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

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%

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

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

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

Country Profile: VIETNAM

Minh City. The national railway network uses mainly 1,000 mm metre gauge, although there are several 1,435 mm standard gauge and mixed gauge lines in the North of the country. There were 278 stations on the Vietnamese railway network as of 2005, most of which are located along the North–South line. The Vietnamese railway network is owned and operated by the state-owned enterprise Vietnam Railways Vietnam's road system includes: national roads administered by the central government (marked by red and white milestones); provincial roads managed by provinces (blue and white); district roads managed by districts (green and white); urban roads managed by cities and towns; and commune roads managed by communes. The total length of the Viet Nam road system is about 222,179 km with 19.0% paved, mainly national roads and provincial roads (source: Vietnam Road Administration, 2004). The national road system length is 17,295 km with 27.6% of its length paved. The provincial road system is 27,762 km of length with 23.6% paved. Vietnam operates 37 civil airports, including three international gateways: Noi Bai serving Hanoi, Da Nang serving Da Nang 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 Airports: Can The International Airport Chu Lai International Airport Noi Bai International Airport AIRPORTS AND PORTS 16 Tan Son Nhat International Airport major seaport (s): Cam Pha Port, Da Nang, Haiphong, Phu My, Quy Nho 17 MAJOR STATES Can Tho, Da Nang, Hai Phong, Ha Noi 18 BUSINESS CITIES Ho Chi Minh City, Hanoi 19 GDP PER CAPITA $6,100 20 CURRENCY dong (VND) 21 EXCHANGE RATE (USD/ARP) 21928 per US $ (As on March 2016) Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Agriculture's share of economic output 22 ECONOMY - GENERAL 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. 23 LABOUR FORCE 54.93 million

Country Profile: VIETNAM

Newspaper: Bao Dang, Cong An, Hanoimoi, Mua and Ban MEDIA - PRESS, TV AND OTHER SYSTEM 24 TV: VTVCab, VTVCab5, VTVCab1 Radio: VOV1, VOV2, VOV5 Vietnam Trade Promotion Agency 20 Ly Thuong Kiet St., Ba Dinh Dist., Ha Noi. Tel : (84) (4) 39347628 Fax: (84) (4) 39348142/39344260 Email: [email protected] http://www.vietrade.gov.vn/

Indo-Vietnamese Chamber of Commerce & Industry Indian Merchants' Chamber IMC Marg, Churchgate, Mumbai 400 020 Tel: 22046633 Extn. 108 Fax: 22048508 / 22838281 E-mail: [email protected] INDUSTRY ASSOCIATION AND CHAMBER www.ivcci.org.in 25 OF COMMERCE Chamber of Commerce in Vietnam, Trade & Industry 4th Floor, 9 Dao Duy Anh Str, Hanoi. Tel: +84-4-35743985 / 35743063; Fax: +84-4- 35743985; Email: [email protected]; [email protected] http://vccinews.com/

Vietnam Chamber of Commerce and Industry in Hanoi Address: 171 Vo Thi Sau St., Ward 7, District 3, HCMC Phone: (84.8) 3932 6598 Fax: (84.8) 3932 5472 Email: [email protected] [email protected] or [email protected] Vietnam Bank for Industry and Trade, Joint Stock Commercial Bank for Foreign Trade of Vietnam, 26 BANKS Bank for Investment and Development of Vietnam Vietnam Bank for Agriculture and Rural Development Weapons, ammunition, explosive materials, 27 BANNED ITEMS Second-hand consumer goods, Second-hand materials and transport facilities, Jan 1 New Year's Day Feb 7 Vietnamese New Year's Eve Feb 8 Vietnamese New Year

HOLIDAYS - NATIONAL/PUBLIC 28 Feb 9 -13 Feb Tet holiday Apr 16 Vietnamese Kings' Commemoration Day Apr 30 Liberation Day/Reunification Day

Country Profile: VIETNAM

May 1 Labour Day May 2 Liberation Day/Reunification Day observed May 2 International Labor Day observed Sep 2 Independence Day Mr. Ton Sinh Thanh Ambassador 17, Kautilya Marg, Chanakyapuri, New Delhi 110 021, INDIA 29 Embassy of Vietnam in India Telephone: (011) 301 8059 Fax No : 91-11) 2301 9818; (91-11) 2301 0532 Website- www.vietnameseembassy.org Email- [email protected] Mr. Shri P Harish, Ambassador 58-60, Tran 30 Embassy of India in Vietnam Hung Dao Street, Hoan Kiem District, Hanoi Website: http://www. ndembassy.com.vn E-mail- [email protected] Vietnam National Administration of Tourism 31 TRAVEL INFORMATION www.vietnamtourism.gov.vn/english Nha Trang, Cu Chi Tunnels, Mekong Delta, 32 PLACES OF TOUISTS INTEREST Mui Ne, Sa Pa Terraces SAIGON 6.4.16-9.4.16 FABRIC & GARNMENT ACCESSORIES EXPO TRADE FAIRS AND EXHIBITIONS HELD HANOI 30.03.16- .02.4.16 33 RELATED TO HANDICRAFTS COSMOBEAUTY VIETNAM 21.4.2016 VIETNAM EXPO 13.4.2016-16.4.2016 LIFESTYLE VIETNAM 18.4.2016-21.4.2016

Country Profile: VIETNAM

Tariff applicable in Vietnam in 2015

Vietnam ITC HS MFN Preferential Description Code rate rate 330190 ATTARS OF ALL KINDS IN FIXED OIL BASE 5 3 AGARBATTI" & OTHR ODORIFEROUS PRPNS 330741 WHICHOPERATE BY BURNING OTHER ODORIFEROUS PRPNS USD FOR 330749 DEODORIZING ROOM (EXCL AGARBATTI) 340600 CANDLES WATCHBOX JEWELLERY BOX AND SIMILAR 392310 CONTAINER OF PLASTICS 11 10 WOODEN FRAMES FOR PAINTING, 441400 PHOTOGRAPHS, MIRRORS OR SIMILAR OBJECTS 441900 TABLEWARE 442010 STATUTTES & OTHER ORNAMENTS OF WOOD 20 20 442090 WOOD MARQUETRY & INLAID WOOD PARTS OF DOMESTIC DECORATIVE ARTICLES 442190 USED AS TABLEWARE & KITCHENWARE 24.44 19.44 COIR MATS & MATTING BOUND IN PARALLEL 460120 STAND PLNTS & SMLR PRDCTS OF PLATNG MATRLS PLATS& SMLR PRODCTS PLACD SIDE BY SIDE & 460199 BOUND TOGETHER IN FORM OF SHEETS (E.G.MATS ETC) 460219 PALM LEAF BASKET ETC BASKETWORK, WICKERWORK AND OTHER 460211 ARTICLES, OF BAMBOO. BASKETWORK, WICKERWORK AND OTHER 460212 ARTICLES, OF RATTAN. OTHER - FURNISHING 630491 ARTICLS,KNTD/CROCHETED 630790 DRESS MATERIAL HANDPRINTED OF SILK 15 8.33 HATS & OTHR HEADGEAR PLTD/MADE BY 650400 ASSMBLNGSTRIPS OF ANY MATRLS W/N LIND/TRMMD OTHER HEADGEAR, HATS, KNITTED / 650590 CROCHETTED MADE UP FROM LACES ETC W/N LIND/TRMMD WALKING STICKS, SEAT STICKS, WHIPS, RIDING 660200 CROPS, AND THE LIKE 670100 FEATHERS DUSTERS 670290 ARTIFICIAL FLOWERS ETC OF OTHER MATERIALS OTHERS-OTHER ARTCLS OF STONES/OTHR 681599 MINRLS 5 3 OTHERS -WATER FILTERS OF A CAPACITY NOT 691190 EXCEEDING 40 LTRS. OF PORCELAIN OTHER - GLSSWR FR TBL KTCHN,TOLT,OFFC 701328 INDOR DCORTION (EXCL GOODS OF HDG NO

Country Profile: VIETNAM

7010/7018)

701333 OF LEAD CRYSTAL OTHERS -GLSSWR FR TBL KTCHN,TOLT,OFFC 701337 INDOR DCORTION (EXCL GOODS OF HDG NO 7010/7018) GLSSWR FR TBL KTCHN,TOLT,OFFC INDOR 701341 DCORTION (EXCL GOODS OF HDG NO 7010/7018) GLSSWR FR TBL KTCHN,TOLT,OFFC INDOR 701349 DCORTION (EXCL GOODS OF HDG NO 7010/7018) 35 35 701391 OF LEAD CRYSTAL 711711 CUFFLINGS AND STUDS 711719 BANGLES 25 25 JEWELLERY STUDDED WITH IMITATION PERALS 711790 OR IMITATION OR SYN. STONES 25 25 OTHER HOUSEHOLD ARTICLES OF CAST IRON 732392 ENAMELLED UTENSILS - OTHER HOUSEHOLD ARTICLES OF 732394 IRON (OTHER THAN CAST IRON)OR STEEL,ENAMELLED 741810 OF EPNS OTHER TABLE AND KITCHENWARE OF 761510 ALUMINIUM 26 21 940330 CABINETWARE 940350 BED STEAD 940360 OTHER WOODEN FURNITURE 22.5 11 940381 FURNTIURE OF WICKERWORK/BAMBOO OTHER - FURNITURE OF OTHER MATERIALS, 940389 INCLUDING CANE, OSIER, BAMBOO PR SIMILAR MATERIALS 22.5 18.25 940390 PARTS OF FURNITURES OF HEADING 9403 20 20 HANDMADE POUFFES/ARTICLES OF BEDDING, 940490 CUSHIONS ETC 20 15 940510 HANGNG LMPS COMPLETE FITNGS 13.75 10.75 940530 LGHTNG SETS OF A KIND USD FR CHRISTMS TREE 950510 ARICLES OF CHRISTMAS 950590 OTHER MAGICAL EQUIPMENTS 960190 WRKD MOTHR OF PEARL & ARTCLS THEROF WORKED VEGETABLE CARVING MATERIAL & 960200 ARTICLES THEREOF 16.67 16 BROOMS & BRUSHES,CONSTNG OF TWIGS/OTHR 960310 VGTBL MTRLS BOUND TOGTHR,WTH/WTHT HNDLS 25 15 BUTTONS OF BASE METAL NOT COVERED WITH 960622 TEXTILE MATERIAL 25 20 SMOKING PIPES (INCLUDING PIPE BOWLS) & 961400 CIGARS AND CIGGERATE HOLDERS AND PARTS THEREOF 970110 MADHUBANI PAINTINGS(ON TXTLS)

Country Profile: VIETNAM

DOMESTIC ARTICLES OF WOOD HAND 970190 DECORATED 5 4 970200 ORIGNL ENGRVNGS,PRNTS & LITHOGRPHS 970300 ORIGINAL SCULPTURE & STATUARY IN METAL 0 0 970500 STUFFED ANIMALS & BIRDS (TAXIDERMY) ANTIQUES OF AN AGE EXCDNG ONE HUNDRED 970600 YRS HANDBAGS OF OTHER MATERIALS EXCLUDING 420229 WICKER WORK OR BASKET WORK 25 25 420231 JEWELLERY BOX - SURFACE OF LEATHER 25 20 420239 JEWELLERY BOX - OTHER SURFACE OF LEATHER 480210 HAND MADE PAPER PRODUCT CONSISTINGS OF SHEETS OF PAPER/ 482390 RBORD, IMPREGNGTED,COTED OR COVERED WITH PLASTICS 19.23 11.92 580430 HAND MADE LACE HAND WOOVEN TAPESTRIES HAND MADE OR 580500 NEDDLE WORKED BY HAND, OF COTTON - EMBRODIERY 580810 BRAIDS, IN PCS OTHER THAN OF COTTON 12 5 EMBORIDERY IN THE PIECE, IN STRIPS OR IN 581010 MOTIFS - EMBRODIERY WITHOUT VISIBLE GROUND 581092 EMBROIDERY BADGES, MOTIFS AND THE LIKE 12 5 581100 KANTHA - EMBROIDERY ENSAMBLES OF WOOL OR FINE ANIMAL HAIR - 610431 CROCHETTED 611710 SHAWLS OF WOOL 20 10 640610 EMBROIDERED UPPERS OF TEXTILE MATERIALS TABLEWARE OF BONE CHINA AND SHOFT 691110 PORCELAIN 35 30 CERAMIC TABLEWARE (E.G. OF IMITATION 691200 PORCELAIN/OR SEMI-PORCELAIN) 691310 STATUETTES ETC OF PORCELAIN/CHINA 30 22.5 OTHER STATUETTE ETC (EXCL OF PORCLAIN 691390 /CHINA 30 20 691410 OTHER CERMC ARTCLS OF PORCELAIN / CHINA 30 22.5 OTHER CERMC ARTCLS EXCL OF PORCELAIN / 691490 CHINA 30 22.5 700992 OTHR GLASS MIRRORS, FRAMED 30 30 701810 BANGLES 701890 GLASS STATUE OF OTHR ARTCLE OF HDG 7018 30 30 702000 GLOBES FOR LAMPS & LANTERNS 14.71 10.43 711311 SILVER FILLIGREE WORK UTENSILS ARICLES OF COPPER ALLOYS 741999 ELECTROPLATED WITH NICKLE SILVER 2.86 1.71 830621 OTHER ORNMNT PLTED WITH PRCS METAL 830629 OTHR STATUETTES(EXCLUDING WORKS OF ART) 25 15

Country Profile: VIETNAM

830630 PHOTOGRPH,PICTURE/SMLR FRAMES,MIRORS 830890 IMITATION ZARI SPANGLES 25 25 920290 OTHER STRING MUSICAL INSTRUMENTS 920590 FLUTES PERCUSSION MUSICAL INSTRUMENTS (E.G. 920600 DRUMS, XYLOPHONES, CYMBOLS, CASTENETS, MARACAS) 3 3 940550 HURRICANE LANTERNS PEN HOLDERS PENCIL HOLDERS AND SIMILAR 960899 HOLDERS 25 20 830610 BELLS GONGS AND THE LIKE 25 15 482370 ARTICLE OF PAPER MACHIE 640320 KOLAPURI CHAPPALS AND SIMILAR FOOTWEAR 30 20 Source: WIS, TRAINS