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The conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the communist North and anti-communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies, the persecution and mass exodus of individuals - many of them successful South Vietnamese merchants - and growing international isolation. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The communist leaders maintain tight control on political expression but have demonstrated some modest steps toward better protection of human rights. The country continues to experience small-scale protests, the vast majority connected to either land-use issues, calls for increased political space, or the lack of equitable mechanisms for resolving disputes. The small-scale protests in the urban areas are often organized by human rights activists, but many occur in rural areas and involve various ethnic minorities such as the Montagnards of the Central Highlands, Hmong in the Northwest Highlands, and the Khmer Krom in the southern delta region.

Location

Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia

Natural Resources

phosphates, coal, manganese, rare earth elements, bauxite, chromate, offshore oil and gas deposits, timber, hydropower, arable land

Population - distribution

though it has one of the highest population densities in the world, the population is not evenly dispersed; clustering is heaviest along the South China Sea and Gulf of Tonkin, with the Mekong Delta (in the south) and the Red River Valley (in the north) having the largest concentrations of people

89571130
Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon-Khmer and Malayo-Polynesian)
Ho Chi Minh City 7.298 million; HANOI (capital) 3.629 million; Can Tho 1.175 million; Haiphong 1.075 million; Da Nang 952,000; Bien Hoa 834,000 (2015)
Conventional long form
Socialist Republic of Vietnam
Conventional short form
Vietnam
Local long form
Cong Hoa Xa Hoi Chu Nghia Viet Nam
Local short form
Viet Nam
communist state
Name
Hanoi
Geographic coordinates
21 02 N, 105 51 E
Time difference
UTC+7 (12 hours ahead of Washington, DC, during Standard Time)
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally planned, highly agrarian economy since 1986 to a more industrial and market based economy, raising incomes substantially. In 2016, Vietnam missed its yearly growth target of 6.7% due to environmental issues – drought and salinization - impacting the agricultural sector and low oil prices affecting the extractive sector. However, annual GDP growth was 6.2%, reflecting strengthening domestic demand and strong manufacturing exports.
Inflation
0.879%
External debt stocks
US$ 77,798,272,000
Total tax rate (% of commercial profits)
39.4%
Real Interest Rate
5.785%
Manufacturing, value added (% of GDP)
15.858%
Current Account Balance
US$ 906,000,000
Labor Force, Total
55,930,177
Employment in Agriculture
43.62%
Employment in Industry
23.11%
Employment in Services
33.27%
Unemployment Rate
2.18%
Imports of goods and services
US$ 184,506,772,263
Exports of goods and services
US$ 189,696,980,606
Total Merchandise Trade
173.24%
FDI, net inflows
US$ 11,800,000,000
Commercial Service Exports
US$ 11,200,000,000
rice, coffee, rubber, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; pork; poultry; seafood
food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones
Commodities
clothes, shoes, electronics, seafood, crude oil, rice, coffee, wooden products, machinery
Partners
US 21%, China 13.2%, Japan 8.4%, South Korea 5.4%, Germany 4.1% (2015)
Commodities
machinery and equipment, petroleum products, steel products, raw materials for the clothing and shoe industries, electronics, plastics, automobiles
Partners
China 34%, South Korea 14.2%, Singapore 6.5%, Japan 6.4%, Hong Kong 5.1%, Thailand 4.5% (2015)
Country Risk Rating
B
Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behavior. Corporate default probability is appreciable.
Business Climate Rating
C
The business environment is difficult. Corporate financial information is often unavailable and when available often unreliable. Debt collection is unpredictable. The institutional framework has many troublesome weaknesses. Intercompany transactions run major risks in the difficult environments rated C.
  • Cheap, skilled labor
  • Strong agricultural potential and natural resources
  • Development strategy based on openness, a move upmarket and diversification of the economy
  • Economy barely effected by the Chinese slowdown
  • Shortcomings in the business climate
  • Lack of infrastructure
  • Unfinished reform of the public sector
  • Growing inequality
  • Weak banking system

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