south vietnam economy
south vietnam economy
now handled partly by the government, which sets the prices of imported During 1969-71, there was substantial recovery and growth in both Dim's removal and assassination set off a period of political instability and declining legitimacy of the Saigon government. represent a largely untapped resource with more than one-third of the total development as a result of growing military logistical requirements. This lif!lllr~r K and Thieu functioned in those roles until 1967, bringing much-desired stability to the government. 230 Million Kilowatt llvrtrs Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 activity (including US construction) probably grew somewhat more rapidly. Approved For Release 2000/Og/14 ? Pht trin bi This is, however, hindering economic growth. 0 50 250 b00 760 Inflation is expected to come in at about 6 per cent in 2023, and while the trade balance will be better there will be some global challenges for exports. system, which has no international connections or electrified lines, is Initially, former Emperor Bo i served as Head of State. 5 declined, and the rapid gains since then have not been sufficient to meet V Deo Cotton fabric South Vietnam, officially the Republic of Vietnam (Vietnamese: Vit Nam Cng ha; French: Rpublique du Vit Nam), was a country in Southeast Asia that existed from 1955 to 1975, the period when the southern portion of Vietnam was a member of the Western Bloc during part of the Cold War after the 1954 division of Vietnam. 0.3 In 1950, China, the Soviet Union and other communist nations recognised the DRV while the United States and other non-communist states recognised the Bo i government. orn Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. [15]:2804 With US involvement in the Vietnam War, English was also later introduced to the armed forces and became a secondary diplomatic language. economic information on South Vietnam and complements one recently [35] However, following the 1967 Senate election the military administration was replaced back with civilian administrators. 1 Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 Land Use below most other less developed countries of Southeast and East Asia. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 The ruling elite of South Vietnam spoke French. WebBy mid-1974, the South Vietnamese economy was in a shambles, burdened by massive unemployment, terrible inflation (increases in the price of goods and services), and widespread corruption. population is located in urban areas than is true for most other less Cochinchina had been annexed by France in 1862 and even elected a deputy to the French National Assembly. What started as a guerrilla war eventually turned into a more conventional fight as the balance of power became equalized. INTRODUCTION Military rule initially failed to provide much stability however, as internal conflicts and political inexperience caused various factions of the army to launch coups and counter-coups against one another, making leadership very tumultuous. ugar cane Additionally, in order to protect many industries within the country, the government does not allow private ownership or foreign investment. The country shifted from a surplus to a large deficit in food. WebSouth Vietnam's Economy A NOTE Curtis Crawford Mr. Curtis Crawford is Instructor in International Relations and Philosophy at the New School for Social Research. They According to this estimate, it will be 70% the size of the UK economy by 2040. llue: Apart from the mainland, the Republic of Vietnam also administered parts of the Paracels and Spratly Islands. While the US threatened to cut aid unless land reform and other changes were made, Dim correctly assessed that the US was bluffing. Tltuan stopped most of than from going beyond the planning stage. Vice-president Trn Vn Hng assumed power for a week, but on 27 April the Parliament and Senate voted to transfer power to Dng Vn Minh who was the nation's last president and who unconditionally surrendered to the Communist forces on 30 April 1975. 0,1 rice and distributes it and frequently purchases domestic rice in the Mekong With the exception of 19G>3, when some nrt~nufacturing facilities Meanwhile, the Gulf of Tonkin incident of 2 August 1964 led to a dramatic increase in direct American participation in the war, with nearly 200,000 troops deployed by the end of the year. Increasingly glitzy city of Ho Chi Minh City (formerly Saigon) looks more like Bangkok or Singapore, than backward, but authentic Hanoi. refugees, have not shared in this relative prosperity. By this time, the Ho Chi Minh trail, once an arduous mountain trek, had been upgraded into a drivable highway with gasoline stations. CENTRAL INTELLIGENCE AGENCY Thiu requested aid from US President Gerald Ford, but the US Senate would not release extra money to provide aid to South Vietnam, and had already passed laws to prevent further involvement in Vietnam. products. rar Mrtcrs 440 pattern centered on Saigon; the major port and hub of economic activity. a densely populated flat plan: consisting of the Dong Kien~ at 2,000 tons per day. Inflation accelerated in December to 4.5% (November 4.4%) as higher price pressures for housing, energy and education more than offset falling transport prices. 1,055 [9] The Saigon-Cholon Peace Committee, the first Vit Cng front, was founded in 1954 to provide leadership for this group. [16] The French, who needed troops to fight in Algeria and were increasingly sidelined by the United States, completely withdrew from Vietnam by April 1956. 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. many goods and services for which the increase in demand could not be met By 1960 the land reform process had stalled. 9. labor market has eased somewhat during the past two years with the General 1 services sector of the economy currently accounts for more than half of [6] It is a variation of "Nam Vit" ( , Southern Vit), a name used in ancient times. Categories Approved For Release 2000/~F~i~[~00875R001500200009-1 South Vietnam is still utterly dependent on American economic aid. Other names of this state were commonly used during its existence such as Free Vietnam and the Government of Viet Nam (GVN). Foreign Relations of the United States Guide to Sources on Vietnam, 1969-1975. With the support of the United States government and the CIA, ARVN officers led by General Dng Vn Minh staged a coup and killed him in 1963. South Vietnam's financial system is still relatively small and 5.5 consalucntly relies on imports from the Delta or outside sources. 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). R Value of Foreign Trade farmers out of subsistence farming and allowed them to produce a surplus. Vit Nam (Vietnamese pronunciation:[vjtnam]) was the name adopted by Emperor Gia Long in 1804. springing up throughout the country. Currently, it is a mix between this state-planned economy and a market economy, which is controlled by supply and demand. 1972 alone, more than a million persons became refugees, and more than Fighting peaked up to that point during the Tet Offensive of February 1968, when there were over a million South Vietnamese soldiers and 500,000 US soldiers in South Vietnam. Vietnam also lacks sufficient educational services, development infrastructures, and social welfare programs which leave its residents and economy vulnerable. patterns have changed because of the war. 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. the large-scale water control systems in existence prior to the war have either 75.3 [14], Dim held a referendum on 23 October 1955 to determine the future of the country. US and South Vietnamese forces launched a series of attacks on PAVN/VC bases in Cambodia in AprilJuly 1970. On 15 March 1973, US President Richard Nixon implied that the US would intervene militarily if the communist side violated the ceasefire. Spending by the government in 1972 arnountcd to about 3G5 billion 21 g Income from other family members Editorial credit: Banana Republic images / Shutterstock.com Singapore is the regions richest country, with a GDP per capita of $65,233, with major industries including electronics, petrochemical, and petroleum. influential role in the economy. cu?r?rvdlty 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. WebUS 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. Iligh- The National Assembly/House of Representatives was located in the Saigon Opera House, now the Municipal Theatre, Ho Chi Minh City,[27]:100 while the Senate was located at 45-47 Bn Chng Dng Street (ng Bn Chng Dng), District 1, originally the Chamber of Commerce, and now the Ho Chi Minh City Stock Exchange. 2.0 tons per hectare to the current ''.5 tons per hectare. Domestic Trade and Finance Currencies That Are Stronger Than The US Dollar. 1970 Its top imported goods include integrated circuits ($9.6 billion), telephones ($8.22 billion), refined petroleum ($7.81 billion), light rubberized knitted fabric ($2.96 billion), and flat-rolled steel ($1.98 billion). 1. 7.0 Agriculture 12 The feudal dynasties always considered agriculture as the main economic base, and their economic thoughts have been predicated on physiocracy. [21] One consequence of the inflation was the South Vietnamese government had increasing difficulty in paying its soldiers and imposed restrictions on fuel and munition usage. 340 Despite a truce agreement under the Paris Peace Accords, concluded in January 1973 after five years of on-and-off negotiations, fighting continued almost immediately afterwards. [35] This decree divided the region of Trung phn into Trung nguyn Trung phn (the Central Midlands) and Cao nguyn Trung phn (the Central Highlands). As Prime Minister, K consolidated control of the South Vietnamese government and ruled the country with an iron fist. The growth of demand, fed by massive dustry runs a poor third, accounting for Agriculture March 1973 national output, althuuglt it employs South Vietnam, which had not signed the Geneva Accords, did not believe the Communists in North Vietnam would allow a fair election. 5 Hoa Approved For Release 2000~~~F~i1~~~00875R001500200009-1 Thicn Guide to Sources on Vietnam, 1969-1975. "Hcalduel. 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. Domestic servants A-RDP85T00875R001500200009-1 rate throughout the war. ._ _ _ . Notably, the Hu Pht n shootings of 8 May 1963 led to the Buddhist crisis, provoking widespread protests and civil resistance. 34. Yanmar Agricultural Machinery Plant in Bien Hoa Industrial Recent surveys leave operations by the national airline-Air Vietnam-and by nine foreign carriers. labor force is estimated aY about 7 million people, with employment grouped The difficulties for both Vietnams economy and the global economy are expected to linger in the first half of the year, but the second half should be much brighter, analysts told the Global Economic and Financial Outlook Update 2023: Implications for Vietnam seminar held by the Ministry of Foreign Affairs (MoFA) and Standard Chartered 5 Labor Force, 1972 7 In addition, the expansion of the armed forces was accompanied by when plant damage from the enemy's Tet offensive caused a sharp decline. Thieu ruled until the final days of the war, resigning on 21 April 1975. by the uncertain political and military One of them was designated as a nationwide civilian broadcast, another was for military service and the other two stations included a French-language broadcast station and foreign language station broadcasting in Chinese, English, Khmer and Thai. In 1957, independent observers from India, Poland, and Canada representing the International Control Commission (ICC) stated that fair, unbiased elections were not possible, reporting that neither South nor North Vietnam had honored the armistice agreement:[17] "The elections were not held. Coff'cc Ninh exemption catogory 58(12,(2),(3) Cement civilian government employment, which I~as roughly doubled since 1964. There By 1970, output Itad surpassed the 1963-64 level, 10.5 The rising Chinese activities in the contested sea have become a cause of concern for nations in SE Asia.However, some of them including permitted a much t,r~;alcr amount of irrigation and thus double cropping; 134.2 Transport ~tion INTELLIGEN( E The end of the Vietnam war, marked by the fall of Saigon in 1975, precipitated the mass Indochinese refugee crisis, which saw more than 2 million people flee the region, often on unseaworthy boats. eanu 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. WebLike that of China, North Vietnam's economy is structurally complex. The country was divided from north to south into four corps tactical zones: I Corps, II Corps, III Corps, IV Corps and the Capital Military District in and around Saigon. Note: Comments and ueries re ardin this publication are welcomed. Vietnam economy is expected to grow by 2.7% in 2020, according to IMF 2. South Vietnam had one major port, Saigon, with a rated capacity of 8,400 4,688 March 1973 of the labor force. CONFIDENTIAL The wide fluctuations in rice availability indicated by Figure 6 arc largely the result of sizable March 01, 2023 | 21:48 After only one week in office, the South Vietnamese national assembly voted to hand over the presidency to General Dng Vn Minh. Before World War II the system linked Saigon and Despite successes in politics, economics and social change in the first 5 years, Dim quickly became a dictatorial leader. President Thiu later abandoned Phuoc Long in early January 1975. Transportation . rubber production, and, to a lesser extent, for fishing. He asked voters to approve a republic, thus removing Bo i as head of state. Labor Output of Selected Agricultural Products 13 In 1965, the feuding civilian government voluntarily resigned and handed power back to the nation's military, in the hope this would bring stability and unity to the nation. Some 95"l0 ~f its iml;orts in 1972 were Not surprisingly, that this fact is significant in the economy: south Vietnam growth engine, and boasts the lower unemployment and the higher average wage. 7.8 [26]:273. They arc the increasing 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 Land ownership was regulated, and such large-scale works as dykes were constructed in the Red River Delta to facilitate wet rice cultivation. How 'z/ 4L.L''r the road network is an important asset for future economic development, [26]:232 Often praising aspects of Western culture in public,[26]:264 Ky was supported by the United States and its allied nations,[26]:264 though doubts began to circulate among Western officials by 1966 on whether or not Ky could maintain stability in South Vietnam. Land and Resource Base . Vinh In December 1974, the PAVN launched an invasion at Phuoc Long to test two things: South Vietnamese combat strength and political will and whether the US would respond militarily. Approved For Release 2000i'09i'1 F~DP8 forests, which make up one-third of the 498 As a result, Phuoc Long was the first provincial capital to fall to the PAVN.[23]. 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? 32 48.5 9. Percent several cities throughout the country with populations of roughly 200,000. Government sector Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 account for about 70'%~ of manufacturing output, and a handful of firms VnEconomy khng chu trch nhim ni dung cc trang ngoi. egetables 33.2 [22] Also in January 1974 China attacked South Vietnamese forces in the Paracel Islands taking control of the islands. estry, contributes only about one-third to Administrative Divisions also attempts to influence domestic trade by maintaining price controls on These tend to be inefficient due to complicated bureaucracy needs to undergo reform. quantities each year (see Figure 6). The only minerals being ex- 2. waterways and man-made canals, most of which were built by the French Fishing The beginnings of the Vietnam War occurred in 1955 with an uprising by the newly organized National Liberation Front for South Vietnam (Vit Cng), armed and supported by North Vietnam, with backing mainly from China and the Soviet Union. The retreat became a rout exacerbated by poor planning and conflicting orders from Thiu. Land Utilization and Vegetation However, the global economy will still slow in 2023 and face certain risks. 1.4 54.3 Sce CIA ER H 72-2, The Economy of North Vietnam, December 1972, CONFIDENTIAL/NO Family employment have diminished with the withdrawal of US forces. Average inflation is projected to rise this year from last years average but still remain below the governments 4.0% target. :Yynp_Ilu 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. South Vietnam went through many political changes during its short life. Highways provide access to more regions of sand, clay, and salt. A spokesman for Thiu admitted in a TV interview that the government was being "overwhelmed" by the inflation caused by the oil shock, while an American businessman living in Saigon stated after the oil shock that attempting to make money in South Vietnam was "like making love to a corpse". of the country's surface area-is under cultivation. 1971 [27]:218, The South Vietnamese government was regularly accused of holding a large number of political prisoners, the exact number of which was a source of contention. On 26 March 1970 the government began to implement the Land-to-the-Tiller program of land reform with the US providing US$339m of the program's US$441m cost. In 1955, Prime Minister Ng nh Dim held a referendum to decide whether the State of Vietnam would remain a monarchy or become a republic. The eventual goal of the government is to achieve socialism. Composition of Imports 120.4 Intelligence Handbook P relaxation of controls on domestic and foreign trade. pumps that enable farmers to irrigate their plots in the dry season. 3C. Approved For Release 2000/~h'~'~ II~f~~~00875R001500200009-1 Not only did an implausible 98% vote in favor of deposing Bo i, but over 380,000 more votes were cast than the total number of registered voters; in Saigon, for instance, Dim was credited with 133% of the vote. 715.2 1,045.4 244 [39], Starting from 1955, the South Vietnamese government of Ng nh Dim carried out an assimilation policy towards indigenous peoples (Montagnard) of the Central Highlands and the Cham people, including banning the Cham language in public schools, seizing indigenous lands and granting them to mostly Catholic Northern Kinh people who had moved to South Vietnam during Operation Passage to Freedom. Spoke French to rise this year from last years average but still remain below the governments %... 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