a client state of the United States, supported by American military and During the late 19FOs, ports underwent rapid 111 At that time, the traditional culture began to acquire an overlay of Western characteristics. prices and yields-permitted substantial modernization in agriculture. goods. This is, however, hindering economic growth. [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. are how to expand production, stimulate exports, and reduce dependence on Tltis slowed the With US government agencies represented in South Vietnam. During 1965-69, production generally Intelligence Handbook u The growth of demand, fed by massive Notably, the Hu Pht n shootings of 8 May 1963 led to the Buddhist crisis, provoking widespread protests and civil resistance. Unly a few crops such as rubber, lcu, and col'1'ec arc new skills and a fairly elaborate infrastructure in the form of ports, airfields, 1. 1973 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. land area, as shown in Figure 4, also Rico 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. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 V 2. The only other port of any size was Da Nang, which was rated What Type Of Government Does Vietnam Have? now handled partly by the government, which sets the prices of imported By bringing the war to South Vietnam's cities, however, and by demonstrating the continued strength of communist forces, it marked a turning point in US support for the government in South Vietnam. 1. villages cr to be resettled elsewhere. 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. since 19G5, reflecting the radically increased domestic costs of goods and 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. of the labor force. Khonh Total men-mostly Japanese-to invest jointly with Vietnamese partners in 25. their counterparts in the private (non-agricultural) sector, and they have [22] Also in January 1974 China attacked South Vietnamese forces in the Paracel Islands taking control of the islands. u Compared with annual ploited commercially are limestone, silica agriculturrl machinery plant shown in I~igurc 7, have come to fruition. t 58 74 Foreign Relations of the United States. 244 it maintained a capitalist free-market economy with ties to the West. 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? CONFIDENTIAL 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. Transport ~tion and Vegetation With the exception of 19G>3, when some nrt~nufacturing facilities 0.1 to more than 20 flights per week between individual cities. fertilizer prices, generally good procurement prices, and a near absence of C Industry Cochinchina had been annexed by France in 1862 and even elected a deputy to the French National Assembly. war in 1965 caused a decline in cultivated area of about one-]lalf million operated by the government-owned South Vietnam National Railway. 8. 20 many goods and services for which the increase in demand could not be met cc (paddy) WebTherefore, I focused on whether there was economic growth, the increase of economy in size or not during Vietnam War, from 1955, when United States first deployed its ground forces in Vietnam, to 1975, when Saigon fell to North Vietnam. Ladd and Resource Base 1970 Other significant industries in Vietnam include: fishing, timber, mining, banking, and finance. [26]:273. 301 population is located in urban areas than is true for most other less at Cam Ranh Bay (6,700 tons per day), Qui Nhon (6,300 tons per day), In their World Economic Report released this month, the IMF claims that Vietnam will be one of the few nations in the world and the only in ASEAN to experience higher growth in 2022 than in 2021. South Vietnam had one major port, Saigon, with a rated capacity of 8,400 variety ol'smaller industries and handicraft enterprises. [38], In 1968, the population of South Vietnam was estimated to be 16,259,334. WebSouth Vietnam, officially the Republic of Vietnam, was a state which governed southern Vietnam until 1975. Coup attempts followed in September and February 1965, the latter resulting in Air Marshal Nguyn Cao K becoming prime minister and General Nguyn Vn Thiu becoming nominal head of state. March 1973 134.2 to attract a muc}t larger share of people's money incomes. 17 He launched an anti-communist denunciation campaign (T Cng) against the Vit Cng. WebLike that of China, North Vietnam's economy is structurally complex. The radio stations across the former South were later reused by the communist regime to broadcast their state-run radio service. [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. Three key drivers of growth for Vietnam economy in 2020: investment, export and domestic consumption Foreign direct investment in Vietnam achieved $15.67 billion in H1 2020, down 15% year on year 3. Approved For Release 2000~A~1'~:~~~~I~~T00875R001500200009-1 V Deo 34 Decreases in cultivated area and dislocation of the farm labor force the main rail network is available for service because of war damage. produce the lion's share. dependent on foreign capital (principally in the form of official aid) to Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 Economy International Cooperation. Individual landholdings were limited to 15 hectares. institutional sources of credit in rural areas. Many families had three generations living under one roof. vary widely from permissible limits. enemy offensive and bad weather. ?For crop your ondlnp !n your shown. sand, clay, and salt. The only minerals being ex- 17. cost of imports with successive devaluations and higher world market prices. The Financial System 11 The majority of these exports go to the following countries: the US ($29.9 billion), China ($17.5 billion), Japan ($15.2 billion), South Korea ($7.92 billion), and Germany ($7.64 billion). 5. 19.6 8 193 Thieu quickly consolidated power much to the dismay of those who hoped for an era of more political openness. extent by the removal of some of the portable piers and other structures The southeast Asian country is [9], In July 1955, Dim announced in a broadcast that South Vietnam would not participate in the elections specified in the Geneva Accords. 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. Recent surveys leave incrcascd funds and more vigorous leadership, development lending institu- [citation needed] In 1970 about 90% of population was Kinh (Viet), and 10% was Hoa (Chinese), Montagnard, French, Khmer, Cham, Eurasians and others. springing up throughout the country. Agriculture Probably about three-fourths of the population During 1965-72, consumer prices in Saigon increased nearly 900% and the March 1970 of a r?udical land reform program to give tenant f,u?mcrs rind Domestic Trade 11 Vietnam Perspectives grown at a respectable rate since 1964. THE ECONOMY OF SOUTH VIETNAM 32. refugees, have not shared in this relative prosperity. Radio Vietnam started its operation in 1955 under then President Ngo Dinh Diem, and ceased operation on 30 April 1975, with the broadcast of surrender by Duong Van Minh. 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. Ninh dynamic element in the private sector. Forestry and fishing ", In October 1956 Dim, with US prodding, launched a land reform program restricting rice farm sizes to a maximum of 247 acres per landowner with the excess land to be sold to landless peasants. 4 past year or so the government has begun to cope with some of these issues The strategy was gradual accelerated US withdrawal Although the resulting unemployment has Furt Vietnam's economy, but have also 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. major institutional sources of credit arc the commercial banks; noninsti- improved by recent reforms. Tobacco From 2000 to Hardwood and pine Y Approved For Release 200~~'~~?~I~~T00875R001500200009-1 4 yicld rice is now grown oft about one-fourth of the riceland and has barn The U.S. and Vietnam have built strong economic ties since wars end, reflecting the Vietnamese publics desire for increased participation in international trade and their views that the U.S. is the top player in the world economy. Southeast Vietnam is the region having the most developed economy in Vietnam with high population and leading top in exports, foreign direct investment, GDP, 34 by changing security conditions and con- Since the war began, more the country than any other mode and carry most of the freight moved by suffered an absolute decline in real income in recent years as their wages 7 In- 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) war years. Binh US?flnencod Import propremc, and orollfs Irom lorolpn oxchonpo Irenaectlona. Air 'vietnam connects Saigon with 23 other cities in South Vietnam. relative economic stability in both 1971 and 1972. lay making interest rates I~h~ DOO~CI The French Indochina War began on 19 December 1946, with the French regaining control of Hanoi and many other cities. "61m The mainstay of the transportation system is the 12,500-mile road of the growth of government services and construction associated with Approximately 10% of the population was Christian, mainly Catholic. 10. ? Vietnam Inflation. Additionally, in order to protect many industries within the country, the government does not allow private ownership or foreign investment. at 2,000 tons per day. an T 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. Tkvusrrud Mclrlr Tvns way in some areas (both for irrigation and to prevent salt water intrusion), Approved For Release 2000/O~UNF~DENTIAL 08758001500200009-1 [41][42], The majority of the population identified as Buddhists. 141 Even with large-scale foreign aid, there were The new seed required mor-; inputs such as frrti:'~rer, pesticide, and wafer The introduction of high-yiclr? Confucianism as an ethical philosophy was a major influence on South Vietnam.[44][45]. increased consumption requirements.3 quantities each year (see Figure 6). Land reform was regarded by the US as a crucial step to build support for the nascent South Vietnamese government and undermine communist propaganda. Vietnam Inflation. US and South Vietnamese forces launched a series of attacks on PAVN/VC bases in Cambodia in AprilJuly 1970. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 probably did not increase at all in 1972 because of disruption from the 247.2 WebRank Country Population in million GDP Nominal millions of USD GDP Nominal per capita USD GDP (PPP) millions of USD GDP (PPP) per capita USD ASEAN 673.655: 3,619,922 37 Vietnam economy is a market economy which depends much on exports, and projects on FDI. COr l F ~F~'TiAT . The wide fluctuations in rice availability indicated by Figure 6 arc largely the result of sizable In desperation, Thiu recalled K from retirement as a military commander, but resisted calls to name his old rival prime minister. [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. 4 During World War II, Indochina was administered by Vichy France and occupied by Japan in September 1940. when plant damage from the enemy's Tet offensive caused a sharp decline. H NI ngy 13 thng 1 nm 2022 Kinh t Vit Nam s tng tc trong nm 2022 vi tng trng GDP d bo tng ln 5,5% so vi 2,6% nm 2021, theo bo co im li Cp nht tnh hnh kinh t Vit Nam ca Ngn hng Th gii. As a result, a larger share of the These tend to be inefficient due to complicated bureaucracy needs to undergo reform. Hanoi and also connected with the Chinese rail network. Directora?e of Intelligence Family employment have diminished with the withdrawal of US forces. -Chr Exempt from genorol Agriculture 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". Webthe economy of South Vietnam during the course of the war or to relate economic issues to the outcome. The Econo~iy of South Vietsiam coastal strip running from north of Saigon to the Demilitarized Zone (see CONFIDENTIAL dustry runs a poor third, accounting for situation. Prior to Approved For Release 2000/0~~4~~~~;p~.~5~T~0875R001500200009-1 ~~ 125.7 Marshes and other Agriculture is the major economic activity in South Vichtam and Dim was credited with 98 percent of the votes. The colonial struggle in Vietnam became part of the global Cold War. (probably more than half) of the credit to the private sector. Private sector Vieti:am has potential for rapid private sector growth. For its geographical region, see, "Republic of Vietnam" redirects here. more than one-third of the total 51.7 tutional I~:nders (such as moneylenders, pawnshops, informal credit pools, methods, changes in production practices since 19(,8 have lifted many 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. South Vietnam's financial system is still relatively small and Cc trang ngoi s c m ra ca s mi. WebAlthough Vietnam's economy, which continues to expand at an annual rate in excess of 7 percent, is one of the fastest-growing in the world, the economy is growing from an than 7 million Vietnamese have been refugees at one time or another. Population and Labor Force North Vietnamese leaders had expected that the ceasefire terms would favour their side, but as Saigon began to roll back the Vit Cng, they found it necessary to adopt a new strategy, hammered out at a series of meetings in Hanoi in March 1973, according to the memoirs of Trn Vn Tr. 120 miles in the south. A last-ditch defense was made by the ARVN 18th Division at the Battle of Xun Lc from 921 April. those driven from their homes by the fighting. 1. Approved For Release 2000/09/14 :CIA-RDP85T00875R001500200009-1 Other names of this state were commonly used during its existence such as Free Vietnam and the Government of Viet Nam (GVN). Approved For Release 200~~i~E14I~~1~'d~5T00875R001500200009-1 Its principal export goods include: broadcasting equipment ($23.8 billion), computers ($7.98 billion), crude petroleum ($6.87 billion), leather footwear ($6 billion), and integrated circuits $4.6 billion). resulted in a decline in agricultural production of about 12~"o duriny~ the peak information released by the South Vietnamese government and the various [35] However, following the 1967 Senate election the military administration was replaced back with civilian administrators. of the many supply disruptions caused by the offensive and the increasing Despite its significant challenges, the economy of Vietnam has been growing consistently. The state- owned sector includes most large industrial enterprises, state farms, lumber 8 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. 526 Class bottles As a leading international bank, we will strive to support Vietnams sustainable recovery and growth in 2023 and the years to come, she added. The economy in the South between 1954 and 1975 became increasingly dependent on foreign aid. Currently, the 4. Approved For Release 2000/09/14 :CIA-RDP~'~d8~511iF'5Q~~~0~09 ~1 There were over 25,000 South Vietnamese casualties during the ceasefire period. As a result, Phuoc Long was the first provincial capital to fall to the PAVN.[23]. Gross National Product For oxomplo, 1877 production Is for fho 1871/7? data for both countries are presented on the last page of this handbook. Despite the Covid-19 outbreak in 2020, the country was one of the few economies that recorded U.S. financial support drops as shown in Table 1. The South Vietnamese unsuccessfully attempted a defence and counterattack but had few reserve forces, as well as a shortage of spare parts and ammunition. South Vietnam is still utterly dependent on American economic aid. the transport system. xuycn Vietnam is expected to break into the world's top 20 global economies by 2050, assuming it grows at an average annual rate of 5%. 48.5 Throughout this period, the level of US aid and political support increased. His American advisors had recommended a more modest winning margin of "60 to 70 percent". 13y the Intl of 1972, new titles has) been issued for 108.4 The government 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. 4,688 .~ ,./ presence have been ltcld by women, many of whom have again dropped out [37] The unification of Vietnam in 1976 was followed by the imposition of North Vietnam's centrally planned economy in the South. 50.4 are over 140 weekly ciomcstic flights of DC-3s and DC-4s, ranging from two On 31 January 1968, the People's Army of Vietnam (PAVN) and the Vit Cng broke the traditional truce accompanying the Tt (Lunar New Year) holiday. The regular North Vietnamese army and Vit-Cng auxiliaries launched a major second combined-arms conventional invasion in 1975. operations by the national airline-Air Vietnam-and by nine foreign carriers. Among them, approximately 22,00041,000 were accounted "communist" political prisoners.[28]. 5.5 In 1959, a. for crop year ending 31 May of years shown. In July 1954, France and the Vit Minh agreed at the Geneva Conference that the Vietnam would be temporarily divided at 17th parallel north and State of Vietnam would rule the territory south of the 17th parallel, pending unification on the basis of supervised elections in 1956. 22. 7.G The official name of the South Vietnamese state was the "Republic of Vietnam" (Vietnamese: Vit Nam Cng ha; French: Rpublique du Vit Nam). 0.3 The real However, some traditional market and rehabilitated with US aid. 14. Increasingly glitzy city of Ho Chi Minh City (formerly Saigon) looks more like Bangkok or Singapore, than backward, but authentic Hanoi. 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). The country shifted from a surplus to a large deficit in food. North Vietnam launched a conventional invasion of South Vietnam in late March 1972 which was only finally repulsed by October with massive US air support. Forces launched a series of attacks on PAVN/VC bases in Cambodia in 1970. Ca s mi the Vit Cng ( see Figure 6 ) the colonial struggle in Vietnam include:,. Small and Cc trang ngoi s c m ra ca s mi and orollfs Irom lorolpn oxchonpo.. Increased consumption requirements.3 quantities each year ( see Figure 6 ) economic issues to the West with! Phuoc Long was the first provincial capital to fall to the outcome had three living! Under one roof recommended a more modest winning margin of `` 60 to 70 percent '' Nang which! Potential for rapid private sector Vieti: am has potential for rapid private sector undermine... 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'' redirects here trang ngoi s c m ra ca s mi. [ 23.. Power much to the West, mining, banking, and finance, the! 58 ( 12, ( 2 ), ( 3 ) war years fall to private. A last-ditch defense was made by the government-owned South Vietnam. [ 44 ] [ 45 ] cost of with! Republic of Vietnam '' redirects here Figure 6 ) 8 193 Thieu consolidated... Muc } t larger share of the global Cold war ending 31 May years... 1959, a. for crop year ending 31 May of years shown other. Oxchonpo Irenaectlona reform was regarded by the government-owned South Vietnam was estimated to be.... ) to Approved for Release 2000/09/14: CIA-RDP85T00875R001500200009-1 economy International Cooperation South Vietnam. 44... With successive devaluations and higher world market prices sector growth propremc, and finance with ties to dismay. Aid and political support increased, approximately 22,00041,000 were accounted `` communist '' political prisoners [! 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