Overview

Vietnam is situated in the eastern part of the Indochina peninsular. Vietnam is a strip of land shaped like the letter "S". China borders it to the north, Laos and Cambodia to the west, the Eastern Sea to the east and the Pacific Ocean to the east and South. In term of land mass, Vietnam occupies a territory of approximately 331,690 sq km. Vietnam's major agricultural products include paddy rice, coffee, rubber, cottons, tea, pepper, cashew, sugar cane, peanuts, fruits and vegetables. Its major industries includes food processing, garments, shoes, machine building, mining coal, steel, cement, chemical, fertilizer, oil and paper.

Vietnam ranks as the fourteenth most populous country in the world with an estimated population of 87 million in July, 2009. The principal cities are Hanoi, the capital and Ho Chi Minh City. In 2007, 28.0% of Vietnam’s population resided in urban areas. In recent years, Vietnam has been undergoing rapid urbanization with the urban population increasing at a compound annual growth rate of 3.1% between 2005 and 2010 compared to an increase in the rural population of 0.6% over the same period.

Government structure

On July 2, 1976, the National Assembly of reunified Vietnam changed the country’s name to the Socialist Republic of Vietnam. The communist party of Vietnam, founded in 1930, is the ruling party. In April 2006, the communist party held its tenth national congress to, among other things, elects a new central committee headed by the general secretary of the party. Mr. Nong Duc Manh was re-elected to this post for a second term.

The four levels of government are the central, provincial, district, and communal levels. Under the constitution enacted by the national assembly in 1992 and amended in 2001, the national assembly is the highest organ of the state, while the government is the executive organ of the national assembly and the highest organ of State administration. Other central level institutions established under the constitution include the Presidency, the Supreme People’s court and the Supreme people’s Procuracy. There are currently 59 provinces and 5 centrally run municipalities.

International relations and integration into the world economy

Vietnam maintains diplomatic relations with over 150 countries and with various international institutions. Vietnam has been a member of the United Nations since 1977 and is a member of many other international organizations, including the International Bank for Reconstruction and Development, the International Monetary Fund, and the ADB. It is a member of the Association of Southeast Asian nations and the Asia-Pacific Economic Cooperation Forum, and is also a party to the ASEAN Free Trade Area. In 1995, Vietnam entered into the General Agreement on Economic Cooperation with the European Union.

In 2000, Vietnam and the United States entered into a Bilateral Trade Agreement (USBTA) and the United States currently ranks as Vietnam’s largest trading partner based on the value of imports and exports in 2005. The USBTA is valid for three-year period, with automatic renewal unless some of the parties notify the other of its intent to terminate the agreement at least 30 days before the end of a term. Vietnam’s obligations under the USBTA require it to liberalize trade and investment, accede to international trade agreements and to implement general principles consistent with WTO practices. Vietnam and the US signed a bilateral market access agreement on May 31, 2006 as a result of which legislation was introduced in the US Congress to grant Vietnam permanent normal trade relation status. Until such status is granted, Vietnam will continue to have conditional normal trade relations status, requiring an annual US presidential waiver relating to Vietnam’s emigration policy. In January 2008, Vietnam assumed a non permanent seat on a UN Security council for the 2008-2009 term