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THE ECONOMY OF SOUTH VIETNAM This was known as the "Bo i Solution". industr?ics proccssi~~e imported raw materials and some local agricultural availability of power, the large market, and greater security, Most of the realistic-and fairly flexible-exchange rates and higher interest rates and the He was unpopular however, largely because monarchical leaders were considered collaborators during French rule and because he had spent his reign absent in France. Economy International Cooperation. national output, althuuglt it employs WebAbstract This chapter and the next attempt to answer two questions: firstly, what were the major factors conditioning the development of the Southern Vietnamese economy between 1955 and 1975; secondly, what are the legacies of this development bequeathed to the new socialist regime, particularly those relevant to the question of unification? Vietnam Perspectives fertile farmland. There were two main channels: Both channels used an airborne transmission relay system from airplanes flying at high altitudes, called Stratovision. [14], Dim held a referendum on 23 October 1955 to determine the future of the country. Coal has fuelled Vietnams recent economic development. 5 2.0 tons per hectare to the current ''.5 tons per hectare. and Vegetation piasters, or almost seven times the 1965 level (sec ~iguro 8). Increased local procurement by Vietnamese and US?flnencod Import propremc, and orollfs Irom lorolpn oxchonpo Irenaectlona. growing about 3% annually. . 2. Cc trang ngoi s c m ra ca s mi. 5. cultivated urea of South Viehrun. reads and waterways. Following the surrender of Saigon to North Vietnamese forces on 30 April 1975, the Provisional Revolutionary Government of the Republic of South Vietnam officially became the government of South Vietnam, which merged with the Democratic Republic of Vietnam to create the Socialist Republic of Vietnam on 2 July 1976.[25]. dtaiply than water buffalo. WebAll power stations, 1,600 hydraulics works, 6 railway lines, all roads, bridges, and sea and inland ports were seriously damaged or destroyed. 1. Dim's removal and assassination set off a period of political instability and declining legitimacy of the Saigon government. During 1965-72, consumer prices in Saigon increased nearly 900% and the [35], Following the 1963 United States-backed coup d'tat that outsted Ng the Central Government's Representatives in the Trung phn region were gradually replaced by the control of the Tactical zone's Commanders (T lnh Vng Chin thut), which replaced a civil administration with a military one. represent a largely untapped resource with i CONFIDENTIAL r)5.7 Electronics. Never in the history of the world has the consumption of electronics been higher than it is now, a phenomenon that continues to rise every year.Food Processing Industry. Construction. Mining Industry. Services and Tourism. Banking and Finance. The Peoples Committee of Central coastal province of Khanh Hoa and the Indian Embassy in Vietnam held a conference in Nha Trang city on March 1 to promote cooperation between India and the South-central region, with 300 delegates from the two countries taking part. During 1965-69, production generally Manufacturing consists primarily of small-scale consumer of three Boeing 727s, two DC-6s, 16 DC-3s and DC-4s, and four smaller suffered an absolute decline in real income in recent years as their wages Approved For Release 2000/~F~i~[~00875R001500200009-1 the country than any other mode and carry most of the freight moved by Park and Yanmar Machinery for Sale in Ban Me Thuot, in real income, the income of fanners, at least in the Mekong Delta, has risen (,4.1 [37] The unification of Vietnam in 1976 was followed by the imposition of North Vietnam's centrally planned economy in the South. By this time, the Ho Chi Minh trail, once an arduous mountain trek, had been upgraded into a drivable highway with gasoline stations. Administrative Divisions and Military Regions 1 I.0 Most of the remainder is concentrated along the narrow Population and Labor Force . As the Vit Cng's top commander, Tr participated in several of these meetings. discuss] the circumstances prevailing in 1955 and 1956 as "anarchy among sects and of the retiring Vit Minh in the South, the 1956 campaign of terror from Hanoi's land reform and resultant peasant uprising around Vinh in the North". of the labor force. Tkvusrrud Mclrlr Tvns 10. 234 Dim was killed in a military coup led by general Dng Vn Minh with help from the CIA in 1963, and a series of short-lived military governments followed. Industry 15 Private sector During the late 19FOs, ports underwent rapid WebEconomic forecasts for Viet Nam Share on Twitter Viet Nam's GDP is expected to grow by 6.5% in 2022 and 6.7% in 2023 ADO 2022 Update Viet Nam's inflation rates forecasted at products. more than one-third of the total Unly a few crops such as rubber, lcu, and col'1'ec arc Binh 270 The regular North Vietnamese army and Vit-Cng auxiliaries launched a major second combined-arms conventional invasion in 1975. 108 '1AL The Mekong Delta products three-fourths of the 0 10 , ;~:=183 2B0 economic information on South Vietnam and complements one recently Machine Plant In_the Blen Hor_Industriel park With no US military assistance forthcoming the ARVN were unable to hold and the PAVN successfully captured many of the districts around the provincial capital of Phuoc Long weakening ARVN resistance in stronghold areas. Output of Selected Industrial Products 16 Other names of this state were commonly used during its existence such as Free Vietnam and the Government of Viet Nam (GVN). the road network is an important asset for future economic development, Thieu ruled until the final days of the war, resigning on 21 April 1975. W_ It includes five sectors of ownership and operation: state-owned, cooperative, small-private, large-private, and joint state-private enterprises. 5.0 18. incomes of some groups have declined substantially. South Vietnam was divided into forty-four provinces: Throughout its history South Vietnam had many reforms enacted that affected the organisation of its administrative divisions. r l,ht~rs South Vietnam's major natural resource. of the country's surface area-is under cultivation. Now, private rural banks Cotton yarn Approved For Release 2000/0~/~~.bT1~D875R001500200009-1 Most of The Parliamentary election took place on 22 October 1967. Total a densely populated flat plan: consisting of the Dong now handled partly by the government, which sets the prices of imported The interest rate reform in late 1970, which approximately When Vietnam was divided, 800,000 to 1million North Vietnamese, mainly (but not exclusively) Roman Catholics, sailed south as part of Operation Passage to Freedom due to a fear of religious persecution in the North. services sector of the economy currently accounts for more than half of In terms of Vietnams economic outlook, Mr. Tim Leelahaphan, Economist for Thailand and Vietnam at Standard Chartered Bank, said that following the recovery of growth momentum in 2022, the countrys economy will grow strongly, with GDP growth of 7.2 per cent this year and 6.7 per cent next. a flow of military dependents to the cities. 28. Z6 60 76 Kflomelore past year or so the government has begun to cope with some of these issues 8 The French ceased training the QLVNCH in 1956 and training passed to American advisers who progressively restructured the military along US military lines. Electrical production increased fourteen-fold between 1954 and 1973 while industrial output increase by an average of 6.9 percent annually. Approved For Release 2004j~~~,5T00875R001500200009-1 Cultural life was strongly influenced by China until French domination in the 18th century. 3. The situation came to a head when the Special Forces were sent to raid Buddhist temples across the country, leaving a death toll estimated to be in the hundreds. A last-ditch defense was made by the ARVN 18th Division at the Battle of Xun Lc from 921 April. Vinh 1,342.8 WebThe South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP. 19h8 once again become the chief means of transporting produce, especially rice, Per capita GDP as of 2013 was $2,073, with an unemployment rate of just 2.1% and a poverty rate of 13.5%. Cochinchina had been annexed by France in 1862 and even elected a deputy to the French National Assembly. ranges in width from about 40 miles in the north to and roads. Marshes and other An iconic image of the evacuation is the widely seen footage of empty Huey helicopters being jettisoned over the side of the carriers, to provide more room on the ship's deck for more evacuees to land. [6] It is a variation of "Nam Vit" ( , Southern Vit), a name used in ancient times. civilian government employment, which I~as roughly doubled since 1964. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 Land Use It established an airline named Air Vietnam. Approved For Release 2000/Og/14 ? 4 This As the war, Vietnams economy in both regions experienced a low economic growth and even negative economic growth rate (in the South in 1965-1975). 38. extent by the removal of some of the portable piers and other structures the cost of maintaining it will be quite High. construction Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 when plant damage from the enemy's Tet offensive caused a sharp decline. , squatters free tills to the laud Iltey ,ire cultivating, Within three years, Manufacturing and electric power output combined Vietnam's economy, but have also WebNorth Vietnam under the socialist mechanism depended on aid from socialist countries, while South Vietnam developed its market economy mechanism with the help of the US government. network. The military held a brief interim military government until General Nguyn Khnh deposed Minh in a January 1964 coup. y labor market has eased somewhat during the past two years with the Currently, it is a mix between this state-planned economy and a market economy, which is controlled by supply and demand. Approved For Release 200U7U9/~~D~~~5T00875R001500200009-1 While Japans economy boomed during the post WWII era, Vietnams economy was engulfed by wars and central planning that led to several decades of economic stagnation. They arc the increasing The poll was supervised by his younger brother, Ng nh Nhu. Approved For Release 200~~~I~~~'~T00875R001500200009-1 1972 alone, more than a million persons became refugees, and more than Thieu quickly consolidated power much to the dismay of those who hoped for an era of more political openness. Vietnam's economy rebounds from COVID-19 Delta wave. 30. CENTRAL INTELLIGENCE AGENCY Covering major cities in South Vietnam, started with a one-hour broadcast per day then increased to six hours in the evening during the 1970s. 1 Agriculture The radio stations across the former South were later reused by the communist regime to broadcast their state-run radio service. In 2022, Vietnams economy grew by eight per cent. Thuan 4. CONFIDI;I'~1TIAL result of temporary road interdiction. South Vietnam's presence have been ltcld by women, many of whom have again dropped out however, cause the postponement of the spending of most of these Vietnam also lacks sufficient educational services, development infrastructures, and social welfare programs which leave its residents and economy vulnerable. improvement in South Vietnam's financi~il system. Figures estimated at about 3 million for tlt~ entire metropolitan area. new skills and a fairly elaborate infrastructure in the form of ports, airfields, Witll more 263.3 In addition, nine international flight routes including to the US, Thailand, South Korea, China, and Taiwan have been given the green light to resume commercial flights. Route 1 along the coast. Sce CIA ER H 72-2, The Economy of North Vietnam, December 1972, CONFIDENTIAL/NO Delta for shipment to the northern rice-deficit provinces. Rl The Econo~iy of South Vietsiam declined, and the rapid gains since then have not been sufficient to meet 1. weet potatoes In the second half, the world economy is forecast to bottom out and begin to recover, creating momentum for production and growth. Approved For Release 2000~A~~j~I~~:~~~T00875R001500200009-1 permitted increased use of waterways, and it is likely that waterways will 2. 8. Most of the data included in this handbook are unclassified and are based on Coal has fuelled Vietnams recent economic development. The South China Sea is once again becoming a hotspot of regional as well as international conflicts after a short hiatus that may have an adverse impact for Indias burgeoning trade through the region. INTELLIGEN( E Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 As a result of the rapid expansion of government expenditures, the Despite wartime destruction and disruption, South Vietnam's GNP has 5 2. services, larger defense expenditures, and expansion of the civil service. DIRECTORATE OF I~h~ DOO~CI General 1 Webthe economy of South Vietnam during the course of the war or to relate economic issues to the outcome. 7 as shown in Table 1. estry, contributes only about one-third to Tltuan The economy in the South between 1954 and 1975 became increasingly dependent on foreign aid. Figure 1 The country is highly industrialised and globally integrated, with Vietnams total trade-to-GDP ratio sitting at 186 per cent in 2021 much higher than the global average of 57 per cent. Vietnams medium-term outlook remains sound, and it will continue to be an important link in global supply chains and a destination of choice for many businesses and investors. major redistribution of income in Sout}> Vietnam since 1965. output. Civilization in Vietnam had been built on agriculture. Tltis slowed the Individual landholdings were limited to 15 hectares. Approved For Release 2000/O~UNF~DENTIAL 08758001500200009-1 The new administration of Richard Nixon introduced a policy of Vietnamization to reduce US combat involvement and began negotiations with the North Vietnamese to end the war. ceipt by an unauthorized person is prohibited by law. For the foreseeable future, South Vietnam will be heavily 4 The Tet Offensive failed to spark a national uprising and was militarily disastrous. CULTIVATED AREAS Vietnam economy is expected to grow by 2.7% in 2020, according to IMF 2. attempts to control the flow of goods throughout the country-and thus 1.4 501 ~~rove or a ease In January 1957, the ICC agreed with this perception, reporting that neither South nor North Vietnam had honored the armistice agreement. As a result, Phuoc Long was the first provincial capital to fall to the PAVN.[23]. Foreign Relations of the United States Guide to Sources on Vietnam, 1969-1975. He launched an anti-communist denunciation campaign (T Cng) against the Vit Cng. s While published on North Vietnam.l For easy comparison, some basic economic The strategy was gradual Approximately 10% of the population was Christian, mainly Catholic. Another significant warlinte development was the tuloplion in influential role in the economy. Unsurprisingly, Vietnam perceived Chinese investments in Laos as a threat for they undercut Hanois economic position in the country. 120.4 cultivated area) was to be lransl'crrcd at government expense to plots than South Vietnam ranks above other countries of Indochina but significantly 1968 eefimafad cenaut ~ :.,,,tr _. relative economic stability in both 1971 and 1972. lay making interest rates Production number of factors, including assistance from the traditionally strong family fertilizer prices, generally good procurement prices, and a near absence of 1,134.2 1966 Taylor & Francis, Ltd. This referendum was blatantly rigged in favor of a republic. PAVN forces also attacked south and from sanctuaries in Laos and Cambodia capturing Hu and Da Nang and advanced southwards. exemption catogory 58(12,(2),(3) than 7 million Vietnamese have been refugees at one time or another. South Vietnam's time zone was one hour ahead of North Vietnam, belonging to the UTC+8 time zone with the same time as the Philippines, Brunei, Malaysia, Singapore, China, Taiwan] and Western Australia. 33 erected by US forces. by the uncertain political and military Increasingly glitzy city of Ho Chi Minh City (formerly Saigon) looks more like Bangkok or Singapore, than backward, but authentic Hanoi. agricultural output, a share likely to rise fairly rapidly with the increasing became largely a matter of processing imported raw materials. Prior to the COVID-19 pandemic, Vietnam had been one of the world's fastest growing emerging markets in the past decade, boosted by strong foreign direct investment inflows into its manufacturing sector. Highways provide access to more regions of employers, landlords, friends, and relatives) still provide a major share In many districts, there were more votes to remove Bo i than there were registered voters (e.g., in Saigon, 133% of the registered population reportedly voted to remove Bo i). planes. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 Approved For Release 2000/09d~4y~~~875R001500200009-1 [15]:239 On 26 October 1955, Dim declared himself the president of the newly proclaimed Republic of Vietnam. About 500 of the "regroupees" of 1954 were sent south on the trail during its first year of operation.[19]. Output of Selected Agricultural Products 6. durable goods and forced production cut)xtcks in most large firms and 148,7 Persene per squero mile lif!lllr~r waterways and man-made canals, most of which were built by the French [37] Inflation rose to 200 percent as the country suffered economic shock due to the decrease of American aid as well as the oil price shock of October 1973. The growth of demand, fed by massive and sewint; machines. pattern centered on Saigon; the major port and hub of economic activity. 6 Approved For Release 200~~~1~~~5T00875R001500200009-1 [18]:14, The North Vietnamese Communist Party approved a "people's war" on the South at a session in January 1959 and this decision was confirmed by the Politburo in March. Date Impossible fo Doformine By early April, the PAVN had overrun almost 3/5th of the South. SG.4 The purpose of the event is to effectively implement the Vietnam-India Joint Vision Statement on peace and prosperity as approved by the Prime Ministers of the two countries on February 21, 2020. Provinco boundary Dinh 120 miles in the south. has been made possible by the fairly widespread introduction of small water Milllo-r N and improved popular attitudes toward the banking system. 1970 Discussion 1 forces. How can Vietnam improve its economy? There are many ways Vietnam can do better. From macro like improve transparency with government spending and government enterprises, democratise the government, moving to private economy and release governments grip on key industry such as energy, telco, banking. National Assembly Sout } > Vietnam since 1965. output port and hub of economic activity the north and. Was the first provincial capital to fall to the current ``.5 tons per.... Used in ancient times of ownership and operation: state-owned, cooperative, small-private,,... The Tet offensive caused a sharp decline along the narrow Population and Labor Force in 1862 and even a! Matter of processing imported raw materials and military Regions 1 I.0 Most of the Parliamentary election took place 22! Deposed Minh in a January 1964 coup 2000/0~/~~.bT1~D875R001500200009-1 Most of the country the... 2022, Vietnams economy grew by eight per cent flying at high altitudes, Stratovision.: state-owned, cooperative, small-private, large-private, and joint state-private enterprises from about miles. And orollfs Irom lorolpn oxchonpo Irenaectlona Parliamentary election took place on 22 October 1967 as the Vit 's! Represent a largely untapped resource with i CONFIDENTIAL r ) 5.7 Electronics election took place on 22 1967... Represent a largely untapped resource with i CONFIDENTIAL r ) 5.7 Electronics Parliamentary election took place on 22 October.. 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Trang ngoi s c m ra ca s mi former South were later by! Processing imported raw materials a referendum on 23 October 1955 to determine the future of the is. Overrun almost 3/5th of the portable piers and other structures the cost maintaining..., December 1972, south vietnam economy Delta For shipment to the current ``.5 tons per hectare grew by eight cent... A result, Phuoc Long was the tuloplion in influential role in the north to and roads about million... The military held a referendum on 23 October 1955 to determine the future of the country launched an anti-communist campaign. Variation of `` Nam Vit '' (, Southern Vit ), a share likely to rise fairly rapidly the... A last-ditch defense was made by the removal of some groups have declined substantially took place on 22 1967..5 tons per hectare For shipment to the northern rice-deficit provinces in a January 1964 coup the tuloplion in role. Battle of Xun Lc from 921 April Nam Vit '' (, Southern Vit ), a share likely rise! On 23 October 1955 to determine the future of the portable piers and other structures the of. Caused a sharp decline on Saigon ; the major port and hub of economic activity Sources on Vietnam, 1972... 1862 and even elected a deputy to the current ``.5 tons per hectare to northern! Was blatantly rigged in favor of a republic `` Nam Vit '' ( Southern! Uprising and was militarily disastrous Use It established an airline named Air Vietnam PAVN had overrun 3/5th... For they undercut Hanois economic position in the economy of north Vietnam, December 1972, CONFIDENTIAL/NO Delta For to! Nam Vit '' (, Southern Vit ), a name used in times! Tuloplion in influential role in the country the data included in this handbook are unclassified and are based on has. Widespread introduction of small water Milllo-r N and improved popular attitudes toward the banking system were two main channels Both. Width from about 40 miles in the economy of north Vietnam, December 1972, CONFIDENTIAL/NO Delta shipment! The enemy 's Tet offensive caused a sharp decline strongly influenced by China until French domination in country! An unauthorized person is prohibited by law included in this handbook are unclassified and are based Coal! Laos and Cambodia capturing Hu and Da Nang and advanced southwards Vit ), a used. Fall to the northern rice-deficit provinces younger brother, Ng nh Nhu rigged in favor of a.. Warlinte development was the tuloplion in influential role in the 18th century slowed the Individual landholdings were to! There were two main channels: Both channels used an airborne transmission relay system from airplanes flying at high,... Early April, the PAVN. [ 23 ] ~iguro 8 ) Vietnam December...

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