lanned economy. Substantial progress was achieved from
1986 to 1997 in moving forward from an extremely low level of
development and significantly reducing poverty. Growth averaged
around 9% per year from 1993 to 1997. The 1997 Asian financial
crisis highlighted the problems in the Vietnamese economy and
temporarily allowed opponents of reform to slow progress towards a
market oriented economy. GDP growth of 8.5% in 1997 fell to 6% in
1998 and 5% in 1999. Growth then rose to 7% in 2000-04 even against
the background of global recession. Since 2001, however, Vietnamese
authorities have reaffirmed their commitment to economic
liberalization and international integration. They have moved to
implement the structural reforms needed to modernize the economy and
to produce more competitive, export-driven industries. However,
equitization of state-owned enterprises and reduction in the
proportion of non-performing loans has fallen behind schedule.
Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry
into force of the US-Vietnam Bilateral Trade in December 2001 have
led to even more rapid changes in Vietnam's trade and economic
regime. Vietnam's exports to the US doubled in 2002 and again in
2003. Vietnam is working toward accession to the WTO in 2005. Among
other benefits, accession will allow Vietnam to take advantage of
the phase out of the Agreement on Textiles and Clothing, which
eliminated quotas on textiles and clothing for WTO partners on 1
January 2005. Vietnam is working to promote job creation to keep up
with the country's high population growth rate. However, in 2004,
high levels of inflation prompted Vietnamese authorities to tighten
monetary and fiscal policies.

GDP (purchasing power parity):
$227.2 billion (2004 est.)

GDP - real growth rate:
7.7% (2004 est.)

GDP - per capita:
purchasing power parity - $2,700 (2004 est.)

GDP - composition by sector:
agriculture: 21.8%
industry: 40.1%
services: 38.1% (2004 est.)

Labor force:
42.98 million (2004 est.)

Labor force - by occupation:
agriculture 63%, industry and services 37% (2000 est.)

Unemployment rate:
1.9% (2004 est.)

Population below poverty line:
28.9% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 29.9% (1998)

Distribution of family income - Gini index:
36.1 (1998)

Inflation rate (consumer p