Part 885

Judicial branch: Supreme People's Court, chief justice is elected for a five-year term by the National Assembly on the recommendation of the president

Political parties and leaders: only party - Communist Party of Vietnam (CPV), DO MUOI, general secretary

International organization participation: ACCT, AsDB, ASEAN, CCC, ESCAP, FAO, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM (observer), ISO, ITU, Mekong Group, NAM, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WToO, WTrO (applicant)

Diplomatic representation in the US: chief of mission : Ambassador Le Van BANG chancery: 1233 20th Street NW, Washington, DC 20036, Suite 501 telephone: (202) 861-0737 FAX: (202) 861-0917

Diplomatic representation from the US: chief of mission: Ambassador Douglas "Pete" Peterson embassy : 7 Lang Ha Road, Ba Dinh District, Hanoi mailing address: PSC 461, Box 400, FPO AP 96521-0002 telephone: (4) 8431500 FAX: (4) 8350484 or 8431510

Flag description: red with a large yellow five-pointed star in the center

Economy

Economy - overview: Vietnam is a poor, densely populated country that 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. Substantial progress has been achieved over the past 10 years in moving forward from an extremely low starting point. Economic growth continued at a strong pace during 1996 with industrial output rising by 14% and real GDP expanding by 9.4%. Foreign direct investment rose to an estimated $2.3 billion for the year, up by about 30% from 1995. These positive numbers, however, masked some major difficulties that are emerging in economic performance. Many domestic industries, including coal, cement, steel, and paper, reported large stockpiles of inventory and tough competition from more efficient foreign producers. Vietnam's trade deficit widened to $4 billion in 1996, up over 80% from a year ago. While disbursements of aid and foreign direct investment have risen, they are not large enough to finance the rapid increase in imports and it is widely believed that Vietnam may be using short-term trade credits to bridge the gap - a risky strategy that could result in a foreign exchange crunch during 1997. Meanwhile, Vietnamese authorities continue to move very slowly toward implementing the structural reforms needed to revitalize the economy and produce more competitive, export-driven industries. Privatization of state enterprises remains bogged down in political controversy, while the country's dynamic private sector is denied both financing and access to markets. Reform of the banking sector is proceeding slowly, raising concerns that the country will be unable to tap sufficient domestic savings to maintain current high levels of growth. Administrative and legal barriers are also causing costly delays for foreign investors and are raising similar doubts about Vietnam's ability to maintain the inflow of foreign capital. Ideological bias in favor of state intervention and control of the economy is slowing progress toward a more liberalized investment environment.

GDP: purchasing power parity - $108.7 billion (1996 est.)

GDP - real growth rate: 9.4% (1996 est.)

GDP - per capita: purchasing power parity - $1,470 (1996 est.)

GDP - composition by sector: agriculture: 28% industry: 28% services: 44% (1996 est.)

Inflation rate - consumer price index: 4.5% (1996)

Labor force: total: 32.7 million by occupation: agriculture 65%, industry and services 35% (1990 est.)

Unemployment rate: 25% (1995 est.)

Budget: revenues: $4.67 billion expenditures: $5 billion, including capital expenditures of $1.36 billion (1995 est.)

Industries: food processing, garments, shoes, machine building, mining, cement, chemical fertilizer, glass, tires, oil

Industrial production growth rate: 14% (1996 est.)

Electricity - capacity: 5.32 million kW (1994)

Electricity - production: 11.78 billion kWh (1994)

Electricity - consumption per capita: 154 kWh (1995 est.)

Agriculture - products: paddy rice, corn, potatoes, rubber, soybeans, coffee, tea, bananas; poultry, pigs; fish

Exports: total value : $7.1 billion (f.o.b., 1996 est.) commodities: crude oil, rice, marine products, coffee, rubber, tea, garments, shoes partners: Japan, Singapore, Taiwan, Hong Kong, France, South Korea

Imports: total value: $11.1 billion (f.o.b., 1996 est.) commodities: petroleum products, machinery and equipment, steel products, fertilizer, raw cotton, grain, cement, motorcycles partners: Singapore, South Korea, Japan, France, Hong Kong, Taiwan

Debt - external: $7.3 billion Western countries; $4.5 billion CEMA debts primarily to Russia; $9 billion to $18 billion nonconvertible debt (former CEMA, Iraq, Iran)

Economic aid: recipient: ODA, $NA note: $2.4 billion in credits and grants pledged by international donors for 1997

Currency: 1 new dong (D) = 100 xu

Exchange rates: new dong (D) per US$1 - 11,100 (December 1996), 11,193 (1995 average), 11,000 (October 1994), 10,800 (November 1993), 8,100 (July 1991)