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Introduction to South-east Asia Chapter 1 1 Lecturer: MEAS SOPHEANITH Tel: 069 29 46 42 / 017 557 861 E-mail: [email protected]

Chapter 1 Introduction to Southeast Asia Revised

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Introduction to South-east AsiaChapter 11Lecturer: MEAS SOPHEANITHTel: 069 29 46 42 / 017 557 861E-mail: [email protected] Outline

Getting Acquainted with S. East AsiaHistorical GeographyPolitical GeographyEconomic Geography

2Where is S. E Asia?

Politically, S. E Asia is made up of 10 coun- tries: Brunei Darussalam (Brunei), Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand and Vietnam.

S. E Asia is divided by political boundaries established by both land and water. 34

Some of countries in this region are fragmented, scattered over thousands of Islands.

The Philippines archipelago (Chain of islands) exists of more than 7,000 islands.

Indonesia exists of nearly 17,000 islands in which 6,000 are inhabited. 5S. E. Asia area = 1.75 million square miles (4.5 million km2).

Countries range in size from the biggest one to the smallest one.

Indonesia with a land area of 1,919,440 km2 (about 3 times the size of Texas) to tiny Singapore, with a land area of 692.7 km2 (about 3 and a half times the size of Washington D.C.)6Much of S.E. Asia lies astride the Ring of Fire, a zone known for earthquakes and volcanoes that surround the Pacific Ocean basin.

On December 26, 2004, one of the most violent earthquakes ever recorded struck the northwest coast of Sumatra, an island of Indonesia.

This tsunami killed an estimated 250,000 people in areas as distant as the east coast of Africa.

7Today terrorists pose the major threat to human life and property.

In 2002, a bomb killed more than 200 people, mostly tourists in Bali, Indonesia.

The greatest growing threat seems to be coming from additional violent Islamic groups, including Gerakan Mujahidin Islam Pattani in Thailand and Abu Sayyaf in the Philippines.8

8The problems that relate to regional political instability seem to be declining.

Democracy appears to be getting stronger, especially in Indonesia, Singapore, Malaysia, the Philippines and Thailand.

Elsewhere, countries such as Laos, Cambodia and Vietnam are moving away from Communist practices. 9Burma has become isolated in the international community because of its anti- democratic practices and military rule.

Economic activity directly connects S.E. Asia to the rest of the world.

10Products manufactured in the region rang from clothing and toys to high-tech computer chips and laptop computers.

The Association of South East Asian Nations (ASEAN) has helped propel this region rapidly forward since it was found in 1967.

All ten S.E. Asian countries are now members; Cambodia, the last to join, became a member on 30 April, 1999. 11The successes of ASEAN are great, and the economic and political influence of the group on the international scene has been tremendous.

The people of S.E. Asia present a wonderful mosaic of humanity.

Today the people of S.E. Asia have become the neighbors and friends of other in Western and European societies.1213

13

From Colonies to Countries1414

World War I

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World War II1515WW II was punctuates the history of S.E Asia like an exclamation mark.

The war provided the context for stunning changes during, and perhaps more importantly, after the conflict.

Japan is an island neighbor to S.E. Asia.16Japan rapidly moved forward from an era of traditional Shogun and Samurai dominance to the Meiji era of modernization.

Because of its ambition to extend power and thirst for natural resources, Japan invaded part of China in 1894 and Russia in 1904-1905.

Japan continued to expand and grew stronger in the Pacific region as European and the US became immersed in WW II.17All of S.E. Asia was under Japans rule by 1942.

Thailand was attacked but chose to become a Japanese ally against the Western allied forces rather than be occupied by Japan.

Japans occupation of S.E. Asia provide both negative and positive effects:18 Negative Effects:Tens of thousands of people died of starvation or working as slave laborers.Women in some countriesthe Philippines, Indonesia, Burmawere forced to become comfort women or prostitutes.Data show that more than 200,000 women were forced in to prostitution during the Japanese occupation of S.E. Asia.19 Positive Effects:Japans slogan in 1942 was, The leader of Asia, the protector of Asia, the Light of Asia.To help to promote nationalist movements in some countriesVietnam, Indonesia and the Philippines.To cast off European and American colonial powers from the region.

20With the battle of Midway, the tide of WW II in the Pacific started to turn toward the United States and the Allies.

The Allies methodically pushed Japans forces back to their homeland.

Fearing thousands or casualties in an attempt to invade Japan, President Truman chose to use atomic bombs on the cities of Hiroshima and Nagasaki.

21

President Harry S Truman(1884- 1972)In office: 1945- 1953The bombs ferocity was unleashed on August 6 and 9, respectively, in 1945.

Nationalism and New NationsAs the curtain closed on WW II, European countries sought to regain control over their former colonies.

Many countries in S.E. Asia had fought alongside the Allies to help defeat Japan.

They believe that they now deserved independence.22 IndonesiaIndonesia was under the Netherlands colony for a period of times.

Sukarno assumed independence from the Dutch on August 17, 1945.

Because of the US involvement, the Netherlands finally transferred all powers to the Republic of Indonesia and Jakarta was established as the capital.23This caused the first Indo-China war between the nationalists and France, lasting from 1946 to 1954.

After the conflict subsided, Vietnam was divided into two partsNorth Vietnam (DRV) and South Vietnam, Associated State of Vietnam (ASV) by Geneva Agreement of 1954.

24The second Indo-China war happened after disagreement amongst concerned parties.

Ho Chi Minh had become more closely tied to communistsPRC and the Soviet Union.

South Vietnam (ASV) was tied more closely to the West and to the United States.

In 1961, US President John F. Kennedy started to increase aid to S. Vietnam in the hope of fending off the communist intrusion. 25

John F Kennedy 35th US PresidentIn Office: 1961- 63

By 1964, however, the DRV controlled almost half of S. Vietnam.

By 1967, half a million US troops were in Vietnam and heavy air bombing was taken place in Hanoi and other strategic location in N. Vietnam.

In 1969, the United States attacked Cambodia to remove Vietnamese base that were operating just across the common border.26The expanded did not end the successes of N. Vietnam because the United States began to grow tired of the war.

Ultimately, the US withdrew its forces, and N. Vietnam succeeded in defeating S. Vietnam.

The country was formally reunited in 1976.27Laos and Cambodia also had been parts of French-Indochina and were affected greatly by the wars in Vietnam.

Laos received independence from France in 1954 but the situation remained complicated because of Vietnams invasion in 1959.

Laos is now under the Communist rule called Laos Peoples Democratic Republic (LPDR).28After WW II, Cambodia followed a different course than the other parts of indo-China did.

Prince Norodom Sihanouk worked carefully with the French to arrange the successful transition to full independence.

Finally, Cambodia gained full independence from France on November 9, 1953 under the crusade of Prince Sihanouk.29In 1970, the Sihanouk Government was overthrown in a military coup led by General Lon Nol.

Lon Nols government backed by the US was called the Khmer Republic and it lasted until 1975.

In 1975, Cambodia was under Khmer Rouge regime called Democratic Kampuchea led by Pol Pot.

30

Marshal Lon NolIn office: 1972- 1975

The regime continued till 1979 when Vietnam invaded Cambodia.

During 3 years, 8 months and 20 days of Pol Pots rule.More than 3 million people were killed.

The Killing Fields was filmed as a documentation for the next generations.31

Pol Pot (1928- 1998)In Office: 1976- 79

Singapore and MalaysiaSingapore and Malaysia share the history of British colonization and are close in geographic proximity.

Singapore was under the Japanese occupation during WW II.

Tens of thousands of people were tortured or killed.3233

Lee Kwan Yew In office5 June 1959 28 November 1990Lee Hsien LoongPresent PM of SingaporeHe served as the first prime minister of Singapore.

Under Lees guidance, Singapore became a global financial and industrial powerhouse, despite having almost no natural resources.

Malaysia gained independence in 1957 led by Tunku Abdul Rahman.34He was the first prime minister in the federation of Malaya (1957- 1963) and of Malaysia (1963- 1970).

Malaysia moved forward significantly in the economic realm under Prime Minister Mahathir bin Mohammed (1981- 2003).

His vision helped transform Malaysia from a natural resource provider to a provider of world- class technology.35 The PhilippinesThe Philippines was to receive independence in 1944 under the Act of Tydings McDuffie passed by the US Congress in 1934.

This transition was delayed until 1946 because of Japanese occupation of the island during world war II.36The Philippines and the US maintained strong economic and military relationship for several decades after WW II.

By 1991, American bases in the Philippines had been closed.

Ferdinand Marcos was the first Pilipino president reelected to the office in 1969.

37Marcos, however, was limited by the Constitutiona virtual clone of American documentto two four-year terms.

He turned the country into a dictatorship that was subject to the rise of opposition against him.

Political opponents including Beningno Aquino and journalists were arrested and jailed as martial rule continued from 1972 to1981.38After returning from the United States in 1983, Aquino was killed by an alleged Communist gunman.

Because of the assassination, Pilipino People Power was born and forced Marcos to resign from office in 1986.

Aquinos wife, Corazon, took office as the 7th president of the Philippines. 39 Burma and ThailandBurma was a major stage for fighting during world war II.

The Allies, led in Burma by British, tried to prevent Japan not to create an Asia empire.

The rugged terrain and climate in Burma took a huge toll on both sides during the war.40The armies struggled not only each other for survival but also against the unforgiving environment.

Because of the Britishs promise, Burma became independent soon after the war in 1948.

A parliamentary government ruled until 1962, when the military under leadership of General Ne Win staged a coup.

41In 1988, massive public demonstration forced Ne Win to resign from office.

An estimated 10,000 demonstrators were killed in Rangoon (Yangon) when the military fired on them with machine guns.

Despite this brutal power, the protestors forced the military government to conduct general election.42The opposition leader Aung San Suu Kyi won a landslide victory in the election.

She not only took the office but also placed under house arrest by military regime.

In 1991, Aung San Suu Kyi won the Nobel Peace Prize in terms of leading democracy.4344

Thailand traveled a course unlike any other country in S.E. Asia during WW II.

Joined with Japan, Thailand also hoped that it might regain its former lands in Cambodia and Laos if the Allies were defeated.

Thailands declaration of war on the US came in 1942.45However, the Thai ambassador in Washington D.C., refused to deliver the declaration to the US government:

Therefore, the US never retaliated by declaring war on Thailand.

This strange event meant that the Allies never invaded Thailand.46During WW II, the monarchy secretly opposed Japan.

When King Phumiphon came to the throne in 1950, he promoted a pro-Western government.

This allowed the United States house troops in Thailand during Vietnam war.

A new constitution created in 1997 made Thailand much more democratic.

47Thailand had the worlds highest economic growth rate from 1985 to 1995.

Then suffered a brief, steep economic downturn during 1997 and 1998.

Steady growth has taken place since that time as political stability has enhanced Thailands economic opportunities.48

Political Geography of South-east Asia4949In democracy, governments ruled by the people help bring structure and popular support for the ruling parties elected to leadership.

In dictatorship, rule is by a select few individuals like the communist party that governs in a totalitarian manner. 50Rule of law is a vitally important idea in democracies; it means that no person is above the law.

Monarchy is another form of government, one in which a ruling family presides over the government.

Rule in this society passed from one generation to the next as kings, queens, sultans, or emperors. 51Types of government within the region range from military dictatorship in Burma to historical monarchies in Thailand and Brunei.

More details about status of Governments in Southeast Asia is on page 214.52Brunei Darusalam

Brunei has been under British rule for more than a century.

In 1984, Brunei achieved full independence. The sultan became prime minister.53Brunei gave supreme authority to sultan in the 1959 constitution.

The sultan received advice from five Primary Councils that are designated in constitution:The Religious Council,The Privy Council,The Council of Ministers,The Legislative Council, and The Council of Succession54The sultan stated in 1989 that he would liberalize Bruneis government if the people showed the potential to govern in a more democratic government.

Because of the relative prosperity of the people from oil revenues, there has been no significant political opposition to the rule of sultan since independence.55 CambodiaThe Kingdom of Cambodia fought for and achieved independence from France in 1953.

Like the rest of Indochina, Cambodia was occupied by Japan during WW II until the French regained power in 1945.

In 1970, Prince Sihanuok was thrown out off power in a military coup. 56In 1975, the county fell into the hands of the Khmer Rouge:Three million people are estimated to have died under the rule of Khmer Rouge.

In 1978, Vietnam invaded Cambodia.

In 1989, Vietnam withdrew from Cambodia.57Prince Sihanouk again rose to power to forge political agreement and to develop a more democratic framework for a new government.

Prince Sihanuok became a king after the new constitution was created in 1993.

Cambodian government consists of three branches and is a constitutional monarchy.58The king serves as the Chief of State, but he has no power in the government.

The 3 Branches:The Legislative Branch consists of a bicameral legislature:The National Assembly with 122 membersThe Senate with 61 membersThe Executive Branch is headed by the Prime Minister, who is a member of ruling political party of ruling coalition.59The Judicial Branch has the Supreme Court as the highest in the country.

Indonesia

The resent political roots of Indonesias government lie with Dutch and also in Japans wartime occupation of the country.

60With independence in 1945, Indonesias constitution established 3 Branches of Govt. that were based on five key elements advocated by first prime minister, Sukarno.

The five elements are called the five principles of Pancasila: God, Humanitarian, National Unity, Democracy, and Social Justice61The three Branches of Indonesian Govern:

The Executive Branch is led by the presidentThe Legislative Branch is a unicameral called Dewan Perwakilan (Peoples Representative Council)The Judicial Branch has the Supreme Court as the highest court.

62Indonesia also has two other bodies:

The Dewan Perwakilan Dearah (DPD), a body of regional representative.The Majelis Permusyawaratan Rakyat( MPR) or Peoples Consultative Assemply, which meets every five years to consider amending constitution,63 LaosLaos is one of the worlds few remaining Communists states.

The Laos Peoples Revolutionary Party is the name for Communists, and the party completely dominates political structure.

Laos has 3 Branches under the new constitution adopted in 1991. 64The three Branches of Laos Government:

The Executive Branch is led by the president, who serves as the head of state and the prime minister, who serves as the head of the government.The Legislative Branch called National Assembly with 109 members.The Peoples Supreme Court is the highest court in the country.65 MalaysiaMalaysia was formed in 1963 as a federation of various British colonies in the region that included Malaya, Sabah, Sarawak, and Singapore.

Singapore withdrew from the new country in 1965 and declared its independence.

The government of Malaysia is a constitutional monarchy.66The government operates with a monarch called the paramount ruler.

The paramount ruler serves as the chief of state, and the prime minister serves as the head of government.

Malaysia bicameral parliament represent the Legislative Branch.67The Senate, or Devan Negara, has 69 members.The House of Representative, or Devan Rakyat, has 219 members, who are elected by popular vote for a five-year term.

The Federal Court is the highest court in Malaysia, and its members are appointed by the paramount ruler with the council of the prime minister.68 BurmaBurma gained its independence from British in 1948.

Democratic foundations were established in the early years after independent.

Democracy in Burma was smashed under General Ne Wins rule and military control until 1988. 69In 1990, elections were held and an opposition party, led by Aung San Suu Kyi , won an overwhelming victory.

The election results were quashed by the military leaders, however, the newly elected leaders were placed under house arrest.

The country constitution has been suspended since 1988.70Thus Burma remains a military dictatorship where dissidents are routinely jailed and few freedoms exist for citizens.

The PhilippinesThe Philippines had two colonial masters:The United State gained control of the Philippines in 1898.Japan occupied the Philippines during WW II.71The country became independent in 1946 after being occupied by Japan.

The new constitution was adopted in 1973 by President Ferdinand Marcos.

Unfortunately, the new constitution was not democratic and it gave nearly unlimited powers to Marcos.72Politics began to change in the Philippines when Beningno Aquino, an important leader of the political opposition, was assassinated in 1983.

Corazon Aquino, widow of Beningno, declared herself the winner, when the reelected Marcos in 1986 was found corrupted and unfair. 73Marcos and his wife was forced to flee the country in 1986.

Corazon Aquino assumed the presidency and established a new constitution which was put into place in 1987 and provided for a more democratic government.

The constitution provides for a president who serves as the chief of state and the head of the government. 74The Philippines legislative branch consists of Congress made up of two houses: The House and the Senate:The Senate has only 24 members, who are elected for six-year terms.The House has 214 elected members, who serve three-year terms.The highest court in the Judicial Branch is the Supreme Court.75 SingaporeSingapore is perhaps best known for its unusual laws.

The other laws prohibit gum, littering, firecrackers, firearms, and smoking in public.

400 people were fined, in a recent year, a minimum of $500 (U.S.) for smoking in prohibited places.

76A person can receive the death penalty for having drugs or bringing firearms into Singapore.

Failure to flush a public toilet after use can bring a first-time offender a fine of $250.

All of these laws are designed to keep Singapore clean, and the laws are viewed very favorably by most citizens.77Singapores Legislative Branch, like the United Kingdoms, is called a parliament with 84 members elected for a five-year term.

Singapores parliament is a unicameral which has only one house, designated by the 1965 constitution.

The prime minister serves as the head of the government.78The prime minister is appointed by the president and is usually the head of the majority party or ruling coalition.

The president is the chief of state, elected in in a popular vote for a six-year term.

The Supreme Court is the highest court in Singapore, with members appointed by the president.79 ThailandThailand is a constitutional monarchy.

The monarchy in Thailand is hereditary, and the king serves as the chief of state.

The prime minister, who is appointed by the king, serves as the head of the government.80Thailands Legislative Branch is bicameral:The House of Representative or Sapha Phuthaen Ratsadon, with 500 members.The Senate or Wuthisapha, with 200 seats.

Members of both houses are elected by popular vote for four-year terms.

The highest court is the Supreme Court or Sandika. 81 VietnamThe socialist Republic of Vietnam, like Laos, is one of the few remaining communist states.

The constitution of Vietnam was adopted in 1992.

The president serves as the Chief of State, elected by unicameral National Assembly for a five-year term.82The prime minister serves as the Head of the Government in the Executive Branch.

The Communist Party of Vietnam (CPV) essentially runs the government because it is the only political party.

The National Assembly has 498 seats for five-year terms. 83Normally, 90 per cent of the seats filled by the CPV, and others are held by CPV-approved candidates.

The Supreme Peoples Court serves as the highest court in the Judicial Branch.84 Foreign Relations

Most countries in S.E. Asia are actively engaged in the International Community.

Some countries, such as Burma are more limited in their foreign relations because of the ruling military Junta.

85The UN and other organizations impose penalties or sanctions on regimes that do not comply with international standards.

All of the ten S.E. Asian nations have signed on Nuclear Non-proliferation Treaty and the Montreal Protocol on Substances that Deplete the Ozone Layer.

In late 2003, the Philippines, Indonesia, Malaysia, Singapore supplies personnel to various UN peacekeeping efforts around the world.86This involvement has been increasing in recent years and is a factor that contributes to the growth of democracies in the region.

Democracy has been on the rise in Southeast Asia since the second half of 20th century.

Many countries that have moved politically toward more democratic governments have found economic prosperity.87

Economic Geography of South-east Asia8888Tremendous changes have occurred in the economies of Southeast Asia since the end of WWII.

Economic process started slowly for many countries but was aided in 1967, with the formation of the Association of Southeast Asian Nations, or ASEAN.8989In Vietnam and Cambodia, the process took place later and delayed development until 1980s:the ravages of war and the folly of centrally controlled economies

Burma, afflicted by military rule and external economic sanction, is developing slowly even today, as a full member of ASEAN.

90Some countries have developed expertise in modern technology that places them among the worlds leaders in terms of computer hardware and access.

Some countries remain tied to agricultural production because government limitations have impeded the development of free market systems that have successful in other countries in the region.91The economy of Brunei falls into another category because the economy has depended on the production and exportation of oil and natural gas.

92A brief Survey of Individual Countrys Economies

BruneiExtremely dependent on oil and gas industry

The 3rd largest producer of oil in S.E. Asia

The 4th producer of natural gas in the world

Half of Bruneis exported oil goes to Japan

93The United States, Korea, Thailand, and Taiwan are also trade destinations.

Brunei is projected to have oil supplies to last until 2015.

The country hopes that deep sea exploration will identify new fields.94BurmaRich in natural resources: Petroleum, natural gas, coal deposits, and hydroelectric

Metal: Tin, antimony, zinc, copper, tungsten, and lead

Other products: Marble, precious stones, and timber

95Illegal drugs are believed to account for a significant, although undocumented, part of the economy.

CambodiaUntil 1999, Cambodia was torn by three decades of war.

Since the end of fighting, Cambodias economy has grown at a healthy annual rate, averaging more than 5 percent.96

Opium fruit exudingLatex from the cutTourism was the most rapidly gaining industry since 1999.

More than one third of the population lives below poverty line.

About 80 per cent of population is engaged in agriculture, producing mainly rice, corn, and vegetables. 97Most exported products go to the United States.

Germany, Japan, and the United Kingdom are other recipients of Cambodian goods.IndonesiaThe largest and most populated country in Southeast Asia is Indonesia, which has a long and well-chronicled history of trade with other lands.98Currently, the economy is mixed:AgricultureManufacturingService sectors

With labor costs low, it would seem likely that more foreign investors would flock into the country to start new industries and create jobs. 99Indonesia does have some strong advantages that favor economic growth.Huge stores of oil and natural gasOther natural resources: Tin, nickel, bauxite, and copper as well as deposits of gold and silver.

The country also has fertile soils, and agricultural crops are important to economy.100Rice serves as staple diet of Indonesians.

Other chief crops include: Peanuts, cassava, Soybeans, coffee, Tobacco, palm oil and rubber.

Tourism is most important part of Indonesias economy because of its beautiful tropical beaches and fascinating cultures.

101

LaosAs a communist country, Laos, like China, has made major efforts to decentralize its economy and support privatization.

Major agricultural products include food crops such as rice, sweet potatoes, vegetables, corn, and peanuts. 102Other crops include coffee, tobacco, and cotton.

Livestock include water buffalo, pigs, and cattle.

The country most important trade partners are neighboring Thailand and Vietnam. 103MalaysiaAt the turn of the millennium, Malaysia could boast of the worlds tallest buildingthe Petronas Twin Towersa fitting symbol of the countrys soaring economy.

Malaysia has blossomed into a diversified market economy with many strengths, including:well-developed electronics and information technologies

104Other important exports include petroleum, and natural gas, wood products, palm oil, rubber, textiles, and chemicals.

The country has a booming economy that supports low unemployment and relatively high income.

Malaysians have benefited greatly from their countrys economic growth.

105The factor contributes to the stability and trustworthiness that are essential for attracting foreign companies and other capital investment.

The PhilippinesThe country of the Philippines is fairly diverse: Agriculture, light industries, and a strong service sectors all contribute.106However, poverty is a large problem; about 40 percent of the population lives below the poverty level.

Unemployment is high, at about 10 percent.

The countrys products include: Rice, coconuts, corn, sugarcane, bananas, pineapple, and mangoes.107Major manufacturing products include: textiles, pharmaceuticals, chemicals, food processing, electronics assembly, and petroleum refining

The countrys recipients are The United States, Japan, Singapore, South Korea, and Taiwan.

The country is now attempting to privatize more of the economy.108SingaporeThis city-state boasts of being the worlds second-busiest port. Only Rotterdam in the Netherlands is more active.

Situated at the southern tip of the Malay Peninsular, the country possesses a key location for world trade.

109To its benefits, free trade has been a mainstay of the island country since Sir Thomas Stamford Raffles established a British trading post here in 1819.

The citizens of Singapore enjoy high wages, good jobs, and low unemployment

Market economy and political stability have created an outstanding environment for business to operate effectively.110Singapores major imports include: Food products, petroleum, and other natural resources.

The countrys major exports include:Machinery, equipment, electronics, consumer goods, and chemicals

Key trading partners include other ASEAN nations, notably Malaysia, as well as The U.S and China.111Singapore is also Southeast Asias major hub for international air transportation.

Many airlines use the countrys modern and efficient airport as a connection destination.

ThailandThis kingdom enjoys the worlds highest economic growth between 1985 and 1995.112Growth slowed with the Asian economic downturn in the late 1990s, but Thailands economy has rebounded strongly in the early twenty-first century.

Thailand has been able to develop a modern economy that produces a variety of goods and services.

It is a major producer of computers and electronic appliances.113Other industries include: Textiles and garments.

Agricultural processing include: Beverages, and tobacco, and light manufacturing.

Tourism is also a main factor contributed in Thailands economy, but it faced the devastation from the December 1994 tsunami.

114Slightly more than 10 percent of the population is engaged in agriculture.

Thailand has some oil reserves, but the country imports fuels and other raw materials for industrial use.

Major trading partners include: The United States, Japan, Singapore, China, and Malaysia.115 VietnamThe country suffers from a very high population density.

This factor, because of communist leadership, late reform of free-economic system, has hampered Vietnams growth.

In recent years, the economic growth rate has increased because of the connection to the outside world of free-market opportunities.116Nearly 40 percent of the population is below the poverty line.

25 percent is unemployed, and nearly two-third or the work force is still engaged in agriculture.

Because of a 2000 bilateral agreement with the United States, its economy has increased step by step.117The main exports include: Crude oil, rice, coffee, rubber, tea, garments, and shoes.

The man imports include: Machinery and equipment, petroleum, fertilizer, steel products, raw cotton, grain, and cement.

Vietnam major trading partners are the United States, Japan, Singapore, China, and South Korea.118

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