ECONOMIC OVERVIEW OF BANGLADESH & VIETNAM

Made by

AMIT CHATTERJEE
AMERICAN INTERNATIONAL UNIVERSITY OF
BANGLADESH

1
 ECONOMIC OVERVIEW OF BANGLADESH & VIETNAM
1. Overview of Economies:
BANGLADESH
Bangladesh is one of the independent
countries (get independence in 1971) of
the world. At present Bangladesh make a
good progress of economy. Bangladesh is
predominantly an agricultural economy,
with rice as the principal crop. There is
also a thriving ready-made garment
industry, with a workforce of nearly 2
million, 80 per cent of them women.
Garments account for nearly 70 per cent
of the country’s exports; however,
Bangladesh faces the challenge of losing
a guaranteed US market when quotas are
abolished in 2005. The country receives
development assistance of approximately
US$1.6 to US$1.8 billion per year and
this support has enabled Bangladesh to
make great progress, especially in child
survival and development through
providing safe drinking water,
immunization, primary education and
sanitation, and in promoting and
defending children’s rights. Poverty is
deep and pervasive in Bangladesh, with
44 per cent of the population living in
absolute poverty, defined as having an
income of less than US$1 per day. Over
the last decade, the country's Gross
Domestic Product (GDP) has grown by 5
per cent, though this has only helped to
reduce poverty by about 1 per cent per
year.
VIETNAM
The economic structure of Vietnam has
changed a great deal since the end of
warfare in the country in 1989, with
agriculture declining in importance from
40.8 percent of GDP in 1989 to 27.1
percent in 1999. Industry has gained
proportionally in importance, growing
from a percentage contribution of GDP in
1989 of 22.9 percent to 36.7 percent in
1999. During this period, the contribution
of the services sector remained virtually
unchanged at 36 percent. The annual
growth rates of these sectors show
similar trends, with agricultural growth
rates averaging 3.9 percent since 1995,
while industrial sector growth rates
averaged 11.4 percent over the same
period. These changes reflect the impact
of the doimoi economic renovation
policy. Despite these structural changes,
Vietnam remains an agricultural
economy in terms of employment.
Around 72 percent of Vietnam's labor
force, or approximately 28 million
individuals, is engaged in agriculture.
With its doi moi reform policy and the
goal of reducing the size of the public
sector, as of the late 1990s the state
sector employed only 9 percent of
Vietnam's labor force of 39 million.
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2. Facts and Figures:

ABOUT BANGLADESH ABOUT VIETNAM

Full name: People's Republic of Full name: Socialist Republic of

Bangladesh Vietnam

Short name: Bangladesh Short name: Vietnam

Population: 153,546,901 (July 2008 est.) Population: 86,116,559 (2008 est.)

Ethnic groups: Bengali 98%, tribal groups, Ethnic groups (2003): 54 groups
non-Bengali Muslims. including Vietnamese (Kinh) (85.73%),
Tay (1.97%), Thai (1.79%), Muong
Religions: Muslim 88.3%; Hindu 10.5%; C (1.52%), Khmer (1.37%).
hristian 0.3%, Buddhist 0.6%, others 0.3%.
Religions (2007): Buddhism (14.38%),
Languages: Bangla (official, also known a Catholic (6.9%), Cao Dai (2.8%),
s Bengali), English. Protestantism (1.75%), Hoa Hao (1.5%),
Islam (0.076%), Baha'i (0.007%), and
Area: 143,998 sq km (55,598 sq miles) other animist religions.

Population growth rate: 2.022% (2008 est.)Languages: Vietnamese (official),

English (increasingly favored as a second
language), some French, Chinese.
Education rate: 62.66%
Area: total: 329,560 sq km
Major religions: Islam, Hinduism
Population growth rate: 0.99% (2008
Life expectancy: 63&65(fe & ma). est.)

Education rate: 93.1%

Exchange rate: 1 taka = 100 paisa
Major religions: Buddhist.
Capital: Dhaka.
Life expectancy: 69.9 &65.0(fe & ma).
Currency name: Take
Exchange rate: 1 $=11699

Capital: Haina.

Currency name: Dom

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3. Geographical Comparison:

Bangladesh Vietnam

Geography Geography

Size: Total 144,000 square kilometers, Size: Approximately 331,688 square

land area 133,910 square kilometers. kilometers. Land area 325,360 sq km.

Topography: Broad deltaic plain. Topography: Hills and densely forested

Chittagong Hills in southeast, Low Hills
in northeast and modest-elevation
highlands in north and northwest.
Climate: Subtropical monsoon climate,
wide seasonal variations in rainfall,
moderately warm temperatures, high
humidity. Climate generally uniform
throughout entire country. Subject to
severe natural disasters, such as floods,
tropical cyclones, tornadoes, and tidal
bores.
mountains, with level land covering no
more than 20 percent. Mountains account
for 40 percent, hills 40 percent, and
forests 75 percent. North consists of
highlands and the Red River Delta; south
divided into coastal lowlands.
Climate: Tropical and monsoonal;
humidity averages 84 percent throughout
year. Annual rainfall ranges from 120 to
300 centimeters, and annual temperatures
vary between 5°C and 37°C.

4. Population:

Bangladesh Vietnam

World Percent World Percent

Year Population Year Population
Rank Change Rank Change
200 200
138,448,210 8 D/A 81,624,716 14 D/A
3 3
200 200
144,319,628 7 4.24 % 83,535,576 13 2.34 %
4 4
200 200
144,319,628 7 0.00 % 83,535,576 13 0.00 %
5 5
200 200
147,365,352 7 2.11 % 84,402,966 13 1.04 %
6 6
200
Data source: http (www.indexmundi.com)

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 5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .1. Percentage change of population 2004-2008

This is the comparison of two countries percentage of change of population year to year.
It gives us the idea Bangladesh population change rate is higher than Vietnam.

5. Components of GDP (Gross domestic product):

5.1 Real GDP:

Bangladesh Vietnam

GDP - real growth rate: 6% (2007 GDP - real growth rate: 8.5%
est.) (2007 est.)

GDP - real growth Year GDP - real growth rate Rank

Year Rank
rate
200
200 6.00 % 22
4.40 % 51 3
3
200
200 7.20 % 23
5.30 % 48 4
4
200
200 7.70 % 27
4.90 % 84 5
5
200
200 8.50 % 23
6.40 % 50 6
6
Data source: http (www.indexmundi.com)

5
 10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .2. GDP - Real growth rate 2003-2008

5.2 Per capita GDP

Bangladesh GDP - per capita (PPP) Vietnam GDP - per capita (PPP)

GDP - per capita (PPP): $1,400 (2007 GDP - per capita (PPP): $2,600 (2007
est.) est.)

Definition: This entry shows GDP on a Definition: This entry shows GDP on a
purchasing power parity basis divided by purchasing power parity basis divided
population as of 1 July for the same year. by population as of 1 July for the same
year

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Table

Year PPP % Change Year PPP % Change

2001 884.635 5.29 % 2001 1533.466 8.00 %

2002 925.61 4.63 % 2002 1648.88 7.53 %

2003 980.968 5.98 % 2003 1781.396 8.04 %

2004 1052.794 7.32 % 2004 1949.43 9.43 %

2005 1132.841 7.60 % 2005 2139.93 9.77 %

2006 1221.157 7.80 % 2006 2354.729 10.04 %

2007 1299.695 6.43 % 2007 2586.625 9.85 %

2008 1373.637 5.69 % 2008 2792.177 7.95 %

Data source: http (www.indexmundi.com)

12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2001 2002 2003 2004 2005 2006 2007 2008

Bangladesh Vietnam

Fig .3. GDP –Per capita 2003-2008

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5.3 GDP official exchange rate (Nominal):

Bangladesh GDP (official Vietnam GDP (official exchange

exchange rate) rate)

GDP (official exchange rate): $70.6 GDP (official exchange rate): $66.4
billion (2007 est.) billion (2007 est.)

Definition: This entry gives the gross
domestic product (GDP) or value of all
final goods and services produced
within a nation in a given year. A
nation's GDP at offical exchange rates
(OER) is the home-currency-
denominated annual GDP figure divided
by the bilateral average US exchange
rate with that country in that year.
Definition: This entry gives the gross
domestic product (GDP) or value of all
final goods and services produced within a
nation in a given year. A nation's GDP at
offical exchange rates (OER) is the home-
currency-denominated annual GDP figure
divided by the bilateral average US
exchange rate with that country in that
year.

Year GDP curr.p % Chang Year GDP curr.p % Chang

2001 47.194 0.31 % 2001 32.504 4.19 %

2002 49.56 5.01 % 2002 35.148 8.13 %

2003 54.476 9.92 % 2003 39.63 12.75 %

2004 59.12 8.52 % 2004 45.548 14.93 %

2005 61.127 3.39 % 2005 53.053 16.48 %

2006 64.854 6.10 % 2006 60.995 14.97 %

2007 72.424 11.67 % 2007 70.022 14.80 %

2008 80.509 11.16 % 2008 81.328 16.15 %

8
5.4 GDP purchasing power parity

Bangladesh GDP (purchasing Vietnam GDP (purchasing power

power parity) parity)

GDP (purchasing power parity): $209.2 GDP (purchasing power parity): $222.5
billion (2007 est.) billion (2007 est.)

Definition: This entry gives the gross Definition: This entry gives the gross
domestic product (GDP) or value of all domestic product (GDP) or value of all
final goods and services produced final goods and services produced within a
within a nation in a given year. nation in a given year.

GDPBased GDP-Based Percent

Percent
Year Year
Change
On PPP On PPP Change

2004 158.475 9.35 % 200

159.916 10.96 %
4
2005 173.643 9.57 %
200
178.073 11.35 %
2006 190.643 9.79 % 5

2007 206.658 8.40 % 200

198.742 11.61 %
6
2008 222.412 7.62 %
200
221.397 11.40 %
7

15.00%

10.00%

5.00%

0.00%
2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

9
 Fig .4. GDP –PPP 2003-2008
5.5 Trade

Vietnam:
Bangladesh:
Foreign Trade: Exports totaled US$739.5
Foreign trade: Approximately US$819
million in 1986. Principal exports
million in FY 1986. Raw jute and jute
consisted of coal, rubber, rice, tea, coffee,
manufactures, frozen seafood, ready-
wood, and marine products. Imports
made garments, tea, and leather goods.
totaled US$2.5 billion in 1986. Principal
United States, Japan, and Britain largest
imports consisted of petroleum products,
buyers.Approximately US$2.4 billion in
fertilizers, rice, and steel. In 1986 total
FY 1986. Food grains, fuels, raw cotton,
debt estimated at nearly US$7.7 billion.
fertilizer, and manufactured products.
According to figures given to
Singapore, Japan, and United States
International Monetary Fund by Hanoi,
largest suppliers.
from 1981-85 Vietnam's debt to
communist bloc countries rose from
US$3 billion to more than US$6 billion..

5.5.1 Export

Bangladesh Exports Vietnam Exports

Exports: $11.25 billion (2007 est.) Exports: $48.3 billion f.o.b. (2007 est.)

Exports - commodities: garments, jute Exports - commodities: crude oil, marine

and jute goods, leather, frozen fish and products, rice, coffee, rubber, tea,
seafood garments, shoes.

Exports - partners: US 24.9%, Germany Exports - partners: US 21.2%, Japan

12.8%, UK 9.8%, France 5% (2006). 12.3%, Australia 9.4%, China 5.7%,
Germany 4.5% (2006).
Year Exports Rank
200 Year Exports Rank
$6,200,000,000 70
3 200
$16,500,000,000 49
200 3
$6,713,000,000 71
4 200
$19,880,000,000 51
200 4
$7,478,000,000 76
5 200
$23,720,000,000 51
200 5
$9,372,000,000 74
6 200
$32,230,000,000 51
200 6
$11,170,000,000 76
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Data source: http (www.indexmundi.com)

60000000000
50000000000
40000000000
30000000000
20000000000
10000000000
0
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .5. Export 2003-2008

Bangladesh: Vietnam:

Bangladesh exports 167 commodities
to 186 countries; in 1984-85, export
was less than $1.0 billion. This shot up
to $8.7 billion in 20 years in 2004-05,
and 12.18 billion in 2006-07.Major
export commodities are: RMG, frozen
food, leather, raw jute, jute goods,
home textile. These 6 products together
accounts for about 90% of the total
export of Bangladesh. Last 2 decades
witnessed phenomenal rise in exports
led by readymade garments (RMG).
RMG industry grew under the
protection of MFA quota, duty-free
access to EC and other developed
countries and supportive policy reforms
undertaken by GOB;RMG is the largest
manufacturing sector in terms of
income & employment.
Total export in first eight months has
reached 6.1 bil. US$ (+40.6% yoy). In last
July, the big amounts of gold and crude
steels were re-exported about 2.bil. US$.
From year to date, total export revenues
have reached to 43.3 bil US$ (+39.1%
yoy). The contribution is from Local
Enterprise: 45% (+43.9% yoy), FDI:
36.4% (+28% yoy), Crude Oil: 18.6%
(+53.3%).
There are ten products's export revenues
over 1 billion US$: Crude oil, Textile and
Garment, Footwear, Aquatic Products,
Rice, Wood Products, PC Electronics,
Coffee, Rubber and Anthracite.

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5.5.2 Imports

Bangladesh imports: Vietnam imports:

Imports: $14.91 billion (2007 est.) Imports: $60.75 billion f.o.b. (2007 est.)

Imports - commodities: machinery and Imports - commodities: machinery and

equipment, chemicals, iron and steel, equipment, petroleum products, fertilizer,
textiles, foodstuffs, petroleum products, steel products, raw cotton, grain, cement,
cement. motorcycles.

Imports - partners: China 17.7%, India Same data not available

12.5%, Kuwait 7.9%, Singapore 5.5%,
Hong Kong 4.1% (2006)

Year Imports Rank Year Imports Rank

200 200
$8,500,000,000 65 $16,800,000,000 46
3 3
200 200
$9,459,000,000 65 $22,500,000,000 45
4 4
200 200
$10,030,000,000 67 $26,310,000,000 47
5 5
200 200
$12,970,000,000 66 $36,880,000,000 45
6 6
200 200
$13,770,000,000 70 $39,160,000,000 46

70000000000
60000000000
50000000000
40000000000
30000000000
20000000000
10000000000
0
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .6. Import 2003-2008

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5.5.3 Export Destinations

Vietnam
Bangladesh

Fig .7. Export destination

5.5.4 Trade openness of Bangladesh

Year 2004 2005 2006 2007

Export 448.1 532.3 699.1 841.0
Import 642.6 808.9 892.2 1070.8
GDP 2519.7 2669.7 2846.7 3032.1
Trade openness (%) 43.28 50.23 55.89 63.05
Data source: Ministry of finance.

Bangladesh

80.00%
60.00%
40.00%
20.00%
0.00%
2004 2005 2006 2007
Year

Bangladesh

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 Fig .8.Trade Openness 2004-2008
5.6 Investment
5.6.1 Foreign Direct Investment:
Bangladesh:
The issue of Foreign Direct Investment
(FDI) has been receiving phenomenal
attention from many governments.
Bangladesh is not lagging behind from it.
Economic development for the developing
countries like Bangladesh is largely
dependent on FDI. The major challenges
for the host country are to ensure an eye-
catching and conducive investment climate
to foreign investors for FDI inflow. In
recent years, Bangladesh has been devoting
efforts for attracting FDI offering a lot of
lucrative incentives and benefits. Though
attempts taken to increase FDI inflow, the
result achieved is not appreciable enough
for Bangladesh. This paper will portray the
FDI inflow since 1995 and finds out causes
and reasons of low-inflow based on
secondary data. It also finds out the
impediments and highlighted prospects for
FDI in Bangladesh and provides some
recommendations for its enhancements
5.6.2 Human capital Investment (Education):
Bangladesh:
Education: Schools based on British
system: five years primary, five years
lower secondary, and two years higher
secondary. Higher education includes
758 general colleges, 7 universities, and
50 professional colleges. Traditional
emphasis on arts and humanities;
increased emphasis in late 1980s on
technical subjects. Numerous religious-
affiliated primary schools. In 1988
national literacy rate officially 29
percent, possibly lower; men 39 percent,
women 18 percent; urban 35 percent,
rural 17 percent.
Vietnam:
Vietnam’s investment planners are
forecasting a massive surge in the
foreign direct investment capital on the
back of the country’s recent diplomatic
successes. According to a survey
conducted by the Asian Business
Council, Vietnam ranked third for
investment attraction among Asian
nations in the 2007-2009 period, after
China and India. Foreign direct
investment (FDI) is the direct
ownership of operating facilities in
Vietnam. Direct ownership provides a
high degree of control in the operations
and the ability to better understand the
consumers and competitive
environment. IFI is an expert in FDI
investments with a track record that
spans 14 years in Vietnam. Moreover,
Vietnam proprietary network of
functional support services will help
you succeed where other venture fails
Vietnam:
Education and Literacy: Nine years of
primary and junior high school, three
years of secondary school. First nine
years compulsory. Manual labor
comprises 15 percent of primary
curriculum and 17 percent of secondary.
Ninety-three colleges and universities,
with close to 130,000 students enrolled,
able to admit only 10 percent of
applicants. Education emphasizes
training of skilled workers, technicians,
and managers. Students nevertheless tend
to avoid vocational schools and 14
specialized middle schools because they
are believed to preclude entry to high-
status occupations.
5.6.3 Industrial production growth rate

Bangladesh: Vietnam:

Industrial production growth rate: 9.5% Industrial production growth rate: 17.1%
(2007 est.) (2007 est.)

Industrial Industrial
Year production Year production
growth rate growth rate
2003 1.80 % 200
10.20 %
2004 1.90 % 3
2005 6.50 % 200
16.00 %
4
2006 6.70 %
200
2007 7.20 % 16.00 %
5
2008 9.50 % 200
17.20 %
6
200
11.30 %
7
Data source: http (www.indexmundi.com)

20.00%
15.00%
10.00%
5.00%
0.00%
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .9. Industrial production growth rate 2003-2008

15
Vietnam Industrial production growth rate is grater than the Bangladesh industrial
production growth rate.
6. Inflation:

Bangladesh Vietnam

Inflation rate (consumer prices): Inflation rate (consumer prices):

8.8% (2007 est.) 8.3% (2007 est.)

Inflation Inflation
rate rate
Year Rank Year Rank
(consumer (consumer
prices) prices)
2003 3.10 % 117 2003 3.90 % 91
2004 5.60 % 67 2004 3.10 % 115
2005 6.00 % 160 2005 9.50 % 189
2006 7.00 % 160 2006 8.30 % 175
2007 7.20 % 163 2007 7.50 % 166
2008 8.80 % 180 2008 8.30 % 174

10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .10. Inflation rate comparison 2003-2008

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7. Unemployment:

7.1Unemployment rate:

Bangladesh: Vietnam:

Unemployment rate: 2.5% (includes Unemployment rate: 5.1% (2007 est.)

underemployment) (2007 est.)

Unemployment Unemployment
Year Rank Year Rank
rate rate
200 200
40.00 % 12 25.00 % 34
3 3
200 200
40.00 % 14 6.10 % 135
4 4
2005 40.00 % 178 200
1.90 % 12
200 5
2.50 % 22
6 200
2.40 % 21
200 6
2.50 % 23
7 200

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2003 2004 2005 2006 2007 2008
Year

Bangladesh Vietnam

Fig .11. Unemployment growth rate 2003-2008

17
7.2 Labor force:

Bangladesh Labor force - by Vietnam Labor force - by

occupation occupation
Agriculture: 63% Agriculture: 55.6%
Industry: 11% Industry: 18.9%
Services: 26% (FY95/96) Services: 25.5% (July 2005)

80%
60%
40%
20%
0%
Agriculture Industry Services
Sector

Bangladesh Vietnam

Fig .12. Labor force-by occupation

8. Important Sector:

8.1 Transportation:

Bangladesh: Vietnam
8.1 Transportation:
Roads: About 10,890 kilometers of Roads: Some 85,000 kilometers of road; of
motorable roads in 1986. Despite which 9,400 kilometers paved, 48,700
severe flooding, increasingly kilometers gravel or improved earth, and
important means of moving 26,900 kilometers unimproved
people and goods. Extensive
network of bridges and ferries
cross numerous inland Railroads: Total of 4,250 kilometers of
waterways. track. Most important section connects
Hanoi and Ho Chi Minh City. 18
Railroads: About 2,818 kilometers of
track in 1986. Operated by
Bangladesh Railways, declining
numbers of rolling stock as 1980s

Rivers: Extensive and complex network
of some 700 rivers. Major
systems Jamuna-Brahmaputra,
Padma-Ganges, Surma-Meghna,
and Padma-Meghna, all of which
flow south to Mouths of the
Ganges and into Bay of Bengal.
Fifth major system Karnaphuli in
Chittagong region. Primary
transportation system employing
nearly 300,000 small and
medium-sized sail-and human-
powered country boats. About
8,430 kilometers of navigable
waterways
Ports: Chittagong and Chalna major
freight-handling ports.
Airports: Largest near Dhaka (Zia
International Airport) and at Chittagong
and Sylhet. National carrier Biman
Bangladesh Airlines serving twenty-four
cities in twenty countries; domestic
8.2 Agriculture and Industry:
Bangladesh:
Most Bangladeshis earn their living from
agriculture. Although rice and jute are
the primary crops, maize and vegetables
are assuming greater importance. Due to
the expansion of irrigation networks,
some wheat producers have switched to
cultivation of maize which is used mostly
as poultry feed. Tea is grown in the
northeast. Because of Bangladesh's fertile
soil and normally ample water supply,
rice can be grown and harvested three
times a year in many areas
Maritime Shipping: 125 vessels, including
80 coastal freighters, 12 oil tankers, and 15
ocean-going freighters. Total of thirty-two
ports, of which nine major ports. Three
largest located at Da Nang, Haiphong, and
Ho Chi Minh City.
Civil Aviation: Controlled by military.
Domestic air service connects Hanoi with
Ho Chi Minh City, Da Nang, Pleiku, Da
Lat, Buon Me Thuot, Phu Bai and Nha
Trang. Ho Chi Minh City also connected to
Rach Gia, Phu Quoc and Con Son Island.
International air service connects Hanoi
with Vientiane, Phnom Penh, Moscow, and
Bangkok. Total of 128 usable airfields, 46
with surfaced runways.
Telecommunications: Two satellite-ground
communications stations linking Hanoi, Ho
Chi Minh City, and Moscow, and
integrating Vietnam into Soviet
Intersputnik Communication Satellite
Organization
Vietnam:
Land reform, de-collectivization, and the
opening of the agricultural sector to
market forces converted Vietnam from a
country facing chronic food shortages in
the early 1980s to the second-largest rice
exporter in the world. Besides rice, key
exports are coffee, tea, rubber, and
fisheries products. Agriculture's share of
economic output has declined, falling as
a share of GDP from 42% in 1989 to
20.25% in 2007, as production in other
sectors of the economy has risen. 19
 Due to a number of factors, Bangladesh's
labor-intensive agriculture has achieved
steady increases in food grain production
despite the often unfavorable weather
conditions. These include better flood
control and irrigation, a generally more
efficient use of fertilizers, and the
establishments of better distribution and
rural credit networks.Fortunately for
Bangladesh, many new jobs--1.8 million,
mostly for women--have been created by
the country's dynamic private ready-
made garment industry, which grew at
double-digit rates through most of the
1990s. The labor-intensive process of
ship-breaking for scrap has developed to
the point where it now meets most of
Bangladesh's domestic steel needs. Other
industries include sugar, tea, leather
goods, newsprint, pharmaceutical, and
fertilizer production. The country has
done less well, however, in expanding its
export base--garments account for more
than three-fourths of all exports,
dwarfing the country's historic cash crop,
jute, along with leather, shrimp and
ceramics.
8.3 Economy
Bangladesh
Agriculture: Large-scale subsistence
farming, labor intensive, heavily dependent
on monsoon rains. Main crops rice, jute,
wheat, tea, and forestry products. Fisheries
of increasing importance.
Industry: Jute manufactures, ready-made
garments, cotton textiles, seafood
processing, and pharmaceuticals.
Services: Substantial exported labor,
primarily to Persian Gulf nations. As many
as 450,000 Bangladeshis abroad in 1987;
important source of foreign currency
remittances.
Paralleling its efforts to increase
agricultural output, Vietnam's industrial
production has grown. Industry and
construction contributed 41.6% of GDP
in 2007, up from 27.3% in 1985.
Vietnam has successfully increased
exports of manufactured goods,
especially labor-intensive manufactures,
such as textiles and apparel and footwear.
Subsidies have been cut to some
inefficient state enterprises. The
government is also in the process of
"equitizing" (e.g., transforming state
enterprises into shareholding companies
and distributing a portion of the shares to
management, workers, and private
foreign and domestic investors) a
significant number of state enterprises.
However, to date the government
continues to maintain control of the
largest and most important companies.
Despite reforms, the state share of GDP
has remained relatively constant since
2000, at 38-39%.
Vietnam
Agriculture: Major agricultural
products produced in 1985: grain (18.2
million tons), sugar (434,000 tons), tea
(26,000 tons), coffee (6,000 tons), and
rubber (52,000 tons). Agriculture
represented 51 percent of PNI.
Industry: Thirty-two percent of PNI in
1985; major industries included
electricity (5.4 billion kilowatt hours),
coal (60 million tons), steel (57,000
tons), cement (1.4 million tons), cloth
(80 million square meters), paper
(75,000 tons), fish sauce (174 million 20
liters), and processed sea fish (550,000
tons).
9. Country overview:
9.1 Government and politics:
Bangladesh
Government: Presidential form of
government with popularly elected
president and appointed prime minister.
1972 Constitution amended numerous
times to reflect new political realities.
Unicameral Parliament (known as Jatiyo
Sangsad, or House of the People) with 300
members. Elections held in March 1988.
Politics: Authoritarian or military
regimes have run Bangladesh almost
since its inception. Regime in power
traditionally controls government and
Parliament through single national
political party: under Sheikh Mujibur
Rahman (1972-75), the Awami League
(People's League); under Ziaur Rahman
(1977-81), the Bangladesh Nationalist
Party; and under Hussain Muhammad
Ershad (since 1982), the Jatiyo Party
(National Party). Numerous opposition
parties joined periodically in fractious
alliances against party in power. In 1988
most important were Awami League,
centrist Bangladesh Nationalist Party,
leftist Jatiyo Samajtantrik Dal (National
Socialist Party), and conservative, pro-
Islamic Jamaat e Islami (Congregation of
Islam). Student and workers' wings of
these and other parties important players
in national politics.
Justice: Supreme Court headed by chief
justice. Two Supreme Court divisions:
High Court Division with seven regional
benches, and Appellate Division in
Dhaka. Grass-roots judicial system at
village level. British-style criminal codes.
Vietnam
Party and Government: Democratic
Republic of (North) and former Republic
of (South) Vietnam united to form
Socialist Republic of Vietnam on July 2,
1976. Constitution adapted in 1980
stipulates National Assembly as highest
governing body. Members serve five-
year terms and nominally directly elected
by electorate. Council of State, which
serves as collective presidency, and
Council of Ministers, which manages
governmental activities, nominally
accountable to, and elected by, National
Assembly. Political power effectively in
hands of Vietnamese Communist Party
(VCP, Viet Nam Cong San Dang). Most
government positions filled by party
members, who act at direction of party.
Party led by National Party Congress,
which meets infrequently.
Administrative Divisions: Country
divided into thirtysix provinces, three
autonomous municipalities, and one
special zone. Provinces divided into
districts, towns, and capitals.
Judicial System: Supreme People's
Court; local People's Courts at provincial,
district, and city levels; military
tribunals; and People's Supreme Organ of
Control. National Assembly elects
Procurator General, who heads People's
Supreme Organ of Control and performs
overall administration of justice.
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9.2 Foreign Affairs:
Bangladesh: Heavily dependent on
massive infusions of foreign
development aid, Bangladesh maintains
neutral policy. Maintains friendly
relations with United States, Soviet
Union, and China; close relations with
Muslim nations; and proper but watchful
relations with neighboring India.
Member of Afro-Asian People's
Solidarity Organization, Asian
Development Bank, Colombo Plan,
Commonwealth of Nations, Customs
Cooperation Council, Group of 77,
International Bank for Reconstruction
and Development, International Olympic
Committee, International Rice Council.
9.3 Government types:
Government:
Type: Parliamentary democracy.
Independence: 1971 (from Pakistan).
Constitution: 1972; amended 1974,
1979, 1986, 1988, 1991, 1996, 2004.
Branches: Executive--president (chief of
state), prime minister (head of
government), cabinet. Legislative--
unicameral Parliament (345 members).
Judicial--civil court system based on
British model.
Administrative subdivisions: Divisions,
districts, subdistricts, unions, villages.
Political parties: 30-40 active political
parties. Largest ones include Bangladesh
Nationalist Party (BNP), the Awami
League (AL), the Jatiya Party, and the
Jamaat-e-Islami Party.
Suffrage: Universal at age 18.
Vietnam: Vietnam dominated Laos
through numerous Hanoi-dictated
cooperation agreements; most
important-- Treaty of Friendship and
Cooperation signed in 1977. Occupied
Cambodia as result of military conquest
in January 1979 and subsequently
negotiated Treaty of Friendship and
Cooperation. Relations with China
marked by China's limited invasion in
1979 and frequent border skirmishes.
Formally aligned with Soviet Union
through Treaty of Friendship and
Cooperation signed in November 1978.
Both countries shared membership in
Council for Mutual Economic Assistance
Soviet Union largest donor of economic
and military aid.
Government:
Type: Communist Party-dominated
constitutional republic.
Independence: September 2, 1945.
New constitution: April 15, 1992.
Branches: Executive--president (head of
state and chair of National Defense and
Security Council) and prime minister
(heads cabinet of ministries and
commissions). Legislative--National
Assembly. Judicial--Supreme People's
Court; Prosecutorial Supreme People's
Procuracy.
Administrative subdivisions: 59
provinces, 5 municipalities (Can Tho,
Haiphong, Danang, Hanoi, Ho Chi Minh
City).
Political party: Communist Party of
Vietnam (CPV) with over 3 million
members, formerly (1951-76) Vietnam 22
Worker's Party, itself the successor of the
Indochinese Communist Party founded in
1930.
Suffrage: Universal over 18.
9.4 Budget and Central Bank name:

BANGLADESH
Revenues: $5.352 billion
Expenditures: $7.55 billion, including
capital expenditures of NA (2004 est.)
Central Bank: Bangladesh Bank.
VIETNAM
Revenues: $8.689 billion
Expenditures: $9.718 billion, including
capital expenditures of $1.8 billion (2003
est.)
Central Bank: State Bank of Vietnam.

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10. Conclusion:

BANGLADESH
Although one of the world's poorest and most densely populated countries, Bangladesh
has made major strides to meet the food needs of its increasing population, through
increased domestic production augmented by imports. The land is devoted mainly to rice
and jute cultivation, although wheat production has increased in recent years; the country
is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the
population faces serious nutritional risk. Bangladesh's predominantly agricultural
economy depends heavily on an erratic monsoonal cycle, with periodic flooding and
drought. Although improving, infrastructure to support transportation, communications,
and power supply is poorly developed. Bangladesh is limited in its reserves of coal and
oil, and its industrial base is weak. The country's main endowments include its vast
human resource base, rich agricultural land, relatively abundant water, and substantial
reserves of natural gas. The IMF and World Bank predict GDP growth over the next 5
years will be about 6.0%, well short of the 8%-9% needed to lift Bangladesh out of its
severe poverty. Since independence in 1971, Bangladesh has received more than $30
billion in grant aid and loan commitments from foreign donors, about $15 billion of
which has been disbursed. Major donors include the World Bank, the Asian Development
Bank, the UN Development Program, the United States, Japan, Saudi Arabia, and west
European countries.

VIETNAM
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. From 2004 to 2007, GDP grew over 8% annually. Foreign
trade and foreign direct investment have improved significantly. Average annual foreign
investment commitment has risen sharply since foreign investment was authorized in
1988, and in 2007 Vietnam licensed $17.86 billion in foreign direct investment. Actual
investment in that year totaled $4.60 billion. From 1990 to 2005, agricultural production
nearly doubled, transforming Vietnam from a net food importer to the world's second-
largest exporter of rice. Exports in 2007 were a historic $48.39 billion, but Vietnam's
need for capital goods, construction materials, refined fuel, and primary material for
exports meant that it ran a trade deficit of $12.4 billion. The shift away from a centrally
planned economy to a more market-oriented economic model improved the quality of life
for many Vietnamese. Per capita income rose from $220 in 1994 to $832 in 2007.

THE END

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