fshore financial center. In mid-2002 the
government stepped up efforts to boost tourism. Agriculture,
especially livestock farming, is a second target for growth.
Australia and New Zealand are the main suppliers of tourists and
foreign aid. Growth expanded moderately in 2003.

Venezuela
Venezuela continues to be highly dependent on the
petroleum sector, which accounts for roughly one-third of GDP,
around 80% of export earnings, and more than half of government
operating revenues. Despite higher oil prices at the end of 2002 and
into 2003, domestic political instability, culminating in a
disastrous two-month national oil strike from December 2002 to
February 2003, temporarily halted economic activity. The economy
remained in depression in 2003, declining by 9.2% after an 8.9% fall
in 2002. In late 2003, President CHAVEZ committed himself to $1
billion in new social programs, money the government does not have.

Vietnam
Vietnam is a poor, densely-populated country that has had to
recover from the ravages of war, the loss of financial support from
the old Soviet Bloc, and the rigidities of a centrally-planned
economy. Substantial progress was achieved from 1986 to 1996 in
moving forward from an extremely low starting point - growth
averaged around 9% per year from 1993 to 1997. The 1997 Asian
financial crisis highlighted the problems in the Vietnamese economy,
but rather than prompting reform, reaffirmed the government's belief
that shifting to a market-oriented economy would lead to disaster.
GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in 1999. Growth
then rose to 6% to 7% in 2000-02 even against the background of
global recession. These numbers mask some major difficulties in
economic performance. Many domestic industries, including coal,
cement, steel, and paper, have reported large stockpiles of
inventory and tough competition from more efficient foreign
producers. Since the Party elected new leadership in 2001,
Vietnamese authorities have reaffirmed their commitment to economic
liberalization and have moved to implement the structural reforms
needed to modernize the economy and to produce more competitive,
export-driven industries. The US-Vietnam Bilateral Trade Agreement
entered into force near the end of 2001 and is expected to
significantly increase Vietnam's exports to the US. The US is
assisting Vietnam with implementing the le