VIETNAM: A GROWING MARKET IN GLOBAL TRADE

By Kathryn Lively

When you heard the word "Vietnam," more than likely images of the turbulent war that plagued this Southeast Asian nation come to mind. Nearly forty years after the fall of Saigon, Vietnam has since found association in other parts of the world with the overall mindset of the 1960s - anti-war protests and consequent films depicting the military actions there. Some may expect that the country is completely rural and dominated by rice fields as seen in the movies, yet in truth Vietnam has developed steadily since the war to become a strengthening player among the Next 11 nations.

Vietnam as an Emerging Global Power

As a Socialist Republic, Vietnam operates on a market economy that relies heavily on labor, and the costs of goods and services produced in the country are determined by what is needed and what is offered. In the mid-1980s, the Vietnamese government allowed for the establishment of private enterprises to operate in addition to state-run businesses for the purpose of commodity distribution. Consistent with the current Chinese market economy, Vietnam's operations observe many principles of Marxism and apply these theories toward better participation in global trade. Presently, with trade relations tense between China and the United States and other nations, reliance on Vietnam for specific resources may grow as their economy stands to expand.

Vietnam is known primarily for its agricultural production, rice being the largest crop and more than half the nation's working population employed in farming. However, in present times Vietnam's gross domestic product relies more on industrial and service labor to keep the country running. In addition to rice, which is traded with main partners in the United States and Japan, Vietnam is also know for the following exports:

Crude Oil - Oil exports account for, on average, one billion dollars USD to Vietnam's economy. The nation is presently the third largest producer of crude among countries in Southeast Asia.

Tea and Coffee - Vietnam ranks second in global coffee production behind Brazil, with nearly two tons exported annually. While coffee was introduced to the area in the 1800s, the Vietnamese have cultivated tea for thousands of years - with oolong and green varieties counted among the most popular.

Textiles - The United States trades approximately $1 billion worth of textiles and apparel every year from Vietnam. Sports apparel, including shoes bearing name brands, are often in high demand.

What Vietnam sends out to trade partners, in return the country receives these and other goods from mainland China, Singapore, and Japan.

Refined petroleum - Like many countries that produce crude, Vietnam relies on trade partners to refine oil and gas and return the finished product to maintain their industry.

Cotton - Though an agricultural nation by history, cotton is not a major crop here. What is imported goes out as finished fabric.

Building supplies - Steel and cement for construction are particularly needed as the major areas of Vietnam grow in correspondence to industry.

Transportation - Motorcycles are a popular method of moving around the cities and rural areas. Honda is one major distributor to the nation.

As the economy in Vietnam continues to expand, perhaps one day the nation will outgrow the images of past wars imprinted by way of the popular media. With major supports like the United States and Japan interested in trade agreements, it's certain Vietnam will rise in the ranks of the Next Eleven.

Kathryn Lively is a freelance writer specializing in articles on global trade portals and supply chain management. Article Source: http://EzineArticles.com/?expert=Kathryn_Lively

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