VietnamTravel Tips

Vietnam occupies the eastern and southern part of the Indochinese peninsula in Southeast Asia, with the South China Sea along its entire coast. China is to the north and Laos and Cambodia are to the west. Long and narrow on a north-south axis, Vietnam is about twice the size of Arizona. The Mekong River delta lies in the south.

The conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by Communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the Communist North and anti-Communist South. US 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military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under Communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The country continues to experience protests from various groups - such as the Protestant Montagnard ethnic minority population of the Central Highlands and the Hoa Hao Buddhists in southern Vietnam over religious persecution. Montagnard grievances also include the loss of land to Vietnamese settlers.

The Vietnamese are descendants of nomadic Mongols from China and migrants from Indonesia. According to mythology, the first ruler of Vietnam was Hung Vuong, who founded the nation in 2879 B.C. China ruled the nation then known as Nam Viet as a vassal state from 111 B.C. until the 15th century, an era of nationalistic expansion, when Cambodians were pushed out of the southern area of what is now Vietnam.

A century later, the Portuguese were the first Europeans to enter the area. France established its influence early in the 19th century, and within 80 years it conquered the three regions into which the country was then divided—Cochin-China in the south, Annam in the central region, and Tonkin in the north.

France first unified Vietnam in 1887, when a single governor-generalship was created, followed by the first physical links between north and south—a rail and road system. Even at the beginning of World War II, however, there were internal differences among the three regions. Japan took over military bases in Vietnam in 1940, and a pro-Vichy French administration remained until 1945. Veteran Communist leader Ho Chi Minh organized an independence movement known as the Vietminh to exploit the confusion surrounding France's weakened influence in the region. At the end of the war, Ho's followers seized Hanoi and declared a short-lived republic, which ended with the arrival of French forces in 1946.

Paris proposed a unified government within the French Union under the former Annamite emperor, Bao Dai. Cochin-China and Annam accepted the proposal, and Bao Dai was proclaimed emperor of all Vietnam in 1949. Ho and the Vietminh withheld support, and the revolution in China gave them the outside help needed for a war of resistance against French and Vietnamese troops armed largely by a United States worried about cold war Communist expansion.

Vietnam is a densely-populated, developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. Substantial progress was achieved from 1986 to 1997 in moving forward from an extremely low level of development and significantly reducing poverty. Growth averaged around 9% per year from 1993 to 1997. The 1997 Asian financial crisis highlighted the problems in the Vietnamese economy and temporarily allowed opponents of reform to slow progress toward a market-oriented economy. GDP growth averaged 6.8% per year from 1997 to 2004 even against the background of the Asian financial crisis and a global recession, and growth hit 8% in 2005. Since 2001, however, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime. Vietnam's exports to the US doubled in 2002 and again in 2003. Vietnam hopes to become a member of the WTO in 2006. Among other benefits, accession would allow Vietnam to take advantage of the phase out of the Agreement on Textiles and Clothing, which eliminated quotas on textiles and clothing for WTO partners on 1 January 2005. Vietnam is working to promote job creation to keep up with the country's high population growth rate. However, high levels of inflation have prompted Vietnamese authorities to tighten monetary and fiscal policies.