VIETNAM

GROUP-8 (TERM-iii)

SUBMITTED TO Prof. Rajkishan nair

SUBMITTED BY
Deepak kumar jaiswal (FT-11-1095) Sushant kumar samantaray (FT-11-1113) Varun singh chauhan (FT-11-1100) PGDM -SEC-B (2011-13)

CONTENTS 1. DEMOGRAPHIC STRUCTURES 2. GEOGRAPHIC STRUCTURES 3. HISTORY 4. OVERVIEW OF ECONOMY 5. CONTRIBUTION TO TOTAL GDP 6. DETAILS OF EXPORTS AND IMPORTS 7. THE PURCHASING POWER PARITY OF VIETNAM 8. MONETARY POLICY 9. FISCAL POLICY 10. REPORT SUMMARY. 11. BIBILIOGRAPHIES.

VIETNAM

DEMOGRAPHIC REPORT This article is about the demographic features of the population of Vietnam including population density ethnicity education level, health of the populace, economic status, religious affiliations and other aspects of the population. Originating in what is now southern China and northern Vietnam the Vietnamese people pushed southward over two millennia to occupy the entire eastern seacoast of the Indochinese Peninsula. Ethnic Vietnamese or Vietnam live in the lowlands and speak the Vietnamese language. This group dominates much of the cultural and political landscape of Vietnam.

Total population

Population aged 0-14 (%)

Population aged 15-64 (%)

Population aged 65+ (%)

1950

28 264

31.9

63.9 4.2

1955

31 329

35.6

60.1 4.3

1960

35 173

40.1

55.5 4.4

1965

39 885

44.1

51.3 4.6

1970

44 928

44.2

50.9 4.8

1975

49 896

42.9

52.3 4.8

1980

54 023

40.7

54.3 4.9

1985

60 307

39.4

55.7 4.9

1990

67 102

38.0

57.0 5.0

1995

74 008

36.5

58.4 5.1

2000

78 758

32.1

62.3 5.6

2005

83 161

27.3

66.8 5.9

2010

87 848

23.6

70.4 6.0

Population

90,549,390 (July 2011 EST.) Age structure 0-14 years: 25.2% (male 11,945,354/female 10,868,610) 15-64 years: 69.3% (male 31,301,879/female 31,419,306) 65 years and over: 5.5% (male 1,921,652/female 3,092,589) (2011 EST.)
Median age Total: 27.8 years male: 26.8 years female: 28.9 years (2011 EST.) Population growth rate 1.077% (2011 EST.) Birth rate 17.07 births/1,000 population (2011 EST.) Death rate 5.96 deaths/1,000 population (July 2011 EST.) Net migration rate -0.35 migrant(s)/1,000 population (2011 EST.) Urbanization Urban population: 30% of total population (2010) rate of urbanization: 3% annual rate of change (2010-15 EST.) Sex ratio At birth: 1.117 male(s)/female under 15 years: 1.1 male(s)/female 15-64 years: 0.99 male(s)/female 65 years and over: 0.62 male(s)/female total population: 0.99 male(s)/female (2011 EST.)

Religions Buddhist 9.3%, Catholic 6.7%, Hoe Hao 1.5%,

Cao Dai 1.1%, Protestant 0.5%, Muslim 0.1%, none 80.8% (1999 census) Languages Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon-Khmer and Malayo-Polynesian)

GEOGRAPHY Vietnam is located on the eastern margin of the Indochinese and occupies about 331,688 square kilometers, of which about 25 % was under cultivation in 1987. It borders the gulf of Thailand and South China Sea, alongside china, Laos, and Cambodia. The S-shaped country has a northto-south distance of 1,650 kilometers and is about 50 kilometers wide at the narrowest point. With a coastline of 3,260 kilometers, excluding islands, Vietnam claims 12 nautical miles (22.2 km; 13.8 mi) as the limit of its territorial waters, an additional 12 nautical miles (22.2 km; 13.8 mi) as a contiguous customs and security zone, and 200 nautical miles (370.4 km; 230.2 mi) as an exclusive economic zone. The boundary with Laos, settled, on both an ethnic and geographical basis, between the rulers of Vietnam and Laos in the mid-seventeenth century with the annanite range as a reference was formally defined by a delimitation treaty signed in 1977 and ratified in 1986. The frontier with Cambodia, defined at the time of French annexation of the western part of the Mekong river delta in 1867, remained essentially unchanged, according to Hanoi, until some unresolved border issues were finally settled in the 1982-85 period. The land and sea boundary with China, delineated under the France-China treaties of 1887 and 1895, is "the frontier line" accepted by Hanoi that China agreed in 1957- 58 to respect. However, in February 1979, following China's limited invasion of Vietnam, Hanoi complained that from 1957 onward China had provoked numerous border incidents as part of its anti-Vietnam policy and expansionist designs in Southeast Asia. Among the territorial infringements cited was the Chinese occupation in January 1974 of the Paracel Island, claimed by both countries in a dispute left unresolved in the 1980s. Location: -Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, alongside China, Laos, and Cambodia

Geographic -

16 00 N, 106 00 E

Map references: -Southeast Asia Area: Total- 329,560 sq km land: 325,360 sq km water: 4,200 sq km slightly larger than New Mexico

Area -:

Land boundaries: total: 4,639 km border countries: Cambodia 1,228 km, China 1,281 km, Laos 2,130 km Coastline: 3,444 km (excludes islands) Maritime claims: territorial sea: 12 nm contiguous zone: 12 nm exclusive economic zone: 200 nm continental shelf: 200 nm or to the edge of the continental margin Climate: tropical in south; monsoonal in north with hot, rainy season (mid-May to midSeptember) and warm, dry season (mid-October to mid-March) Terrain: low, flat delta in south and north; central highlands; hilly, mountainous in far north and northwest

HistoryThe Vietnamese are descendants of nomadic Mongols from China and migrants from Indonesia. According to mythology, the first ruler of Vietnam was Hung Dugong, who founded the nation in 2879 B.C. China ruled the nation then known as Nam Viet as a vassal state from 111 B.C. until the 15th century, an era of nationalistic expansion, when Cambodians were pushed out of the southern area of what is now Vietnam. A century later, the Portuguese were the first Europeans to enter the area. France established its influence early in the 19th century, and within 80 years it conquered the three regions into which the country was then dividedCochin-China in the south, Annam in the central region, and Tonkin in the north. France first unified Vietnam in 1887, when a single governor-generalship was created, followed by the first physical links between north and southa rail and road system. Even at the beginning of World War II, however, there were internal differences among the three regions. Japan took over military bases in Vietnam in 1940, and a pro-Vichy French administration remained until 1945. Veteran Communist leader Ho Chi Minh organized an independence

movement known as the Vietminh to exploit the confusion surrounding France's weakened influence in the region. At the end of the war, Ho's followers seized Hanoi and declared a shortlived republic, which ended with the arrival of French forces in 1946. Paris proposed a unified government within the French Union under the former Annanite emperor, Boa Dai. Cochin-China and Annam accepted the proposal, and Boa Dai was proclaimed emperor of all Vietnam in 1949. Ho and the Vietminh withheld support, and the revolution in China gave them the outside help needed for a war of resistance against French and Vietnamese troops armed largely by a United States worried about cold war Communist expansion.

Economy - overview
Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises (SOEs), which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the WTO in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 20% in 2010, while industry's share increased from 36% to 41% in the same period. Deep 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. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-10 growing less than the 7% per annum average achieved during the last decade.

In 2010, exports increased by more than 25%, year-on-year, but the trade deficit remained high, prompting the government to consider administrative measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance, and, since 2008, the government devalued it by 20% through a series of small devaluations.

GDP COMPOSITION BY SECTOR

Contribution to GDP - 2010

20.60% 38.30%
Agriculture Industry

41.10%

Services

The above chart shows that in Vietnam the industry sector is contributing major part of the gross domestic production which is a positive encouraging sector , these are the given below contribution of industries, which shows the acceleration in the industrial growth.

MAJOR INDUSTRIES IN VIETNAM

The purchasing power parity of Vietnam

GDP (purchasing power parity): $276.6 billion (2010 est.) country comparison to the world: 42 $259 billion (2009 est.) $245.9 billion (2008 est.)

The purchasing power parity shows that since 2008 it is increasing constantly which is a positive sign for country and also reflects the Propensity to consume and saving as a result of increase in per capita income . GDP - per capita (PPP): $3,100 (2010 est.) country comparison to the world: 166 $2,900 (2009 est.) $2,800 (2008 est.) Note: data are in 2010 US dollars Per capita income is not good as compare to other countries but it shows a positive sign of improvement.

Gross domestic product (GDP) refers to the market value of all final
goods and services produced within Vietnam in a given period. GDP per capita is often considered an indicator of a country's.

Vietnam GDP US$ 118.567 billion (2010 estimate)

The real growth rate (GDP) The Vietnams GDP has shown a positive hope which is increasing over a period of 2008; it shows that economy is on the pace of growth.
2008 6.3% 2009 5.3% 2010 6.8% 2011* 6.3%

The share of total GDP of world. The sharing is also increasing as its vital impact on the economy shows the real growth in the system , which states the effective measures to adopt the changes in the economy .

1980 0.14% 1990 -0 .19% 2000 - 0.26% 2010 -0.37% Inflation rate Inflation rate (consumer prices): 9% (2010 est.) country comparison to the world: 195 7% (2009 est.)

 Investment

Investment (gross fixed): 33.9% of GDP (2010 est.) country comparison to the world: 20 These are the real growth and development statistics which shows the economy and the real situation of Vietnam and the contribution of various sectors.

The monetary and exchange rate policy of Vietnam

Monetary Policy: Policy rates used actively in early 2008, but less so since. Monetary policy has been more responsive than policy rates suggest. OMOs used to tighten/loosen liquidity (driving interbank rates far from policy rates on occasion) Moral suasion, credit targets, and regulations also deployed. Inflation in 6-10 percent range considered acceptable

Exchange rate:

Formal peg with (now) relatively narrow band. Peg adjusted relatively frequently to accommodate pressure on dong Trading outside band tolerated, as means of absorbing pressure. Embedded expectation of declining trend in VND, largely accommodated

The exchange rate of Vietnam against US $

Dong (VND) per US dollar 19,148.9 17,799.6 16,548.3 16,119 15,983 - (2010) - (2009) -(2008) -(2007) -(2006)

Interbank interest rates of Vietnam

Dec 7, 2011 Term Over Night 1 Weeks 2 Weeks 1 Months 3 Months 6 Months 12 Months VNIBOR 13.89 13.10 13.14 16.10 13.26 14.34 20.40 Volume(billion VND) 15.539 6.447 2.316 5.092 1.727 2.103 1

Discount rate of Vietnam

In 2003 3% 2005 3.5% - 5 % 2006 2008- 5%- 9%- 7.5% 2009- 7.5%- 6%

2010- 7% 2011- 12%-13%

CURRENT BASE RATE 9% Refinance rate 15%

IMPORTS AND EXPORT Exports - partners: US 20%, Japan 10.7%, China 9.8%, South Korea 4.3% (2010 est.) Imports: $79.95 billion (2010 est.) country comparison to the world: 36 $65.4 billion (2009 est.)

Current status of imports and exports

Vietnam Import - Export Highlights in year 2010 by the report from GSO Vietnam | 04/1/2011 This years export turnover is estimated reaching USD 71.6 billion, increasing by 25.5% against 2009, of which the domestic economic sector gains USD 32.8 billion, up by 22.7%; the FDI sector (including crud oil): USD 38.8 billion up by 27.8%. If crude oil is excluded, the FDI sectors export turnover is USD 33.9 billion up by 40.1% against 2009. Generally, the exportation of goods this year has had many advantages since unit prices of many items in the world market increased, of which prices for cassava and cassava products increased by 90.7%; for rubber by 81%; for pepper by 39.7%; for cashew nut by 22.4%; for coal by 52.9%; for crude oil by 33.7%. If the factor of price rise is excluded, 2010 export turnover is estimated reaching USD 64.5 billion, up by13.4% against 2009.

Change in import- export (fluctuation)

There is a change in the export turnover structure this year for some groups of commodities as compared with last year, of which the group of light industrial and handicraft goods increases by 46% from 42.8%; other groups decrease: heavy industrial and mineral goods from 29.4% to 27.2%; sea food from 7.4% to 6.9%; gold and gold products from 4.6% to 4%.

Export highlights

Vietnam Import in 2010

CURRENT ACCOUNT BALANCE US$

The current account balance shows a decreasing graph which shows a negative indicator.

REPORT SUMMARY

FDI INFLOW 4.5 bn$

Vietnams economic freedom score is 51.6 making its economy the 139th freest in the 2011 and Its score is 1.8 points better than last year, mainly reflecting higher scores in monetary freedom and business freedom. Vietnam is ranked 30th out of 41 countries in the AsiaPacific region, and its overall score is lower than the world and regional averages. Capitalizing on its gradual integration into the global trade and investment system, Vietnam has been transforming itself into a more market-oriented economy. Reforms have included partial privatization of state-owned enterprises, liberalization of the trade regime, and increasing recognition of private property rights. Despite the challenging global economic environment, the economy has registered annual growth rates averaging about 7 percent over the past five years. Vietnams overall economic freedom, however, is limited by several key institutional factors. State owned-enterprises still account for about 40 percent of GDP, hampering the emergence of a more dynamic private sector.

Business freedom
Vietnams pursuit of more comprehensive business reform has progressed in recent years. Administrative procedures have been streamlined, and the regulatory framework for smaller businesses has been improved.

Trade freedom-NO change Vietnams weighted average tariff rate was 10.6 percent in 2009. The government has made progress in liberalizing its trade regime since joining the World Trade Organization in 2009, but some import bans and restrictions, services market access barriers, import licensing requirements, non-transparent regulations, state trade in some commodities, and weak enforcement of intellectual property rights, corruption, and customs.

Fiscal freedom Vietnam implemented tax reforms in January 2009. The top income tax rate is now 35 percent, and the top corporate tax rate is 25 percent. Oil and gas are subject to a separate taxation scheme with rates ranging from 32 percent to 50 percent. No taxes are levied at the state or local levels. Other taxes include a value-added tax (VAT), an inheritance tax, and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 23.6 percent.

Government spending In the most recent year, total government expenditures, including consumption and transfer payments, dipped slightly to 28.8 percent of GDP. The global crisis exposed some structural vulnerabilities and forced authorities to reconsider their budget plan to hold down the deficit. Progress in the privatization or restructuring of state-owned enterprises is needed to help increase fiscal stability.

Monetary freedom
High, averaging 10.9 percent between 2007 and 2009. The government influences prices through regulation, subsidies, state-owned enterprises, banks, and utilities. Fifteen points were deducted from Vietnams monetary freedom score to account for measures that distort domestic prices. Inflation has been

Investment freedom
Foreign investment in many sectors of the economy is either prohibited or requires government approval. Deterrents to investment include unwieldy bureaucracy, non-transparent regulations, corruption, and an unreliable and cumbersome legal system. Residents and non-residents may hold foreign exchange accounts, subject to restrictions and government approvals. Payments and transfers are subject to restrictions. Most transactions in money market and capital instruments, derivatives, commercial credits, and direct investments require government approval. All land is owned by the state.

Bibliographies.

WWW.STATEGOVT.ORG WWW.VIETNAM.ORG
http://www.state.gov/r/pa/ei/bgn/4130.htm http://www.imf.org/external/index.htm http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/VIETNAMEXTN /0,,menuPK:387571~pagePK:141159~piPK:141110~theSitePK:387565,00.html http://en.wikipedia.org/wiki/Vietnam http://www.state.gov/r/pa/ei/bgn/4130.htm