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Country Profile: VIETNAM

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Country Profile: VIETNAM Country Profile: VIETNAM Introduction: Vietnam is the easternmost country on the Indochina Peninsula in Southeast Asia. Vietnam is bordered by China to the north, Laos to the northwest, and Cambodia to the southwest, and Malaysia across the South China Sea to the southeast. Its capital city has been Hanoi since the reunification of North and South Vietnam in 1975. Vietnam was part of Imperial China for over a millennium, from 111 BC to AD 939. An independent Vietnamese state was formed in 939, following a Vietnamese victory in the Battle of Bach Dang River. Successive Vietnamese royal dynasties flourished as the nation expanded geographically and politically into Southeast Asia, until the Indochina Peninsula was colonized by the French in the mid-19th century. Following a Japanese occupation in the 1940s, the Vietnamese fought French rule in the First Indochina War, eventually expelling the French in 1954. Thereafter, Vietnam was divided politically into two rival states, North and South Vietnam. Conflict between the two sides intensified in what is known as the Vietnam War. The war ended with a North Vietnamese victory in 1975. Note: Representative map 1 Country Profile: VIETNAM Population As of 2014, the population of Vietnam as standing at approximately 90.7 million people. The population had grown significantly from the 1979 census, which showed the total population of reunified Vietnam to be 52.7 million. In 2012, the country's population was estimated at approximately 90.3 million. Currently, the total fertility rate of Vietnam is 1.8 (births per woman), which is largely due to the government's family planning policy, the two-child policy. According to the 2009 census, the dominant Viet or Kinh ethnic group constituted nearly 73.6 million people, or 85.8% of the population. The Kinh population is concentrated mainly in the alluvial deltas and coastal plains of the country. A largely homogeneous social and ethnic group, the Kinh possess significant political and economic influence over the country. However, Vietnam is also home to 54 ethnic minority groups, including the Hmong, Dao, Tay, Thai, and Nung. Many ethnic minorities – such as the Muong who are closely related to the Kinh – dwell in the highlands, which cover two-thirds of Vietnam's territory Economy Vietnam is a developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Agriculture's share of economic output has shrunk from about 25% in 2000 to 18% in 2014, while industry's share increased from 36% to 38% in the same period. State-owned enterprises now account for only about 40% of GDP. Vietnamese authorities have reaffirmed their commitment to economic modernization and a more open economy. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam was one of the 12- nations that concluded the Trans-Pacific Partnership free trade agreement negotiations in 2015. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. During 2015, Vietnam's managed currency, the dong, depreciated about 5%. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. Vietnam is trying to reform its economy by restructuring public investment, state-owned enterprises, and the banking sector, although Hanoi’s progress in meeting its goals is lagging behind the proposed schedule. Vietnam's economy continues to face challenges from an undercapitalized banking sector and nonperforming loans. Key Economic Indicators of Vietnam during 2015 GDP PPP $551.3 billion Real growth 6.5% 2 Country Profile: VIETNAM rate Per capita $6,100 Composition agriculture: 17.4%, industry: 38.8%, services: 43.7% International Trade Export $158.7 billion Major Export clothes, shoes, electronics, seafood, crude oil, rice, coffee, Item wooden products, machinery Major Export US 20%, China 10.4%, Japan 10.3%, South Korea 5% partner Import $150.4 billion Major Import machinery and equipment, petroleum products, steel Items products, raw materials for the clothing and shoe industries, electronics, plastics, automobiles Major Import China 30.4%, South Korea 15%, Japan 8.9%, Thailand partner 4.9%, Singapore 4.7%, US 4.4% Source: CIA Fact book In 1986, the Sixth National Congress of the Communist Party introduced socialist-oriented market economic reforms as part of the DOI MOI1 reform program. Private ownership was encouraged in industries, commerce and agriculture. Manufacturing, information technology and high-tech industries now form a large and fast-growing part of the national economy. Though Vietnam is a relative newcomer to the oil industry, it is currently the third-largest oil producer in Southeast Asia, with a total 2011 output of 318,000 barrels per day Since the early 2000s, Vietnam has applied sequenced trade liberalisation, a two-track approach opening some sectors of the economy to international markets while protecting others. In July 2006, Vietnam updated its intellectual property legislation to comply with TRIPS, and it became a member of the WTO on 11 January 2007. Vietnam is now one of Asia's most open economies: two-way trade was valued at around 160% of GDP in 2006, more than twice the contemporary ratio for China and over four times the ratio for India. The major agricultural products produced in Vietnam are , rice, coffee, rubber, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafood. Vietnam also produces food processing, garments, shoes, machine-building; mining, coal, steel; cement chemical fertilizer, glass, tires, oil, and mobile phones in a large volume. 1 Economic reforms initiated in Vietnam in 1986 with the goal of creating a socialist-oriented market economy 3 Country Profile: VIETNAM INDIA’S EXPORTS OF HANDICRAFTS TO VIETNAM (2013-2015) US$ Million Sl. no Items 2013-2014 2014-15 Growth rate (%) 1. ARTMETALWARES 0.18 0.13 -27.8 2. WOODWARES 0.07 0.01 -85.7 3. HAND PRINTED TEXTILES & SCARVES 0.22 0.03 -86.4 4. HAND KNITTED AND CROCHETTED GOODS - 0.01 5. SHAWLS AS ARTWARE - - 6. ZARI & ZARI GOODS - - 7. IMITATION JEWELLERY 0.03 0.10 233.3 8. MISCELLANEOUS HANDICRAFTS 1.28 1.54 20.3 Total 1.78 1.82 2.2 Source- DGCI&S Kolkata Indian trade relation with Vietnam is also increasing significantly. The volume of export during 2014-15 from India to Vietnam was to the tune of USD 6257.88 million while the total import from Vietnam was USD 3003.35 million. The share of Handicrafts export in total export from India to Vietnam was 0.02 percent of India’s total export to Vietnam. Trade Policy2: Viet Nam bound the entire tariff schedule in the context of its WTO accession, and mostly in the 0-40% range. The simple average MFN tariff has declined significantly, from 18.5% in 2007 to 10.4% in 2013, as Viet Nam has been phasing-in its tariff concessions. However, differences between bound and applied rates have left some scope for flexibility, and Viet Nam has made use of this, inter alia, to reduce fluctuations in domestic energy prices, and to provide additional protection to selected industries since 2008. Tariff rate quotas regulate imports of eggs, sugar, unmanufactured tobacco and tobacco refuse, and salt. A special consumption tax is levied on certain goods and services including cigarettes, alcoholic beverages, motor vehicles, motor cycles, and golf and gambling services. Tax rates were equalized on imported and domestically produced alcoholic beverages as a result of Viet Nam's WTO accession. Nevertheless, valuation differences in the tax base may provide an advantage to local producers. Viet Nam introduced an environmental protection tax on five product categories with effect from 1 January 2012, in part replacing earlier surcharges on various fuels. Value-added tax, which is levied at a general rate of 10%, constitutes almost one third of the Government's total tax revenue, while trade taxes seem to account for one tenth. As for non-tariff measures, Viet Nam prohibits the importation of goods generally considered harmful to human health and safety, or national security. Import restrictions may be applied to comply with international treaties and conventions to which Viet Nam is a party. "Line management", i.e. licences issued by the Ministry of Industry and Trade for 2 https://www.wto.org/english/tratop_e/tpr_e/s287_sum_e.pdf 4 Country Profile: VIETNAM imports regulated by other ministries, is applied to the importation of various goods. According to the authorities, the system includes automatic and non-automatic licensing procedures. FACT SHEET: COUNTRY INFORMATION AT-A-GLANCE Vietnam S. DETAILS ITEMS No. Vietnam is the easternmost country on the 1 LOCATION OF COUNTRY Indochina Peninsula in Southeast Asia. communist state 2 GOVERNMENT & ADMINISTRATION Hanoi 3 CAPITAL OF THE COUNTRY Nguyễ n Xuân Phúc , Prime Minister 4 HEAD OF THE GOVERNMENT tropical in south; monsoonal in north with hot, rainy season (May to September) and warm, 5 CLIMATE AND TEMPERATURE dry season UTC+7 6 TIME AND TIME DIFFERENCE FROM INDIA Southeast Asia 7 ECONOMIC REGION/ZONE Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and 8 NEIGHBOURING COUNTRIES Cambodia 331,210 sq km 9 AREA COVERED Vietnamese 10 OFFICIAL LANGUAGE French, Chinese, and Khmer, 11 LANGUAGE SPOKEN 12 POPULATION 94,348,835 none 80.8%, Buddhist 9.3%, Catholic 6.7%, Hoa Hao 1.5%, Cao Dai 1.1%, Protestant 0.5%, 13 MAJOR RELIGION Muslim 0.1%, 220 volts AC, 50Hz. 14 ELECTRICITY SUPPLY SYSTEM-VOLTAGE The Vietnamese railway network has a total length of 2,600 kilometres (1,600 mi), TRANSPORT SYSTEM dominated by the 1,726 kilometres 15 (1,072 mi) single track North–South Railway running between Hanoi and Ho Chi 5 Country Profile: VIETNAM Minh City.
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