Changes

Originating in what is now southern China and northern Vietnam, the Vietnamese people pushed southward over 2 millennia to occupy the entire eastern seacoast of the Indochinese Peninsula. Ethnic Vietnamese constitute about 90% of Vietnam's population.  

Originating in what is now southern China and northern Vietnam, the Vietnamese people pushed southward over 2 millennia to occupy the entire eastern seacoast of the Indochinese Peninsula. Ethnic Vietnamese constitute about 90% of Vietnam's population.  

Vietnam's approximately 2.3 million ethnic Chinese, concentrated mostly in southern Vietnam, constitute Vietnam's largest minority group. Long important in the Vietnamese economy, Vietnamese of Chinese ancestry have been active in rice trading, milling, real estate, and banking in the south and shop keeping, stevedoring, and mining in the north. Restrictions on economic activity following reunification of the north and south in 1975 and the subsequent but unrelated general deterioration in Vietnamese-Chinese relations sent chills through the Chinese-Vietnamese community. In 1978-79, some 450,000 ethnic Chinese left Vietnam by boat as refugees (many officially encouraged and assisted) or were expelled across the land border with China.  

Vietnam's approximately 2.3 million ethnic Chinese, concentrated mostly in southern Vietnam, constitute Vietnam's largest minority group. Long important in the Vietnamese economy, Vietnamese of Chinese ancestry have been active in rice trading, milling, real estate, and banking in the south and shop keeping, stevedoring, and mining in the north. Restrictions on economic activity following reunification of the north and south in 1975 and the subsequent but unrelated general deterioration in Vietnamese-Chinese relations sent chills through the Chinese-Vietnamese community. In 1978–79, some 450,000 ethnic Chinese left Vietnam by boat as refugees (many officially encouraged and assisted) or were expelled across the land border with China.  

The second-largest ethnic minority grouping, the central highland peoples (formerly termed Montagnards or mountain people), comprise two main ethnolinguistic groups—Malayo-Polynesian and Mon-Khmer. About 30 groups of various cultures and dialects are spread over the highland territory.  

The second-largest ethnic minority grouping, the central highland peoples (formerly termed Montagnards or mountain people), comprise two main ethnolinguistic groups—Malayo-Polynesian and Mon-Khmer. About 30 groups of various cultures and dialects are spread over the highland territory.  

==Economy==

==Economy==

[[Image:Vietnam.JPG|right|300px]]

[[Image:Vietnam.JPG|right|300px]]

Economic stagnation marked the period after reunification from 1975 to 1985. In 1986, the Sixth Party Congress approved a broad economic reform package called "Doi Moi" (renovation) that introduced market reforms and dramatically improved Vietnam's business climate. Vietnam became one of the fastest-growing economies in the world, averaging around 8% annual gross domestic product (GDP) growth from 1990 to 1997 and 6.5% from 1998-2003. In 2004-2005, GDP grew over 8% annually. Vietnam's inflation rate, as measured by the consumer price index, which stood at an annual rate of over 300% in 1987, was below 4% from 1997 (except in 1998 when it rose to 9.2%) until 2003. However, in 2004 the consumer price index increased to 9.5%, dropping in 2006 to 7.5%. Average annual foreign investment commitment has risen sharply as a result of the U.S.-Vietnam Bilateral Trade Agreement and Vietnam's drive toward membership in the World Trade Organization (WTO). In 2007, investment commitment is expected again to reach $10 billion, matching the $10 billion level of 2006. The average Vietnamese savings rate is about 30%. From 1990 to 2005, agricultural production nearly doubled, transforming Vietnam from a net food importer to the world's second-largest exporter of rice.

Economic stagnation marked the period after reunification from 1975 to 1985. In 1986, the Sixth Party Congress approved a broad economic reform package called "Doi Moi" (renovation) that introduced market reforms and dramatically improved Vietnam's business climate. Vietnam became one of the fastest-growing economies in the world, averaging around 8% annual gross domestic product (GDP) growth from 1990 to 1997 and 6.5% from 1998 to 2003. In 2004–2005, GDP grew over 8% annually. Vietnam's inflation rate, as measured by the consumer price index, which stood at an annual rate of over 300% in 1987, was below 4% from 1997 (except in 1998 when it rose to 9.2%) until 2003. However, in 2004 the consumer price index increased to 9.5%, dropping in 2006 to 7.5%. Average annual foreign investment commitment has risen sharply as a result of the U.S.-Vietnam Bilateral Trade Agreement and Vietnam's drive toward membership in the World Trade Organization (WTO). In 2007, investment commitment is expected again to reach $10 billion, matching the $10 billion level of 2006. The average Vietnamese savings rate is about 30%. From 1990 to 2005, agricultural production nearly doubled, transforming Vietnam from a net food importer to the world's second-largest exporter of rice.

*GDP (2006): $61 billion.

*GDP (2006): $61 billion.

*Real growth rate (2006): 8.2%.

*Real growth rate (2006): 8.2%.

The December 10, 2001, entry-into-force of the Bilateral Trade Agreement (BTA) between the U.S. and Vietnam was a significant milestone for Vietnam's economy and for normalization of U.S.-Vietnam relations. Implementation of this agreement, which includes provisions on trade in goods, trade in services, enforcement of intellectual property rights, protection for investments, and transparency, fundamentally changed Vietnam's trade regime and helped liberalize its economy. By virtue of the BTA, normal trade relations (NTR) status was accorded to Vietnam on a conditional basis. Bilateral trade between the two countries expanded dramatically, rising more than five-fold from 2001 to $9.6 billion in 2006.  

The December 10, 2001, entry-into-force of the Bilateral Trade Agreement (BTA) between the U.S. and Vietnam was a significant milestone for Vietnam's economy and for normalization of U.S.-Vietnam relations. Implementation of this agreement, which includes provisions on trade in goods, trade in services, enforcement of intellectual property rights, protection for investments, and transparency, fundamentally changed Vietnam's trade regime and helped liberalize its economy. By virtue of the BTA, normal trade relations (NTR) status was accorded to Vietnam on a conditional basis. Bilateral trade between the two countries expanded dramatically, rising more than five-fold from 2001 to $9.6 billion in 2006.  

By requiring a range of reforms to Vietnam's trade and investment regime, the BTA also helped Vietnam prepare for the next major step in its integration into the world economy: membership in the WTO. Following the conclusion of bilateral negotiations with interested WTO members and completion of multilateral negotiations in 2006, the WTO General Council approved the terms for Vietnam's membership on November 7, 2006. Vietnam formally acceded to the WTO as its 150th member on January 11, 2007. Vietnam was granted unconditional normal trade relations (NTR) status by the United States through a Presidential Proclamation signed by President Bush on December 29, 2006. On January 11, 2007 the United States removed the application of quotas on textile and apparel imports from Vietnam consistent with the terms of our WTO bilateral market access agreement and treatment provided other WTO members. To meet the obligations of WTO membership, Vietnam revised nearly all of its trade and investment laws and guiding regulations. As a result, foreign investors and those seeking to sell goods and services to the increasingly affluent Vietnamese population will benefit from the improved legislative framework and lower trade barriers. Local firms that have heretofore enjoyed a range of protections, meanwhile, will experience increased competition. As 2006 drew to a close, the Government of Vietnam reasserted its goal of becoming a middle-income country by 2010. That would entail raising the average per capita income to at least $1,000 from the 2006 average of $726. Economic analysts, including those at the World Bank, believe that this goal is attainable.

By requiring a range of reforms to Vietnam's trade and investment regime, the BTA also helped Vietnam prepare for the next major step in its integration into the world economy: membership in the WTO. Following the conclusion of bilateral negotiations with interested WTO members and completion of multilateral negotiations in 2006, the WTO General Council approved the terms for Vietnam's membership on November 7, 2006. Vietnam formally acceded to the WTO as its 150th member on January 11, 2007. Vietnam was granted unconditional normal trade relations (NTR) status by the United States through a Presidential Proclamation signed by President Bush on December 29, 2006. On January 11, 2007, the United States removed the application of quotas on textile and apparel imports from Vietnam consistent with the terms of our WTO bilateral market access agreement and treatment provided other WTO members. To meet the obligations of WTO membership, Vietnam revised nearly all of its trade and investment laws and guiding regulations. As a result, foreign investors and those seeking to sell goods and services to the increasingly affluent Vietnamese population will benefit from the improved legislative framework and lower trade barriers. Local firms that have heretofore enjoyed a range of protections, meanwhile, will experience increased competition. As 2006 drew to a close, the Government of Vietnam reasserted its goal of becoming a middle-income country by 2010. That would entail raising the average per capita income to at least $1,000 from the 2006 average of $726. Economic analysts, including those at the World Bank, believe that this goal is attainable.

===Agriculture and Industry===

===Agriculture and Industry===