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Official Name: Socialist Republic of Viet Nam
Land Area: 330,000 sq kilometres
Population: 85.26 million (2008 estimate)
Capital City: Ha Noi
Religion: Predominantly Buddhist (80-85%) and Catholic (10%)
Language: Vietnamese
Currency: Vietnamese Dong
Exchange Rate NZ$1: VND12, 697 (as at February 2008)
Political system: One-party state
National government: Appointed by the Communist Party of Viet Nam
National legislature: Unicameral 498 member National Assembly
Last election: May 2002
Next election: due 2007
Head of State: President Nguyen Minh Triet
Head of Government: Prime Minister Nguyen Tan Dung
Key Ministers:
Deputy Prime Ministers - Nguyen Sinh Hung,
Truong Vinh Trong,
Pham Gia Khiem,
Hoang Trung Hai,
Nguyen Thien Nhan
Foreign Affairs - Pham Gia Khiem
Trade - Vu Huy Hoang
Defence - Phung Quang Thanh
Planning and Investment - Vo Hong Phuc
Agriculture and Rural Development - Cao Duc Phat
Education - Nguyen Thien Nhan
GDP per capita: US$723 (2007 estimate)
GDP breakdown: Agriculture Industry Services
20.0% 42.0% 38.0%
Real GDP growth: 8.3% (2007 estimate: % change YOY)
Exports (fob): US$47.5 billion (estimate for 2007)
Imports (fob): US$52.2 billion (estimate for 2007)
Main exports: Crude oil,
Textiles and garments,
Footwear,
Fisheries products,
Coffee,
Rice
Current account: US-$2,199 million (2007 estimate)
Inflation 7.3 % (2007)
Gross external debt US$14 billion (2007 estimate)
NZ Exports (FOB): NZ$363,686,000 (year ending Dec 2007)
Main Exports: Milk powder, timber, butter, malt extract, waste and scrap of paper and paperboard, fibreboard, raw hides and skins, meat and fish meal
NZ Imports (CIF): NZ$134,972,000 (year ending Dec 2007)
Main Imports: Furniture and parts, engines and motors, nuts, footwear, seats, crustaceans, coffee, electric transformers, computers
Services: Trade Education, consultancy, construction, software
Viet Nam has made great progress since it engaged in 1987 on a course of market reform known as doi moi, or renovation. The reforms achieved impressive results, including growth rates that for a time were amongst the highest in Asia and the reduction of poverty from more than 70% of the population to 35%. Today Viet Nam's growth rates remain among the highest in the region (second only to China). Viet Nam nevertheless remains one of the poorest countries in the region with enormous development and infrastructure needs. Its membership of ASEAN in 1995 and of APEC in 1998 have done much to restore Viet Nam's international credibility, but are also serving to accelerate the process of regional economic integration with all the difficult restructuring this involves.
Slowly but surely, Viet Nam is making the transition from a centrally controlled command economy to one which is more outward looking, more efficient, and more competitive. Viet Nam’s population and resource base is considerable. Successful development will depend on its ability to meet both the requirements of a free market economy and to continue to invest heavily in the country’s valuable human resources.
Vietnamese history dates back more than 4,000 years to when the ancient Vietnamese people founded their first nation under the name “Van Lang”.
The Vietnamese see their more recent history as a long, continuous struggle for freedom and independence. The Chinese ruled the country for nearly a thousand years from 111BC to 939AD. It was subsequently occupied by France for almost 100 years from 1859 to 1945, and then briefly by Japan.
The Socialist Republic of Viet Nam emerged as a unified state in January 1976 following the partition of the country into North and South along the 17th parallel in 1954, which led to a long and bitter struggle in which many of the world’s major powers became embroiled. The Vietnamese still refer to it as the American War, rather than a civil war. The 1973 Paris Peace Agreement paved the way for US troop withdrawals. The Thieu regime in the South lasted only another two years until March 1975.
This was not to be the end of Viet Nam’s wars. It was soon engaged in conflict with the Khmer Rouge in Cambodia, and with the Chinese on its northern border. Peace was not fully restored until the mid 1980s.
In 1977 Viet Nam became an official member of the United Nations.
The Communist Party of Viet Nam has held power since unification. The decisions of its leadership constitute national policy that the Executive (Central Committee) and the Legislature (National Assembly) are required to follow. At provincial and city level, People’s Committees have considerable influence as their approval is a prerequisite for all development projects and expenditure in their jurisdiction.
The official Party policy is “democratisation within a one party state”. The powers of the Communist Party were modified in the revised Constitution of 1992, which required Party organisations to act within the law, and gave increased authority to the Prime Minister and the National Assembly.
Day-to-day policy advice comes from the Party Secretariat (made up of some 14 Politburo and 160 Central Committee members). The Central Committee considers key policy issues several times per year, and five-yearly Party Congresses ratify major policy changes. The 10th Party Congress, held in April 2006, led to significant changes in the Party leadership, although Nong Duc Manh retained the key position of General Secretary. The National Assembly’s June 2006 session subsequently confirmed a new Government leadership, including new President, Prime Minister and key Cabinet ministers. The new Government includes some relatively younger ministers and is considered a first step towards installing a new generation of leaders.
Viet Nam’s human rights record is gradually improving. Government monitoring and control of all facets of the political, social, economic, and religious lives of the people is reducing in some areas but is still intrusive and at times erratic. Satellite television and the Internet are now available, though internet use is monitored. Religious and media freedoms are closely controlled, and political pluralism has yet to be accepted.
A renewed period of economic reform began in 1986 with the goals of improving living standards and encouraging foreign investment through more open economic policies. The initial steps of economic reform (“doi moi”) had been gradual. But during the 1990s, enhanced institutional support and steadily improving infrastructure made Viet Nam’s growth rate one of the highest in the region. This growth brought impressive gains in incomes and in the quality of life of the Vietnamese people.
The investment-led growth of the mid-1990s began to tail off even before the Asian financial crisis dealt a further blow. Investor expectations were not being met, and many projects suffered from excessive bureaucratic interference. However, the cautious economic policies of the government enabled the economy to avoid the serious balance of payments, fiscal, and banking crises common elsewhere in the region. Since 2000, GDP growth rates have continued to track strongly, reaching 8.3% in 2007.
The government has started to heed the calls of donor governments and investors for greater transparency, reform of the SOE, financial and trading sectors, and improved public sector governance. Implementation has been slow, however, and Viet Nam retains a strong commitment to state enterprise and outmoded financial and trade regimes. Reforms and restructuring have reduced the numbers of state owned firms to around 6,000, but despite preferential access to credit through the state banking sector, these enterprises are not growing strongly enough to absorb the growing numbers of unemployed. Viet Nam’s growth over the medium term depends on whether it becomes a truly multi-sector economy in which private businesses are able to grow and compete in an undistorted environment with the same freedoms as state enterprises.
From the early 1990s Viet Nam moved quickly to restore relations with the international community. 1995 was a historic year for Viet Nam, with its entry into the Association of South East Asian Nations (ASEAN), increasing integration into the global economy (especially a framework agreement with the European Union), and the establishment of formal relations with United States.
China will continue to be Viet Nam’s single most important bilateral relationship. The two countries regularly exchange high-level visits and are currently building a closer relationship. A treaty delineating the land border between the two countries was concluded in December 1999, thus resolving a longstanding bilateral dispute. Other tensions, for example over the contested territory of the Spratley Islands in the South China Sea, have been prevented from spilling over into broader high-level relations.
Membership of ASEAN is central to Viet Nam’s economic development and international economic integration strategies. Around 30% of Viet Nam’s trade is with ASEAN countries. Under the ASEAN Free Trade Area (AFTA) and the ASEAN Investment Area this co-operation is expected to continue to grow. Viet Nam is an increasingly active member of ASEAN, having hosted both the Sixth ASEAN Summit in 1998, the ASEAN Regional Forum (ARF) Post Ministerial Conference in 2001, and successfully hosted the fifth Asia Europe Meeting (ASEM) in 2004. In 1998 Viet Nam was admitted to full membership of APEC, and hosted this Summit in November 2006. Viet Nam has formally acceded to the WTO (January 2007) and will undertake the role of non-permanent member of the United Nations Security Council for the 2008-2009 year.
Diplomatic relations with the Socialist Republic of Viet Nam were established in 1975, but were subsequently fairly inactive for almost a decade following Viet Nam’s invasion and occupation of Cambodia in 1978. In 1995 New Zealand opened an Embassy in Ha Noi, and Trade New Zealand (now New Zealand Trade and Enterprise) established a commercial office (and Consulate General) in Ho Chi Minh City.
In recent years official and business contacts have grown significantly, assisted by rapid economic growth in Viet Nam and its deepening integration into the region. Relations have also been bolstered significantly by the considerable number of senior officials who have studied English in New Zealand or visited on study tours. The visit by Prime Minister Helen Clark to Viet Nam in October 2003 consolidated these links and moved the Viet Nam-New Zealand relationship on to a higher plane.
2005 marked the anniversary of 30 years of New Zealand/Viet Nam diplomatic relations. A highlight that year was the visit of Prime Minister Phan Van Khai to New Zealand in May 2005. Consistent with expanding official and people-to-people links, the two Prime Ministers signed a Joint Declaration of Cooperation, which established a framework for strengthening bilateral relations in the coming years both to a level similar to that which New Zealand has with longstanding ASEAN partners. 2005 culminated with a very successful State visit by the New Zealand Governor-General to Viet Nam in November 2005, which added considerable depth and momentum to the bilateral relationship. The Vice President of Viet Nam, Madam Hoa, visited New Zealand in October 2006, followed by an extremely successful and productive visit by the President of Viet Nam in September 2007.
In addition to these bilateral linkages, Ministers and officials of the two countries meet regularly in multilateral and regional fora, such as the United Nations and its specialised agencies, APEC, the East Asia Summit and the ASEAN Regional Forum, with which New Zealand has dialogue partner status.
In 2001 the New Zealand Defence Attache based in Bangkok was accredited to Viet Nam. New defence cooperation activities are being developed, including training opportunities for Vietnamese military in New Zealand. HMNZS Te Kaha and HMNZS Endeavour visited Ho Chi Minh City in 2002 and 2004, and again in August 2006. The New Zealand Chief of Army visited in 2004, and NZDF’s Command and Staff College also made a visit to Viet Nam in 2005. Viet Nam’s Vice Minister of Defence visited New Zealand in early 2007.
New Zealand Police and Customs Attaches were cross-accredited to Viet Nam from Bangkok in 2003.
The New Zealand Education Counsellor was cross-accredited to Viet Nam from Malaysia in early 2007.
New Zealand and Viet Nam signed a bilateral trade agreement in July 1994, which granted MFN status to goods traded between the two countries. Negotiations for an ASEAN-Australia/New Zealand FTA were launched in November 2004, and should also increase opportunities for trade. Major new service sector opportunities for New Zealand are opening up in the education and consultancy sectors.
Negotiations on a bilateral Air Services Agreement (ASA) were successfully concluded in February 2003, when a draft ASA was initialled and subsequently approved by New Zealand’s Cabinet. The signing of the ASA was witnessed by Prime Minister Clark during her visit to Ha Noi in October 2003.
New Zealand’s main exports to Viet Nam are dairy and wood/paper products, with dairy products accounting for 55% of New Zealand’s export trade. Vietnamese imports have been mainly in furniture and parts, engines and motors, nuts, footwear, seats, coffee, crustaceans and computers. Services trade is not captured in the statistics, but the export of education, tourism, and consultation services has become an increasingly important component of the economic relationship.
New Zealand exporters have historically faced a challenging trading environment in Viet Nam, but the Government has made a series of commitments to simplify its trading regime and adopt international standards in areas such as customs valuation procedures and product classification as part of Viet Nam’s accession to the WTO. As a result, Viet Nam’s trading regime is becoming more transparent and consistent.
Viet Nam launched its bid to join the WTO in 1998, and remains committed to its pursuit of a “socialist oriented market economy”. New Zealand concluded bilateral market access negotiations with Viet Nam in January 2006. Separately, NZAID is providing capacity-building assistance for Vietnamese trade policy officials. Viet Nam formally acceded to the WTO in January 2007.
New Zealand’s current bilateral ODA activities are focused on the health sector in the central coastal province of Binh Dinh and on nationally-funded initiatives in the education sector. The bilateral ODA allocation for Viet Nam in the 2006/2007 financial year is NZ$6.7 million and will increase to NZ$10 million by 2007/2008. NZAID recently approved a grant of US$4 million over 2006-2009 for the implementation of Viet Nam’s National EFA Plan, which will support Viet Nam’s goal of universal primary education.
NZAID completed its Viet Nam Country Strategy in 2007. Sectors of focus are rural livelihoods, education, and trade and development.
The ELTO (English Language Training for Officials) programme is the most visible, longest standing and well recognised of NZAID’s activities in Viet Nam. Over more than a decade, a total of some 250 Vietnamese Government officials have come to New Zealand to study English language with specialised themes such as foreign affairs, international trade, and agriculture. The New Zealand Development Scholarships (NZDS) programme, which commenced in 2006, offers eleven post-graduate scholarships per year to Viet Nam – eight public scholarships targeted at government officials and three open scholarships. The NZDS-Public scholarships are targeted at sectors of importance to rural livelihoods and trade (agriculture, horticulture, natural resource management, bio-security, tourism, food safety/quality and agribusiness), basic education and governance.
New Zealand’s longstanding relationship with Binh Dinh Province continues with funding for a four year Maternal and Child Health project (US$3 million) implemented by the UN Fund for Population Activities (UNFPA) and the provincial Health Department. Ongoing support is provided to Volunteer Service Abroad (VSA) and the New Zealand/Viet Nam Health Trust, which are both based in Binh Dinh.
Since 2004, NZAID has responded to the emergence of Avian Influenza (bird flu) in Viet Nam by providing emergency assistance through CARE International. Projects have assisted the disinfection process and built capacity of local authorities to deal with any future outbreaks, as well as strengthening training, outreach and prevention services for the ongoing avian influenza response in Binh Dinh and Long An provinces. NZAID has pledged support for capacity building, investigation and surveillance activities at the Ministry of Agriculture and Rural Development (MARD).
NZAID’s Trade and Development Programme is assisting sectors of importance to the poor (agriculture, food quality and food safety, livelihood improvement) and supporting the newer members of ASEAN to establish the capability and mechanisms that will facilitate their integration into national, regional and international markets. NZAID’s Greater Mekong Subregion (GMS) programme funds capacity building and institutional strengthening courses for officials from Viet Nam at the Mekong Institute (MI) in Khon Kaen, Northern Thailand.
Since its inception 15 years ago, NZAID’s Asia Development Assistance Facility (ADAF) has funded NZ$13 million for 76 projects in Viet Nam. Recent projects have ranged from organic tea production, to assisting Viet Nam prepare documents for a US$32 million World Bank loan for road safety in Viet Nam, and an associated project that developed materials for teaching traffic safety in primary schools.
Viet Nam also benefits from regional and global NZAID programmes.
A New Zealand/Viet Nam Parliamentary Friendship Group, designed to forge greater links and understanding between our two parliaments was established in July 2007.
The modern phase of bilateral relations with Viet Nam was marked by the visits to New Zealand by Prime Minister Vo Van Khiet in May 1993 and Communist Party General Secretary Do Muoi in July 1995. Deputy Prime Minister Don McKinnon visited Viet Nam in July 1994, and Prime Minister Rt Hon Jim Bolger the following year.
Since 2003 the pace of visits to and from Viet Nam has increased. In May 2003 Viet Nam’s Standing Deputy Foreign Minister Nguyen Dinh Binh officially opened the Embassy of Viet Nam in Wellington. Members of Viet Nam’s National Assembly, lead by Chairman Nguyen Van An visited New Zealand in July 2004. Since then, several Vietnamese Parliamentary and other delegations have visited New Zealand to study topics such as governance and the role of the Ombudsman, defence and security, science and technology, education, economic policy and indigenous peoples’ policies.
The tempo of the relationship increased following the visit of Prime Minister Rt Hon Helen Clark in October 2003. In February 2004 Vietnamese Foreign Minister Nguyen Dy Nien visited New Zealand; Hon Trevor Mallard led an education delegation to Viet Nam in May 2004 and Hon Phil Goff, Minister of Foreign Affairs and Trade visited in July 2004. To mark the 30th anniversary of diplomatic relations, Prime Minister Phan Van Khai led a delegation of over 100 officials and business people to New Zealand in May 2005. The 30th anniversary year culminated in a State visit to Viet Nam by the New Zealand Governor General, HE Dame Silvia Cartwright.
When Viet Nam hosted APEC Meetings throughout 2006, a number of New Zealand Ministers combined attendance at the conferences with bilateral agendas. The Hon Phil Goff, Minister of Trade, made the first such visit to Ho Chi Minh City in June 2006 and the Prime Minister visited in November 2006 for the APEC Leaders Meeting. In October 2006, Vice President Madame Truong My Hoa, and a delegation of 22 officials and business people, visited New Zealand. In September 2007, the President of Viet Nam, HE Mr Nguyen Minh Triet, also visited New Zealand following his attendance at the APEC Summit in Sydney. The Deputy Prime Minister/Minister of Education and Training, Nguyen Thien Nhan, visited New Zealand in February 2008, and New Zealand’s Minister of Veterans’ Affairs/Civil Defence made an official visit to Ha Noi during the same month. Most recently, New Zealand’s Minister of Education/Ethnic Affairs visited Viet Nam in March 2008.
The Safetravel website provides a travel advisory for travellers to Viet Nam [external link].
Enquiries may be directed to Consular Division at the following numbers: Phone: 439 8000; Fax: 439 8532.
New Zealand Embassy, (Ha Noi)
Level 5
63 Ly Thai To Street
Ha Noi
Viet nam
Phone: (+84 4) 824 1481
Fax: (+84 4) 824 1480
Email: nzembhan@fpt.vn
Office hours: Mon-Fri 0830-1700
New Zealand Consulate-General, (Ho Chi Minh City)
Suite 909, Level 9
The Metropolitan
235 Dong Khoi Street
District 1
Ho Chi Minh City
Viet nam
Phone: (+84 8) 822 6907
Fax: (+84 8) 822 6905
Office hours: Mon-Fri 0830-1700
Embassy of the Socialist Republic of Viet Nam, Wellington
Level 21
Grand Plimmer Tower
2-6 Gilmer Terrace
PO Box 8042
Wellington
New Zealand
Ph: (+64 4) 473 5912
Fax: (+64 4) 473 5913
Email: embassyvn@paradise.net.nz
