Documents

COUNTRY PROFILE : VIETNAM

December 2004

Library of Congress
Federal Research Division

COUNTRY

Formal Name: Socialist Republic of Vietnam (Cong Hoa Xa Hoi Chu Nghia Viet Nam ).

Short Form: Vietnam .

Term for Citizen(s): Vietnamese.

Capital: Hanoi .

Major Cities: With 5.6 million people, Ho Chi Minh City (formerly Saigon ) is the most populous city. Hanoi has a population of 3.0 million. Other major cities are Danang, Haiphong , and Can Tho.

Independence : Vietnam declared independence from Japan and France on September 2, 1945 . However, Vietnam remained under French control until the communist Viet Minh defeated French forces at Dien Bien Phu in 1954.

Public Holidays: Official holidays are New Year’s (January 1), Tet or Lunar New Year (movable dates in January and February), Liberation Day to commemorate the fall of Saigon (April 30), Labor Day (May 1), and Independence Day to commemorate Japan ’s withdrawal following its defeat in World War II (September 2).  

Flag: Red, with a large yellow five-pointed star in the center.  

HISTORICAL BACKGROUND 

Origins: The Vietnamese trace the origins of their culture and nation to the fertile plains of the Red River Delta in northern Vietnam . After centuries of developing a civilization and economy based on the cultivation of irrigated rice, in the tenth century the Vietnamese began expanding southward in search of new rice lands. Until the mid-nineteenth century, the Vietnamese gradually moved down the narrow coastal plain of the Indochina Peninsula , ultimately extending their reach into the broad Mekong River Delta. Vietnamese history is the story of the struggle to develop a sense of nationhood throughout this narrow 1,500-kilometer stretch of land and to maintain it against internal and external pressures.

China was the chief source of Vietnam 's foreign ideas and the earliest threat to its national sovereignty. As a result of a millennium of Chinese control beginning in about 111 BC, the Vietnamese assimilated Chinese influence in the areas of administration, law, education, literature, language, and culture. Even during the following nine centuries of Vietnamese independence, lasting from the late tenth century until the second half of the nineteenth century, the Chinese exerted considerable cultural, if not political, influence, particularly on Vietnam ’s elite.

Colonial Period, Independence , and War: After 900 years of independence and following a period of disunity and rebellion, the French colonial era began during the 1858–83 period, when the French seized control of the nation, dividing it into three parts: the north ( Tonkin ), the center ( Annam ), and the south (Cochinchina). In 1861 France occupied Saigon , and by 1883 it had taken control of all of Vietnam as well as Laos and Cambodia . French colonial rule was, for the most part, politically repressive and economically exploitative. The Japanese occupied Vietnam during World War II but allowed the French to remain and exert some influence. At the war’s end in 1945, Ho Chi Minh, leader of the communist Viet Minh organization, declared Vietnam ’s independence in a speech that invoked the U.S. Declaration of Independence and the French Revolution’s Declaration of the Rights of Man and of the Citizen. However, the French quickly reasserted the control they had ceded to the Japanese, and the First Indochina War (1946–54) was underway. French control ended on May 7, 1954 , when Vietnamese forces defeated the French at Dien Bien Phu . The 1954 Geneva Conference left Vietnam a divided nation, with Ho Chi Minh's communist government ruling the North from Hanoi and Ngo Dinh Diem's regime, supported by the United States , ruling the South from Saigon (later Ho Chi Minh City ).

As a result of the Second Indochina War (1954–75), Viet Cong—communist forces in South Vietnam —and regular People’s Army of Vietnam (PAVN) forces from the North unified Vietnam under communist rule. In this conflict, the insurgents—with logistical support from China and the Soviet Union —ultimately defeated the Army of the Republic of Vietnam , which sought to maintain South Vietnamese independence with the support of the U.S. military, whose troop strength peaked at 540,000 during the communist-led Tet Offensive in 1968. The North did not abide by the terms of the 1973 Paris Agreement, which officially settled the war by calling for free elections in the South and peaceful reunification. Two years after the withdrawal of the last U.S. forces in 1973, Saigon , the capital of South Vietnam , fell to the communists, and on April 30, 1975 , the South Vietnamese army surrendered. In 1976 the government of united Vietnam renamed Saigon as Ho Chi Minh City , in honor of the wartime communist leader who died in September 1969. The Vietnamese estimate that they lost nearly 3 million lives and suffered more than 4 million injuries during the U.S. involvement in the war.  

Unified Vietnam : In the post-1975 period, it was immediately apparent that the popularity and effectiveness of the Vietnamese Communist Party (VCP) policies did not necessarily extend to the party’s peacetime nation-building plans. Having unified the North and South politically, the VCP still had to integrate them socially and economically. In this task, VCP policy makers were confronted with the South’s resistance to communist transformation, as well as traditional animosities arising from cultural and historical differences between North and South. More than a million Southerners, including about 560,000 “boat people,” fled the country soon after the communist takeover, fearing persecution and seizure of their land and businesses. About a million Vietnamese were relocated to previously uncultivated land called “new economic zones” for reeducation. 

The harsh postwar crackdown on remnants of capitalism in the South led to the collapse of the economy during the 1980s. With the economy in shambles, Vietnam ’s government altered its course and adopted consensus policies that bridged the divergent views of pragmatists and communist traditionalists. In 1986 Nguyen Van Linh, who was elevated to VCP general secretary the following year, launched a campaign for political and economic renewal (Doi Moi). His policies were characterized by political and economic experimentation that was similar to simultaneous reform agendas undertaken in China and the Soviet Union . Reflecting the spirit of political compromise, Vietnam phased out its reeducation effort. The government also stopped promoting agricultural and industrial cooperatives. Farmers were permitted to till private plots alongside state-owned land, and in 1990 the government passed a law encouraging the establishment of private businesses.

Compounding economic difficulties were new military challenges. In the late 1970s, two countries— Cambodia and China —posed threats to Vietnam . Clashes between Vietnamese and Cambodian communists on their common border began almost immediately after Vietnam ’s reunification in 1975. To neutralize the threat, Vietnam invaded Cambodia in December 1978 and overran Phnom Penh , the Cambodian capital, driving out the incumbent Khmer Rouge communist regime and initiating a prolonged military occupation of the country.

In February and March 1979, China retaliated against Vietnam 's incursion into Cambodia by launching a limited invasion of Vietnam , but the Chinese foray was quickly rebuffed. Relations between the two countries had been deteriorating for some time. Territorial disagreements along the border and in the South China Sea that had remained dormant during the Second Indochina War were revived at the war's end, and a postwar campaign engineered by Hanoi to limit the role of Vietnam 's ethnic Chinese community in domestic commerce elicited a strong protest from Beijing . China also was displeased with Vietnam because of its improving relationship with the Soviet Union .

During its incursion into Cambodia in 1978–89, Vietnam ’s international isolation extended to relations with the United States . The United States , in addition to citing Vietnam 's minimal cooperation in accounting for Americans who were missing in action (MIAs) as an obstacle to normal relations, barred normal ties as long as Vietnamese troops occupied Cambodia . Washington also continued to enforce the trade embargo imposed on Hanoi at the conclusion of the war in 1975. Soon after the Paris Agreement on Cambodia resolved the conflict in October 1991, however, Vietnam established or reestablished diplomatic and economic relations with most of Western Europe , China , and other Asian countries. Vietnam normalized relations with China in 1991 and with Japan in 1993. In February 1994, the United States lifted its economic embargo against Vietnam , and in June 1995, the United States and Vietnam normalized relations. Relations with China took another step forward after the two countries settled their long-standing border dispute in 1999. China is now a major trading partner, and Vietnam models its economic policies after China ’s.

As of late 2004, a three-person collective leadership was responsible for governing Vietnam . This triumvirate consisted of the VCP general secretary (Nong Duc Manh, April 2001– ), the prime minister (Phan Van Khai, September 1997– ), and the president (Tran Duc Luong, September 1997– ). General Secretary Manh headed up not only the VCP but also the 15 member Politburo. President Luong was chief of state, and Prime Minister Khai was head of government. The leadership is promoting a “socialist-oriented market economy” and friendly relations with China , Japan , the European Union, Russia , and the United States . Although the leadership is presiding over a period of rapid economic growth, official corruption and a widening gap between urban wealth and rural poverty remain stubborn problems that are eroding the VCP’s authority. A major goal for 2005 is gaining full membership in the World Trade Organization (WTO).  

GEOGRAPHY

Location: Vietnam is located in Southeast Asia , bordered by the Gulf of Tonkin and the South China Sea to the east, China to the north, Laos and Cambodia to the west, and the Gulf of Thailand to the south.

Size: Vietnam is long and thin, with an area of 330,363 square kilometers.

Land Boundaries: Vietnam shares land boundaries with Cambodia (1,228 kilometers), China (1,281 kilometers), and Laos (2,130 kilometers).

Disputed Territory: On December 30, 1999 , China and Vietnam signed a treaty that settled disputes over the two nations’ common border. However, the Paracel and Spratly Islands in the South China Sea are still regarded as disputed territory. Malaysia , Brunei , the Philippines , and Taiwan also claim sovereignty over the Spratly Islands , which are believed to be rich in oil and natural gas reserves. In May 2004, the government authorized 50 tourists and 40 officials to visit the Spratly Islands by boat. The other nations staking claim to the islands protested what they interpreted as an assertion of sovereignty by Vietnam . In October 2004, Vietnam invited bids for oil exploration in the Spratlys, triggering a complaint from China ’s Ministry of Foreign Affairs. In November 2004, China retaliated by moving an oil-drilling platform into position to explore for oil in the Paracels.

Length of Coastline: Vietnam ’s coastline along the Gulf of Tonkin , the South China Sea , and the Gulf of Thailand measures 3,444 kilometers.

Maritime Claims: In June 2004, Vietnam ’s National Assembly ratified an agreement originally reached with China in December 2000 that established an internationally valid maritime border in the Gulf of Tonkin . The ratification delay was attributable to concerns that the government had made too many concessions during negotiations. In addition, in April 2004 China and Vietnam agreed to a common fishing zone in the Gulf of Tonkin . Vietnam claims an exclusive economic zone (EEZ) of 200 nautical miles, the approximate beginning of the continental shelf.

Topography: Vietnam is a country of tropical lowlands, hills, and densely forested highlands, with level land covering no more than 20 percent of the area. The country is divided into the highlands and the Red River Delta in the north, and the Giai Truong Son (Central mountains, or the Chaîne Annamitique, sometimes referred to simply as the Chaîne), the coastal lowlands, and the Mekong River Delta in the south. The highest point in Vietnam is Fan Si Pan, at 3,143 meters above sea level, in the northwest.

Principal Rivers: A relatively dense network of rivers traverses Vietnam . The principal rivers are as follows: in the north, the Red and Thai Binh; in the center, the Ca, Ma, Han, Thach Han, and Thu Bon; and in the south, the Mekong and Dong Nai.

Climate: Vietnam ’s climate is tropical and monsoonal; humidity averages 84 percent throughout the year. Annual rainfall ranges from 1,200 to 3,000 millimeters, and annual temperatures vary between 5°C and 37°C.

Natural Resources: Vietnam ’s main natural resources consist of coal, copper, crude oil, gold, iron, manganese, silver, and zinc.

Land Use: In 2003 Vietnam ’s land use was distributed as follows: 21 percent, arable; 28 percent, forest and woodland; and 51 percent, other.

Environmental Factors: The National Environmental Agency, a branch of the Ministry of Science, Technology, and Environment, is responsible for environmental protection. At the provincial level, the Departments of Science, Technology, and the Environment bear responsibility. Non-governmental organizations, particularly the Institute of Ecological Economics , also play a role. Urbanization, industrialization, and intensive farming are having a negative impact on Vietnam ’s environment. These factors have led to air pollution, water pollution, and noise pollution, particularly in urban and industrial centers like Ho Chi Minh City and Hanoi . The most serious problem is waste treatment. Land use pressures have led to significant environmental problems, including severe deforestation, soil erosion, sedimentation of rivers, flooding in the deltas, declining fish yields, and pollution of the coastal and marine environment. The use of Agent Orange by the U.S. military in the Second Indochina War (1954–75) has had a lingering effect on Vietnam in the form of persistent environmental contamination that has increased the incidence of various diseases and birth defects.

Time Zone: Seven hours ahead of Greenwich Mean Time.

SOCIETY

Population: In 2003 Vietnam ’s population was 81.3 million, and it was growing at a rate of about 1.3 percent per year. The average population density was 246 people per square kilometer, one of the highest levels in the world. The highest concentration of people was in the Red River Delta, in the northeast where Hanoi is located, and the lowest concentration was in the northwest. The population, which traditionally has been primarily rural, has become increasingly urbanized since 1986 when the Doi Moi economic renewal program began to boost income and employment opportunities in the cities. In 2002 about 25 percent of Vietnam ’s population was urban and 75 percent rural, down from 85 percent in the early 1980s. Vietnam ’s net migration rate was estimated at –0.45 migrant(s) per 1,000 population in 2004. Consistent with the trend toward urbanization, urban areas, such as Ho Chi Minh City , Hanoi , Da Nang , and the Central Highlands , have attracted the most migrants. In addition, a steady stream of migrants continues to move from the North to the South. As of 2002, the two largest groups of refugees were Vietnamese and ethnic Chinese returning from Cambodia and the indigenous Montagnards from the Central Highlands seeking asylum in Cambodia .

Demography: In 2004 Vietnam ’s age distribution was estimated as follows: 0 to 14 years of age, 29.4 percent; 15 to 64, 65 percent; and 65 and older, 5.6 percent. This age distribution signals slower population growth than in the past. In 2003 Vietnam ’s birthrate was 19.6 per 1,000 people, and the fertility rate was 2.2 children born per woman; both rates were about average globally. The infant mortality rate was 29.3 per 1,000 live births, and the death rate was nearly 6.2 per 1,000; both rates were better than average. According to 2004 estimates, life expectancy was 70.4 years for the total population, almost 67.9 years for men and 73 years for women. Life expectancy rates were about average globally.

Ethnic Groups: Vietnamese are the predominant ethnic group; they constitute 85 to 90 percent of the population. Chinese account for 3 percent of the population. Other ethnic groups are the Hmong, Thai, Khmer, Cham, and Montagnards, an indigenous group living in the Central Highlands.

Languages: Vietnamese is the official language of Vietnam . The Vietnamese have adopted a Romanized script introduced by the French during the colonial period. English is increasingly accepted as a second language. Some French language influence persists. Other languages used are Chinese, Khmer, and mountain area dialects.

Religion: With 7.6 million followers, Buddhism is the most popular religion. The second most popular religion is Catholicism, with 6 million adherents. Other faiths, with the number of followers indicated, are Cao Dai (2 million), Hoa Hao (1 million), Protestantism (500,000), and Islam (50,000).

Education and Literacy: In 2003 Vietnam ’s literacy rate was 94 percent, including 95.8 percent for men and 92.3 percent for women. However, educational attainment was less impressive. Although 92 percent of eligible children were enrolled in primary school in 2000 and five years of primary school education are considered compulsory, only two-thirds completed the fifth grade. The cost of tuition, books, and uniforms and the need to supplement family income were the two main reasons for dropping out. A huge disparity exists in primary school enrollment between the cities and rural parts of Vietnam . In some rural areas, only 10 to 15 percent of the children progress beyond third grade, whereas almost 96 percent of pupils in Ho Chi Minh City complete fifth grade. In 2000 enrollment in secondary school was only 62.5 percent, much lower than in primary school. One of the government’s goals is to expand access to secondary education.

Health: The overall quality of healthcare in 2003 has been characterized as “good,” in view of such indicators as life expectancy (70.4 years), infant mortality (29.3 per 1,000 live births), and physicians per capita (1.3 per 1,000 people). However, malnutrition is still common in the provinces, and the life expectancy and infant mortality rates are stagnating. In 2001 government spending on health care corresponded to just 0.9 percent of gross domestic product (GDP). Government subsidies covered only about 20 percent of health care expenses, with the remaining 80 percent coming out of individuals’ own pockets.

In 1954 the government in the North established a public health system that reached down to the hamlet level. After reunification in 1976, this system was extended to the South. Beginning in the late 1980s, the quality of health care began to decline as a result of budgetary constraints, a shift of responsibility to the provinces, and the introduction of charges. Inadequate funding has led to delays in planned upgrades to water supply and sewage systems. As a result, almost half the population has no access to clean water, a deficiency that promotes such infectious diseases as malaria, dengue fever, typhoid, and cholera. Inadequate funding also has contributed to a shortage of nurses, midwives, and hospital beds. In 2000 Vietnam had only 250,000 hospital beds, or 14.8 beds per 10,000 people, a very low ratio among Asian nations, according to the World Bank.

Vietnam has made progress in combating malaria, for which the mortality rate declined sharply, to about 5 percent of the rate in the early 1990s, after the country introduced antimalarial drugs and treatment. However, tuberculosis (TB) cases are on the rise, with 57 deaths per day reported in May 2004. With an intensified vaccination program, better hygiene, and foreign assistance, Vietnam hopes to reduce sharply the number of TB cases and annual new TB infections.

As of mid-2004, Vietnam had diagnosed 81,206 human immunodeficiency virus (HIV) cases, of which 12,684 developed acquired immune deficiency syndrome (AIDS) and 7,208 died. But the actual number of HIV-positive individuals is estimated to be as high as 200,000. An average of 40–50 new infections are reported every day in Vietnam . Vietnam hopes to contain the HIV infection rate at the current official rate of 0.3 percent, which is about average worldwide, by limiting the disease as much as possible to sex workers and intravenous drug users. However, if the current trend continues, the number of infected persons could reach 1 million by 2010. One of the impediments to containing HIV/AIDS is that the victims face discrimination and stigmatization that are more severe than almost anywhere else in the world, according to a United Nations official. In June 2004, the Bush Administration announced that Vietnam would be one of 15 nations to receive funding as part of a US$15 billion global AIDS plan.

Welfare: Vietnam ’s welfare efforts target victims of the Second Indochina War (1954–75), such as individuals disabled in combat or by toxic chemicals and the families of fallen combatants. About 5 million Vietnamese, corresponding to more than 6 percent of the population, are disabled. The Ministry of Labor, War Invalids, and Social Affairs administers welfare. Vietnam has legislated a social insurance system with provisions for old age, disability, and death; sickness and maternity; and work injury. Coverage is reported to be mandatory for state employees, non-state enterprises with more than 10 employees, and foreign-invested enterprises. Special programs are said to exist for government civil servants and armed forces personnel.

ECONOMY

Overview: Beginning in the 1980s, dire economic conditions forced the government to relax restrictions on private enterprise and sharply cut back on labor camp prisoners, many of them entrepreneurs. In 1986 Vietnam launched a political and economic renewal campaign (Doi Moi). Doi Moi introduced reforms intended to facilitate the transition from a centralized economy to a “socialist-oriented market economy.” Doi Moi combined government planning with free-market incentives. The program abolished agricultural collectives, removed price controls on agricultural goods, and enabled farmers to sell their goods in the marketplace. It encouraged the establishment of private businesses and foreign investment, including foreignowned enterprises.

By the late 1990s, the success of the business and agricultural reforms ushered in under Doi Moi was clearly evident. More than 30,000 private businesses had been created, and the economy was growing at an annual rate of more than 7 percent. During the 1990s, poverty declined from 50 percent to 30 percent of the population. Poverty continued to decline between 1998 and 2002; the World Bank estimates that 8 percent of Vietnam ’s population moved out of poverty during this period, although progress varied geographically. Most prosperous were the major cities, where per capita income rose rapidly to reach about US$1,000 in 2002. In addition, inflation declined from an annual rate of more than 160 percent in 1988 to only 3 percent in 2003, reflecting the success of economic stabilization measures.

In 2001 the Vietnamese Communist Party (VCP) approved a 10-year economic plan that enhanced the role of the private sector while reaffirming the primacy of the state. In 2003 the private sector accounted for more than one-quarter of all industrial output, and the private sector’s contribution was expanding more rapidly than the public sector’s (18.7 percent vs. 12.4 percent growth from 2002 to 2003).

Despite these signs of progress, the World Economic Forum’s 2004 Global Competitiveness Report, which reflects the subjective judgments of the business community, ranked Vietnam 77th in growth competitiveness in the world (down from 60th place in 2003) and 79th in business competitiveness (down from 50th place in 2003), well behind its model China, which ranked 46th and 47th in these respective categories. Vietnam ’s sharp deterioration in the rankings from 2003 to 2004 was attributable in part to negative perceptions of the effectiveness of government institutions. Official corruption is endemic despite efforts to curb it. Vietnam also lags behind China in terms of property rights, the efficient regulation of markets, and labor and financial market reforms. State-owned banks that are poorly managed and suffer from non-performing loans still dominate the financial sector.

Although 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 extremely low base, reflecting the crippling effect of the Second Indochina War (1954–75) and repressive economic measures introduced in its aftermath. Whether rapid economic growth is sustainable is open to debate. The government may not be able to follow through with plans to scale back trade restrictions and reform state-owned enterprises. Reducing trade restrictions and improving transparency are keys to gaining full membership in the World Trade Organization (WTO), as planned in 2005. The government hopes to reform the state-owned sector by partially privatizing various state-owned enterprises, beginning with Vietcombank, a large state-owned commercial bank.

Gross Domestic Product (GDP): In 2003 Vietnam ’s GDP was US$39.2 billion. Per capita gross national income was US$480. However, based on purchasing power parity (buying power for a basket of goods without regard for market exchange rates), Vietnam ’s per capita GDP was US$2,500. In 2002 the contributions to GDP by sector were as follows: agriculture, 23.0 percent; industry, 38.5 percent; and services, 38.5 percent. Reflecting Vietnam’s hybrid economy, industry ownership was mixed, as indicated by percentage of output, as follows: stateowned, 40 percent and declining; privately owned, 25 percent, but employing four times as many workers as the state-owned sector; and foreign-owned, 35 percent.

Government Budget: In November 2003, Vietnam ’s National Assembly approved a total state budget of about US$12 billion for 2004, corresponding to about 26.5 percent of estimated gross domestic product (GDP). The government’s budget deficit is expanding, from 2.0 percent of GDP in 2002, to an estimated 2.4 percent in 2003, and a targeted 5 percent in 2004.

Inflation: In 2003 inflation was a low 3 percent, down from 160 percent in 1988. The decline reflects the beneficial effect of fiscal and monetary reforms aimed at stabilizing the economy.

Agriculture, Forestry, and Fishing: In 2002 agriculture and forestry accounted for 23 percent of gross domestic product (GDP). However, agricultural employment was much higher than agriculture’s share of GDP; in 2002 some 66.1 percent of the employed labor force was engaged in agriculture, forestry, and fishing. Rice is the staple crop, accounting for 4.3 percent of export earnings in 2002. The relaxation of the state monopoly on rice exports transformed the country into the world’s second or third largest rice exporter. Other cash crops are coffee, cotton, peanuts, rubber, sugarcane, and tea.

In 2002 Vietnam produced an estimated 29.5 million cubic meters of roundwood; about 90 percent was consumed as fuel. Production of sawnwood was a more modest 2,950 cubic meters. In 1992, in response to dwindling forests, Vietnam imposed a ban on the export of logs and raw timber. In 1997 the ban was extended to all timber products except wooden artifacts. During the 1990s, Vietnam began to reclaim land for forests with a tree-planting program.

Vietnam ’s fishing industry, which has abundant resources given the country’s 3,444-kilometer coastline and extensive network of rivers and lakes, has experienced moderate growth overall. In 2001 the total catch was about 2 million tons. However, seafood exports expanded fourfold from 1990 to 2002 to more than US$2 billion, driven in part by shrimp farms in the South and “catfish,” which are a different species from their American counterpart but are marketed in the United States under the same name. By concentrating on the U.S. market for the sale of vast quantities of shrimp and catfish, Vietnam triggered antidumping complaints by the United States , which imposed tariffs in the case of catfish and is considering doing the same for shrimp.

Mining and Minerals: In 2002 mining and quarrying accounted for an 8.6 percent share of gross domestic product (GDP); in 2000 the sector employed 0.6 percent of the workforce. Petroleum and coal are the main mineral exports, with crude petroleum accounting for 21.1 percent of total merchandise exports in 2001. Also mined are antimony, bauxite, chromium, gold, iron, natural phosphates, tin, and zinc.

Industry and Manufacturing: Although industry contributed 38.5 percent of gross domestic product (GDP) in 2002, it employed only 12.9 percent of the workforce. In 2000, 22.4 percent of industrial production was attributable to non-state activities. During 1990–2002, industrial GDP grew at an average annual rate of 11.1 percent. Manufacturing contributed 20.6 percent of GDP in 2002, while employing 10.2 percent of the workforce. During 1990–2002, manufacturing GDP grew at an average annual rate of 10.9 percent. The top manufacturing sectors—food processing, cigarettes and tobacco, textiles, chemicals, and electrical goods—experienced rapid growth. Almost a third of manufacturing and retail activity is concentrated in Ho Chi Minh City .