ECONOMY
Industry:
Most heavy and medium industry is concentrated in the north, including the state-owned coal, tin, chrome, and other mining enterprises; an engineering works at Hanoi; power stations; and modern tobacco, tea, and canning factories. The industrial sector in the south is characterized by light industry and consumer goods industry, including pharmaceuticals, textiles, and food processing, although there are some large utilities and cement works.
The leather and footwear sector earned about $1.55 billion in 2001 and an estimated $1.9 bi8l. in 2002. Vietnam is the eighth-largest exporter of leather and footwear.
Vietnam's rubber sector has been growing at about 15% a year with an output of 300,000 tons of dried latex. Plans are to invest about $100 million in the period 2001 to 2010 in building/expanding 11 latex plants. Construction has been one of the driving forces of economy, growing at 15% a year. The construction sector consists of about 3,500 companies, including 270 foreign invested enterprises worth more than $3.5.
Vietnam has a large-scale wood processing industry with a nation-wide network of 760 state-managed wood processing units. There are also over 200 local enterprises, 53 joint ventures and close to 1200 small scale production units. In 2001 the market for metal-working machinery and equipment was $45 million of which 90% was imported.
Agriculture:
Vietnam is a major global food exporter and is the world's third leading exporter of rice, competing actively with Thailand and the United States in this global market. Between 1988 and 1997, total food production in Vietnam increased 50 percent.
In recent years Vietnam has become a major exporter of both groundnuts and cashew nuts. The export of cashew nuts in 1997 brought in US$125 million. Also, Vietnam has become Asia's second largest producer of robusta coffee, and coffee is now Vietnam's second leading agricultural export. Other important export crops are rubber and tea.
Services and tourism:
In 2004 services accounted for 38.2 percent of gross domestic product (GDP). During 1994–2004, GDP attributable to the services sector grew at an average annual rate of 6.0 percent.
In 2004 Vietnam received 2.9 million international arrivals, up from 2.4 million the previous year. The annual increase represented a strong rebound from a slight decline in 2003 attributable to the severe acute respiratory syndrome (SARS) epidemic in Asia. From 1999 to 2004, tourism rose by 63 percent.
Most of the visitors in 2004 (27 percent) came from China, with 8–9 percent each coming from the United States, Japan, and South Korea. The Vietnam National Administration of Tourism is following a long-term plan to diversify the tourism industry, which brings needed foreign exchange into the country.