eradicating incursions inside its borders and liberates Cambodia
China invades Vietnam and is quickly repelled
 Big events…
Years Major Events

1986 Doi Moi (renovation) Congress - Open Door Policy Reforms

1987 Foreign Investment Law liberalises market access

1988 Decree 10/CP Extensive Agricultural Reform

1990 Vietnam is the world's 3rd largest exporter of rice

1991 Ban on TV Advertising lifted

1994 US Embargo lifted

1995 Vietnam joins ASEAN

1997 Vietnam becomes world's second largest exporter of rice

Value Added Tax (VAT) introduced
1999
Foreign investors allowed to pay wages in local currency

2000 Private Enterprise Law

2001 US Bilateral Trade Agreement

2002 Tourism booms - Vietnam A Safe Destination

2003 Host 22nd SEA Games

Trade & FDI gets a push – Vietnam hosts international trade fairs like GMS (2004), ASEAN &
2004 Vietnam Expo
Vietnam – past and
present
 GDP Per Capital (US$)

Govnt forecast for 2005 was $644 (as at October ‘05) and $1,000 by 2010
GDP has grown on average 8% per year over the last decade.
 Inflation rate
80
70
60
50
40
30
20
10
-10
64
provinces
…and is
home to
54
different
ethnic
groups
 Red River Delta
Total pop 21,200,000
10% of retail sales
Rural Communities in
the most densely
populated regions of
Vietnam

Mekong Delta
Total pop 19,800,000
20% of retail sales
 Hanoi
Sapa Capital City
Hill-tribe pop 4,000,000
communities
Red River Delta
Vietnam is a Rural Communities
truly diverse
country... Hoi An
Hue Colonial
Royal Citadel & architecture &
Nguyen dynasty ancient temples
tombs
South East
Dalat Coast
Hill-station surrounded Beach resorts &
by mountains & sand dunes
waterfalls
Ho Chi Minh City
Mekong Delta The Business
Rural Communities Capital
pop 7,500,000
 Hanoi
Capital city & the
country’s second
largest
pop 4,000,000*
Ho Chi Minh City
The Business
Capital & the largest city 9% of total market
pop 7,500,000* retail sales

25% of total market retail sales

*estimate population including migrant labour

 Quick View
Culture: Rich, old history forms much
of the cultural psyche. If traced and
considered the culture becomes
immersed in Chinese history.

Climate: Tropical
monsoon. Big
differences North and
South.

Political climate: The Social Republic

of Vietnam is a one-party communist
Religions: Buddhism, Roman state. Although conservatively
Catholicism, Caodaism, communist, Vietnam has undertaken
Ancestor Worship some reforms in recent years.
 Vietnam Economy - SWOT
Strengths: Weaknesses:
Moderate GDP Growth, 1998-2002 Export Growth Slowing to 2002
Rapid Export, Industrial Growth FDI Disappointing
Explosive Private Firm Formation Rising Investment to Growth Ratios
Good Poverty Reduction to 1997-98 Weird Dualism
Macroeconomic Stability Poor Industrial Investments
Good Social Indicators Growing Rural-Urban Income Split

Opportunities: Threats:
Better Provincial Policies Overemphasis on Directed Investments
Sustain Private FirmGrowth Poor Education Quality (Likely)
Attract More/Better FDI Need for More IT Progress (Quality/Use)
Funds Available for Efficient Use Rising Regional and Urban/Rural Inequality
Possible WTO Entry Delay

Source: Vietnam’s Economy: Success Story or Weird Dualism?