I) Introduction:1) Vietnam:Location, Geography, & ClimateShaped like an elongatedS, Vietnam stretches the length of the Indochinese Peninsula and covers a surface area of 128,000 square miles--making it roughly the size of Italy or, in the U.S., New Mexico. China lies to the north, Laos and Cambodia to the west, and the South China Sea to the east.Topographically, Vietnam is a verdant tapestry of soaring mountains, fertile deltas, primeval forests inhabited by exotic fauna, sinuous rivers, mysterious caves, otherworldly rock formations, and heavenly waterfalls and beaches. Beyond nature, the curious and open-minded visitor will find in Vietnam a feast of culture and history.For convenience, the country can be thought of as comprising three unique areas: north, central, and south. The north is known for its alpine peaks, the Red River Delta, the plains of Cao Bang and Vinh Yen, enchanting Halong Bay, and historicHanoi,as well as for the diversity of its ethnolinguistic minorities.Central Vietnam, also home to many ethnic minorities, is characterized by high temperate plateaus rich in volcanic soil and by spectacular beaches, dunes, and lagoons. It is also the location of the ancient imperial city of Hue. In the South, visitors encounter modern life in Ho Chi Minh City (formerly Saigon) and the fertile alluvial delta of the Mekong River. Vietnam's territory also encompasses a large continental shelf and thousands of archipelagic islands.Vietnam's climate is as complex as its topography. Although the country lies entirely within the tropics, its diverse range of latitude, altitude, and weather patterns produces enormous climatic variation. North Vietnam, like China, has two basic seasons: a cold, humid winter from November to April, and a warm, wet summer for the remainder of the year. Summer temperatures average around 70 degrees Fahrenheit (about 22 C), with occasional typhoons to keep things exciting. The northern provinces of Central Vietnam share the climate of the North, while the southern provinces share the tropical weather of the South.South Vietnamis generally warm, the hottest months being March through May, when temperatures rise into the mid-90's (low-30's C). This is also the dry season in the south, followed by the April-October monsoon season.2) Thailand:Location, Geography & ClimateThailand is the geographical heart of South-East Asia. The infamous golden triangle, located at the nation's northernmost point, is where Thailand's borders meet those of both Laos and Myanmar (Burma). The border with Myanmar continues to the west and then south as far as the Malay peninsula, much of which is occupied by Thailand. On the east, the border with Laos meanders southeast along the Mekong River until it reaches Cambodia, which is due east of Bangkok, the Thai Capital. In the south is the Gulf of Thailand. Roughly the size of France (200,000 sq. miles), Thailand is composed of four main regions. The northern mountainous region contains numerous ruins and temples, the ancient city of Chieng Mai, and Thailand's highest peak,Doi Inthanon. This region is also home to thehill tribes of Thailand, distinct ethnic groups which settled in the area thousands of years ago after migrating from as far away as Tibet and central China. The north-east of Thailand occupies the semi-arid Korat plateau, the most desolate and least-visited part of the country. An interesting blend of Thai, Lao, and Khmer influences characterise the culture of the Korat. Central Thailand, which consists of the fertile plains surrounding the Chao Phraya River, is the country's most populous region and its rice basket. Thailand's alluring and congested capital city of Bangkok is located along the banks of the Chao Phraya, near the river's outlet into the Bight of Bangkok and the Gulf of Thailand. The southern region of Thailand, which stretches for hundreds of miles along the Malay peninsula, abounds with stunning beaches and scores of tropical islands.Thailand can be an extremely hot and soggy place. Its tropical climate is divided into three seasons: cool in November to February, hot in March to May, and rainy in June to October. The seasons are more extreme in the northern regions, where the dry heat can grow quite intense in late spring and the cool can become cold in the mountains. The rainy season is no detriment to travel in Thailand, as the rains can be cool and refreshing. Background:VietnamThe conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by Communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the Communist North and anti-Communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under Communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies, the persecution and mass exodus of individuals - many of them successful South Vietnamese merchants - and growing international isolation. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The Communist leaders, however, maintain control on political expression and have resisted outside calls to improve human rights. The country continues to experience small-scale protests from various groups - the vast majority connected to land-use issues, calls for increased political space, and the lack of equitable mechanisms for resolving disputes. Various ethnic minorities, such as the Montagnards of the Central Highlands and the Khmer Krom in the southern delta region, have also held protests.Thailand:A unified Thai kingdom was established in the mid-14th century. Known as Siam until 1939, Thailand is the only Southeast Asian country never to have been taken over by a European power. A bloodless revolution in 1932 led to a constitutional monarchy. In alliance with Japan during World War II, Thailand became a US treaty ally in 1954 after sending troops to Korea and later fighting alongside the United States in Vietnam. Thailand since 2005 has experienced several rounds of political turmoil including a military coup in 2006 that ousted then Prime Minister THAKSIN Chinnawat, followed by large-scale street protests by competing political factions in 2008, 2009, and 2010. Demonstrations in 2010 culminated with clashes between security forces and pro-THAKSIN protesters, elements of which were armed, and resulted in at least 92 deaths and an estimated $1.5 billion in arson-related property losses. THAKSIN's youngest sister, YINGLAK Chinnawat, in 2011 led the Puea Thai Party to an electoral win and assumed control of the government. YINGLAK's leadership was almost immediately challenged by historic flooding in late 2011 that had large swathes of the country underwater and threatened to inundate Bangkok itself. Throughout 2012 the Puea Thai-led government struggled with the opposition Democrat Party to fulfill some its main election promises, including constitutional reform and political reconciliation. Since January 2004, thousands have been killed and wounded in violence associated with the ethno-nationalist insurgency in Thailand's southern Malay-Muslim majority provinces.

II) PESTLE Analysis: History:Vietnam:HistoryLegend has it that Vietnam's origin lay in the harmonious union of lac Long Quan, King of the Sea, and Au Co, Princess of the Mountains. Real life was not so paradisical, as Vietnam's early history--like its recent history--is characterized by a nearly continuous struggle for autonomy. First came an entire millenium of Chinese domination, which was finally thrown off in the 9th century. External control was imposed once again in the 19th century, when Vietnam was occupied by the French.French rule lasted until WWII, when the country was invaded by Japan. At the war's end the predominantly Communist Viet Minh, which had led the resistance movement against the Japanese, declared the country's independence. The French Indochina War ensued, until France admitted defeat in 1954, and the Geneva Accords left Vietnam divided into a Communist north and an anti-Communist south. By this time the U.S. had replaced the French as the primary sponsor of the anti-Communist government. Tension between north and south mounted over the next few years, until in 1964 full scale war erupted. The conflict lasted for the next eight years, and involved hundreds of thousands of troops from the U.S. and other countries. In 1973 a cease-fire agreement allowed the U.S. the opportunity to withdraw its troops, and in 1975 the southern capital of Saigon fell to the North Vietnamese. An extended period of political repression followed, prompting massive emigration from the country. In 1991, with the fall of Communism and the end of the Cold War, many western powers re-established diplomatic and trade relations with Vietnam. The last country to do so, in 1995, was the U.S.Vietnamese CultureThe richness of Vietnam's origins is evident throughout its culture. Spiritual life in Vietnam is a grand panoply of belief systems, including Confucianism, Taoism, Buddhism, Christianity, and Tam Giao (literally 'triple religion'), which is a blend of Taoism, popular Chinese beliefs, and ancient Vietnamese animism.The most important festival of the year is Tet, a week-long event in late January or early February that heralds the new lunar year and the advent of spring. Celebration consists of both raucous festivity (fireworks, drums, gongs) and quiet meditation. In addition to Tet, there are about twenty other traditional and religious festivals each year.Vietnamese architecture expresses a graceful aesthetic of natural balance and harmony that is evident in any of the country's vast numbers of historic temples and monasteries. The pre-eminent architectural form is the pagoda, a tower comprised of a series of stepped pyramidal structures and frequently adorned with lavish carvings and painted ornamentation. Generally speaking, the pagoda form symbolizes the human desire to bridge the gap between the constraints of earthly existence and the perfection of heavenly forces. Pagodas are found in every province of Vietnam. One of the most treasured is the Thien Mu Pagoda in Hue, founded in 1601 and completed more than two hundred years later. In North Vietnam, the pagodas that serve as the shrines and temples of the Son La mountains are especially worth visiting. In South Vietnam, the Giac Lam Pagoda of Ho Chi Minh City is considered to be the city's oldest and is notable as well for its many richly-carved jackwood statues.As a language, Vietnamese is exceptionally flexible and lyrical, and poetry plays a strong role in both literature and the performing arts. Folk art, which flourished before French colonization, has experienced a resurgence in beautiful woodcuts, village painting, and block printing. Vietnamese lacquer art, another traditional medium, is commonly held to be the most original and sophisticated in the world. Music, dance, and puppetry, including the uniquely Vietnamese water puppetry, are also mainstays of the country's culture.Although rice is the foundation of the Vietnamese diet, the country's cuisine is anything but bland. Deeply influenced by the national cuisines of France, China, and Thailand, Vietnamese cooking is highly innovative and makes extensive use of fresh herbs, including lemon grass, basil, coriander, parsley, laksa leaf, lime, and chili. Soup is served at almost every meal, and snacks include spring rolls and rice pancakes. The national condiment is nuoc mam, a piquant fermented fish sauce served with every meal. Indigenous tropical fruits include bananas, pineapples, coconuts, lychees, melons, mandarin oranges, grapes, and exotic varieties like the three-seeded cherry and the green dragon fruit.PeopleToday there are about 75 million people in Vietnam. Eighty percent of these are ethnic Vietnamese, while the remaining twenty percent comprises more than fifty separate ethnic groups. About seven million of these ethnic minorities are members of the hill tribes ormontagnards(French for mountain people), making their homes and livelihoods in the spectacular mountains of the north and central highlands. Among the many languages spoken in Vietnam are Vietnamese, Chinese, English, French, and Russian.Thailand:History and PeopleThe earliest people to appear in Thailand were most likely the Mons, who came into Southeast Asia from Central China two millennia ago. The Mons settled along various rivers in Burma and Thailand, building cities and rapidly developing a civilized culture. Within a few centuries they were confronted by other groups coming out of the north. As the region filled with people and villages, local kingdoms emerged and vied for supremacy over each other, giving rise to Thailand's earliest empires. The first of these were the Davaravati of Central Thailand and the Srivijaya, whose empire extended from Sumatra up the Malay peninsula to southern Thailand. Both kingdoms practiced Buddhism, which had spread from India during the time of the Mons. Eventually, the Davaravati fell to the westward expansion of the Khmers from Cambodia.The next Thai kingdom to arise was Siam, which had its origins in the military expansion of the Mongols under Kublai Khan. As the Mongols pressed south through China, the peoples of the northwestern mountains and the Shan Plateau fled south and east. In 1220, the Thai lords founded their first capital at [link]Sukhothai[link], in the Nan River valley. Soon afterward, two other Thai kingdoms were established: Lanna Thai (million Thai rice fields) at Chiang Mai in the north, and Ayuthaya, upriver from present day Bangkok. In the mid-14th century, Ayuthaya had entered its golden age, dominating the other kingdoms and driving the Khmers out of the region entirely.For the next few centuries the Thai kingdoms faced a stronger threat, not from the east or north, but from their neighbors to the west---the Burmese. In 1556 the Burmese captured Chiang Mai, and then Ayuthaya in 1569. The Thais rallied and recaptured both cities in the following decades, but the antagonism between the two peoples continued. The Burmese attacked Ayuthaya once more in 1767, this time practically erasing the city after a particularly bloody and protracted battle. Although the Thais managed to expel the Burmese shortly after, a new capital had to be constructed around what is now Bangkok. This chapter in Thai history marks the establishment of the Chakri Dynasty under Rama I, whose descendants have reigned in unbroken succession until the present day.Unlike most of the other countries of Southeast Asia, Thailand (or Siam, as it was known at the time) never felt the yoke of direct European colonialism. As early as the 17th century, the Thai kings were set upon maintaining independence, having executed a French emissary to underscore their determination. As the French, British, and Dutch carved up the entire region over the next hundred years, the Kings of Siam shrewdly played the competing Europeans against each other, ensuring that no one power would gain a dominant presence. The strategy paid off handsomely, as Siam remained autonomous while reaping most of whatever benefits the colonial system had to offer.After a peaceful coup in 1932, Siam's powerful monarchy became constitutional, and in 1939 the country officially adopted the name Thailand. Over the next several decades, Thailand was governed primarily by military dictatorships, which drew much of their support from collaboration with more powerful nations. They supported the Japanese occupation army in WW2 and later provided bases and men for the United States' efforts in Vietnam. Since that time, Thailand has weathered several coups, a number of border clashes with neighbouring communist regimes, and violent student demonstrations, finally emerging in the last decade as a remarkably stable and economically successful nation.Today Thailand has a population of 54 million people, the vast majority of whom are of Thai ethnicity. Significant minorities of Chinese, Malay, Khmer, Mons, and various hill tribes also reside in Thailand, in addition to tens of thousands of refugees in border camps from the more troubled countries of South-East Asia.Buddhism is the dominant religion in Thailand, although a variety of tribal religions continue to be practiced. Thailand's people regard their royal family with a respect bordering on awe. The main language in Thailand is Thai, although Lao, Chinese, Malay and English are also spoken by significant numbers of people.1) Politicala) GovernmentVietnamThailand

Country nameconventional long form:Socialist Republic of Vietnamconventional short form:Vietnamlocal long form:Cong Hoa Xa Hoi Chu Nghia Viet Namlocal short form:Viet Namabbreviation:SRVconventional long form:Kingdom of Thailandconventional short form:Thailandlocal long form:Ratcha Anachak Thailocal short form:Prathet Thaiformer:Siam

Government typeCommunist stateconstitutional monarchy

Capitalname:Hanoi (Ha Noi)geographic coordinates:21 02 N, 105 51 Etime difference:UTC+7 (12 hours ahead of Washington, DC during Standard Time)name:Bangkokgeographic coordinates:13 45 N, 100 31 Etime difference:UTC+7 (12 hours ahead of Washington, DC during Standard Time)

Administrative divisions58 provinces (tinh, singular and plural) and 5 municipalities (thanh pho, singular and plural)provinces:An Giang, Bac Giang, Bac Kan, Bac Lieu, Bac Ninh, Ba Ria-Vung Tau, Ben Tre, Binh Dinh, Binh Duong, Binh Phuoc, Binh Thuan, Ca Mau, Cao Bang, Dak Lak, Dak Nong, Dien Bien, Dong Nai, Dong Thap, Gia Lai, Ha Giang, Ha Nam, Ha Tinh, Hai Duong, Hau Giang, Hoa Binh, Hung Yen, Khanh Hoa, Kien Giang, Kon Tum, Lai Chau, Lam Dong, Lang Son, Lao Cai, Long An, Nam Dinh, Nghe An, Ninh Binh, Ninh Thuan, Phu Tho, Phu Yen, Quang Binh, Quang Nam, Quang Ngai, Quang Ninh, Quang Tri, Soc Trang, Son La, Tay Ninh, Thai Binh, Thai Nguyen, Thanh Hoa, Thua Thien-Hue, Tien Giang, Tra Vinh, Tuyen Quang, Vinh Long, Vinh Phuc, Yen Baimunicipalities:Can Tho, Da Nang, Ha Noi, Hai Phong, Ho Chi Minh City77 provinces (changwat, singular and plural); Amnat Charoen, Ang Thong, Bueng Kan, Buriram, Chachoengsao, Chai Nat, Chaiyaphum, Chanthaburi, Chiang Mai, Chiang Rai, Chon Buri, Chumphon, Kalasin, Kamphaeng Phet, Kanchanaburi, Khon Kaen, Krabi, Krung Thep Mahanakhon (Bangkok), Lampang, Lamphun, Loei, Lop Buri, Mae Hong Son, Maha Sarakham, Mukdahan, Nakhon Nayok, Nakhon Pathom, Nakhon Phanom, Nakhon Ratchasima, Nakhon Sawan, Nakhon Si Thammarat, Nan, Narathiwat, Nong Bua Lamphu, Nong Khai, Nonthaburi, Pathum Thani, Pattani, Phangnga, Phatthalung, Phayao, Phetchabun, Phetchaburi, Phichit, Phitsanulok, Phra Nakhon Si Ayutthaya, Phrae, Phuket, Prachin Buri, Prachuap Khiri Khan, Ranong, Ratchaburi, Rayong, Roi Et, Sa Kaeo, Sakon Nakhon, Samut Prakan, Samut Sakhon, Samut Songkhram, Sara Buri, Satun, Sing Buri, Sisaket, Songkhla, Sukhothai, Suphan Buri, Surat Thani, Surin, Tak, Trang, Trat, Ubon Ratchathani, Udon Thani, Uthai Thani, Uttaradit, Yala, Yasothon

Independence2 September 1945 (from France)1238 (traditional founding date; never colonized)

National holidayIndependence Day, 2 September (1945)Birthday of King PHUMIPHON (BHUMIBOL), 5 December (1927)

Constitution15 April 199224 August 2007

Legal systemcivil law system; note - the civil code of 2005 reflects a European-style civil lawcivil law system with common law influences

Suffrage18 years of age; universal18 years of age; universal and compulsory

Executive branchchief of state:President Truong Tan SANG (since 25 July 2011); Vice President Nguyen Thi DOAN (25 July 2007)head of government:Prime Minister Nguyen Tan DUNG (since 27 June 2006); Deputy Prime Minister Hoang Trung HAI (since 2 August 2007), Deputy Prime Minister Nguyen Thien NHAN (since 2 August 2007), Deputy Prime Minister Vu Van NINH (since 3 August 2011), and Deputy Prime Minister Nguyen Xuan PHUC (since 3 August 2011)cabinet:Cabinet appointed by president based on proposal of prime minister and confirmed by National Assemblyelections:president elected by the National Assembly from among its members for five-year term; last election held 25 July 2011 (next to be held in July 2016); prime minister appointed by the president from among the members of the National Assembly; deputy prime ministers appointed by the prime minister; appointment of prime minister and deputy prime ministers confirmed by National Assemblyelection results:Truong Tan SANG elected president; percent of National Assembly vote - 97%; Nguyen Tan DUNG elected prime minister; percent of National Assembly vote - 94%chief of state:King PHUMIPHON Adunyadet, also spelled BHUMIBOL Adulyadej (since 9 June 1946)head of government:Prime Minister YINGLAK Chinnawat, also spelled YINGLUCK Shinawatra (since 8 August 2011); Deputy Prime Minister CHARUPHONG Rueangsusan also spelled JARUPONG Ruangsuwan (since 28 October 2012); Deputy Prime Minister CHALOEM Yubamrung also spelled CHALERM Yubamrung (since 28 October 2012; Deputy Prime Minister KITTIRAT Na Ranong (since 28 October 2012); Deputy Prime Minister PHONGTHEP Therkanchana also spelled PHONGTHEP Thepkanchana (since 28 October 2012); Deputy Prime Minister PLODPRASOP Suraswadi (since 28 October 2012); Deputy Prime Minister SURAPHONG Towijakchaikun also spelled SURAPONG Tovichakchaikul (since 28 October 2012)cabinet:Council of Ministersnote:there is also a Privy Council advising the kingelections:the monarchy is hereditary; according to 2007 constitution, the prime minister is elected from among members of House of Representatives; following national elections for House of Representatives, the leader of the party positioned to organize a majority coalition usually becomes prime minister by appointment by the king; the prime minister is limited to two four-year terms

Legislative branchunicameral National Assembly or Quoc Hoi (500 seats; members elected by popular vote to serve five-year terms)elections:last held on 22 May 2011 (next to be held in May 2016)election results:percent of vote by party - NA; seats by party - CPV 458, non-party CPV-approved 38, self-nominated 4; note - 500 candidates were elected; the 496 CPV and non-party CPV-approved delegates were members of the Vietnamese Fatherland Front and were vetted prior to the electionbicameral National Assembly or Rathasapha consisted of the Senate or Wuthisapha (150 seats; 77 members elected by popular vote representing 77 provinces, 73 appointed by judges and independent government bodies; members serve six-year terms) and the House of Representatives or Sapha Phuthaen Ratsadon (500 seats; 375 members elected from 375 single-seat constituencies and 125 elected on proportional party-list basis; members serve four-year terms)elections:Senate - last held on 2 March 2008 (next to be held in March 2014); House of Representatives - last election held on 3 July 2011 (next to be held by July 2015)election results:Senate - percent of vote by party - NA; seats by party - NA; House of Representatives - percent of vote by party - NA; seats by party - PTP 265, DP 159, PJT 34, CTP 19, others 15note:74 senators were appointed on 19 February 2008 by a seven-member committee headed by the chief of the Constitutional Court; 76 senators were elected on 2 March 2008; elections to the Senate are non-partisan; registered political party members are disqualified from being senators

Judicial branchSupreme People's Court (chief justice is elected by the National Assembly on the recommendation of the president for a five-year term)Constitutional Court, Supreme Court of Justice, and Supreme Administrative Court; all judges are appointed by the king; the king's appointments to the Constitutional Court are made upon the advice of the Senate; the nine Constitutional Court judges are drawn from the Supreme Court of Justice and Supreme Administrative Court as well as from among substantive experts in law and social sciences outside the judiciary

Political parties and leadersCommunist Party of Vietnam or CPV [Nguyen Phu TRONG]; other parties proscribedChat Pattana Party or CPN (Nation Development Party [WANNARAT Channukun]; Chat Thai Phattana Party or CTP (Thai Nation Development Party) [CHUMPON Silpa-archa]; Phalang Chon Party (People [Chonburi] Power Party) [CHAO Manivong]; Phumjai (Bhumjai) Thai Party or PJT (Thai Pride) [Boonjong WONGTRAIRAT (acting)]; Prachathipat Party or DP (Democrat Party) [ABHISIT Wechachiwa, also spelled ABHISIT Vejjajiva]; Puea Thai Party (For Thais Party) or PTP [CHARUPHONG Rueangsusan also spelled JARUPONG Ruangsuwan]; Rak Prathet Thai Party (Love Thailand Party) [CHUWIT Kamonwisit]

Political pressure groups and leaders8406 Bloc; Democratic Party of Vietnam or DPV; People's Democratic Party Vietnam or PDP-VN; Alliance for Democracynote:these groups advocate democracy but are not recognized by the governmentMulticolor Group; People's Alliance for Democracy or PAD; United Front for Democracy Against Dictatorship or UDD

International organization participationADB, APEC, ARF, ASEAN, CICA, CP, EAS, FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, MIGA, NAM, OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTOADB, APEC, ARF, ASEAN, BIMSTEC, BIS, CD, CICA, CP, EAS, FAO, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NAM, OAS (observer), OIC (observer), OIF (observer), OPCW, OSCE (partner), PCA, PIF (partner), UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNMOGIP, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Diplomatic representation in the USchief of mission:Ambassador Nguyen Quoc CUONGchancery:1233 20th Street NW, Suite 400, Washington, DC 20036telephone:[1] (202) 861-0737FAX:[1] (202) 861-0917consulate(s) general:Houston, San Franciscoconsulate:New Yorkchief of mission:Ambassador CHAIYONG Satchiphanon (also spelled CHAIYONG Satjipanon)chancery:1024 Wisconsin Avenue NW, Suite 401, Washington, DC 20007telephone:[1] (202) 944-3600FAX:[1] (202) 944-3611consulate(s) general:Chicago, Los Angeles, New York

Diplomatic representation from the USchief of mission:Ambassador David B. SHEARembassy:7 Lang Ha Street, Ba Dinh District, Hanoimailing address:4550 Hanoi Place, Washington, DC 20521-4550telephone:[84] (4) 3850-5000FAX:[84] (4) 3850-5010consulate(s) general:Ho Chi Minh Citychief of mission:Ambassador Kristie A. KENNEYembassy:120-122 Wireless Road, Bangkok 10330mailing address:APO AP 96546telephone:[66] (2) 205-4000FAX:[66] (2) 254-2990, 205-4131consulate(s) general:Chiang Mai

Flag descriptionred field with a large yellow five-pointed star in the center; red symbolizes revolution and blood, the five-pointed star represents the five elements of the populace - peasants, workers, intellectuals, traders, and soldiers - that unite to build socialismfive horizontal bands of red (top), white, blue (double width), white, and red; the red color symbolizes the nation and the blood of life; white represents religion and the purity of Buddhism; blue stands for the monarchynote:similar to the flag of Costa Rica but with the blue and red colors reversed

National anthemname:"Tien quan ca" (The Song of the Marching Troops)lyrics/music:Nguyen Van CAOnote:adopted as the national anthem of the Democratic Republic of Vietnam in 1945; it became the national anthem of the unified Socialist Republic of Vietnam in 1976; although it consists of two verses, only the first is used as the official anthemname:"Phleng Chat Thai" (National Anthem of Thailand)lyrics/music:Luang SARANUPRAPAN/Phra JENDURIYANGnote:music adopted 1932, lyrics adopted 1939; by law, people are required to stand for the national anthem at 0800 and 1800 every day; the anthem is played in schools, offices, theaters, and on television and radio during this time; "Phleng Sansasoen Phra Barami" (A Salute to the Monarch) serves as the royal anthem and is played in the presence of the royal family and during certain state ceremonies

International law organization participationhas not submitted an ICJ jurisdiction declaration; non-party state to the ICCthas not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

b) MilitaryVietnamThailand

Military branchesPeople's Armed Forces: People's Army of Vietnam (PAVN; includes People's Navy Command (with Naval Infantry, Coast Guard), Air and Air Defense Force (Khong Quan Nhan Dan), Border Defense Command), People's Public Security Forces, Militia Force, Self-Defense Forces (2010)Royal Thai Army (Kongthap Bok Thai, RTA), Royal Thai Navy (Kongthap Ruea Thai, RTN, includes Royal Thai Marine Corps), Royal Thai Air Force (Kongthap Agard Thai, RTAF) (2010)

Military service age and obligation18 years of age for male compulsory military service; females may volunteer for active duty military service; conscript service obligation - 2 years (3 to 4 years in the navy); 18-45 years of age (male) or 18-40 years of age (female) for Militia Force or Self Defense Forces (2006)21 years of age for compulsory military service; 18 years of age for voluntary military service; males register at 18 years of age; 2-year conscript service obligation (2009)

Manpower available for military servicemales age 16-49:25,649,738females age 16-49:24,995,692 (2010 est.)males age 16-49:17,689,921females age 16-49:17,754,795 (2010 est.)

Manpower fit for military servicemales age 16-49:20,405,847females age 16-49:21,098,102 (2010 est.)males age 16-49:13,308,372females age 16-49:14,182,567 (2010 est.)

Manpower reaching militarily significant age annuallymale:847,743female:787,341 (2010 est.)male:533,424female:509,780 (2010 est.)

Military expenditures - percent of GDP2.5% of GDP (2005 est.)1.8% of GDP (2005 est.)

c) Transnational IssuesVietnam ThailandDisputes - internationalsoutheast Asian states have enhanced border surveillance to check the spread of avian flu; Cambodia and Laos protest Vietnamese squatters and armed encroachments along border; Cambodia accuses Vietnam of a wide variety of illicit cross-border activities; progress on a joint development area with Cambodia is hampered by an unresolved dispute over sovereignty of offshore islands; an estimated 300,000 Vietnamese refugees reside in China; establishment of a maritime boundary with Cambodia is hampered by unresolved dispute over the sovereignty of offshore islands; the decade-long demarcation of the China-Vietnam land boundary was completed in 2009; China occupies the Paracel Islands also claimed by Vietnam and Taiwan; Brunei claims a maritime boundary extending beyond as far as a median with Vietnam, thus asserting an implicit claim to Lousia Reef; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Vietnam continues to expand construction of facilities in the Spratly Islands; in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord to conduct marine seismic activities in the Spratly Islands; Economic Exclusion Zone negotiations with Indonesia are ongoing, and the two countries in Fall 2011 agreed to work together to reduce illegal fishing along their maritime boundaryseparatist violence in Thailand's predominantly Malay-Muslim southern provinces prompt border closures and controls with Malaysia to stem insurgent activities; Southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Laos but disputes remain over several islands in the Mekong River; despite continuing border committee talks, Thailand must deal with Karen and other ethnic rebels, refugees, and illegal cross-border activities; Cambodia and Thailand dispute sections of boundary; in 2011 Thailand and Cambodia resorted to arms in the dispute over the location of the boundary on the precipice surmounted by Preah Vihear temple ruins, awarded to Cambodia by ICJ decision in 1962 and part of a planned UN World Heritage site; Thailand is studying the feasibility of jointly constructing the Hatgyi Dam on the Salween river near the border with Burma; in 2004, international environmentalist pressure prompted China to halt construction of 13 dams on the Salween River that flows through China, Burma, and Thailand; 140,000 mostly Karen refugees fleeing civil strife, political upheaval and economic stagnation in Burma live in remote camps in Thailand near the border

Illicit drugsminor producer of opium poppy; probable minor transit point for Southeast Asian heroin; government continues to face domestic opium/heroin/methamphetamine addiction problems despite longstanding crackdownsa minor producer of opium, heroin, and marijuana; transit point for illicit heroin en route to the international drug market from Burma and Laos; eradication efforts have reduced the area of cannabis cultivation and shifted some production to neighboring countries; opium poppy cultivation has been reduced by eradication efforts; also a drug money-laundering center; minor role in methamphetamine production for regional consumption; major consumer of methamphetamine since the 1990s despite a series of government crackdowns

Vietnam is a one-party communist state, and is led by a troika made up of General Secretary Nguyen Phu Trong, President Truong Tan Sang, and Prime Minister Nguyen Tan Dung.The Vietnamese government is growing concerned with the activities of Bloc 8406, a pro-democracy dissident group. The group was named for the day on which it was founded: April 8, 2006. The group counts young, educated professionals among its members.The ruling CPV has not recently faced any serious threats to its power, and this situation is expected to remain the same over the coming few years. The previous elections to the National Assembly were held in May 2007, and a cabinet was instated in July 2007. Nong Duc Manh was re-elected as general secretary. During his first term, which ran from 2001 to 2006, he focused on fostering unity and stability within the party, and he continued with the same policies in his second term. Mr Manh was a supporter of reform, and sought to counter any attempt to roll back progressive motions by conservatives within the party. The CPV is committed to combating the increasing levels of corruption, an attitude that is expected to show positive results in the near term.

The CPV of Vietnam held its congress in January 2011, Nguyen Phu Trong replaced Nong Duc Manh as the new general secretary of the CPV. The latter retired after 10 years in the post. The new general secretary of the CPV has said that tackling the economic problems in the country is a priority. Nguyen Tan Dung, the current prime minister, is a reformist, and has been reappointed for another five year term. However, the CPV is expected to keep its stranglehold on the country's political landscape for the foreseeable future.And Thailand:Thailand has adopted a parliamentary, democratic form of government, with the King as Head of State under the Constitution, exercising the sovereign power in the administration, as Thailand is a sovereign state free to conduct her internal and external affairs without pressure, control, or intervention from other countries. The sovereign power comprises three branches:

Legislative power, or the legislature, the institution empowered to pass laws, namely the National Assembly, in the form of a bicameral assembly, made up of a House of Representatives and a Senate. All members of the former are publicly elected, while in the latter, out of 150 senators, one senator is elected from each province, making 76, and the rest are appointed;

Administrative power, or the administration, the institution that administers public policy and enforces the laws, which is the administration or the government, comprising political officials who are publicly elected to serve as the prime minister and cabinet members to administer the country, and permanent officials, the civil service personnel in the public sector, who implement policies and enforce the laws;

Judicial power, or the judiciary, exercised by the courts and judges in the name of the state, or the monarch. The power in the trial and adjudication of cases is in line with the provisions in the laws. The courts are divided into the Constitutional Court, Administrative Courts, and Courts of Justice.

2) Economy Vietnam ThailandEconomy - overviewVietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession hurt Vietnam's export-oriented economy, with GDP in 2009-12 growing less than the 7% per annum average achieved during the previous decade. In 2012, however, exports increased by more than 12%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. In early 2012 Vietnam unveiled a broad, "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises, and the banking sector. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some financial analysts believe it could be as high as 15%.With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities and processed foods. Bangkok is trying to maintain growth by encouraging domestic consumption and public investment. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. Bangkok is implementing a nation-wide 300 baht per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas north of Bangkok, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward and GDP expanded 5.8% in 2012. The government has invested in flood mitigation projects to prevent similar economic damage.

GDP (purchasing power parity)$320.5 billion (2012 est.)$304.9 billion (2011 est.)$287.9 billion (2010 est.)note:data are in 2012 US dollars$646.1 billion (2012 est.)$612 billion (2011 est.)$611.7 billion (2010 est.)note:data are in 2012 US dollars

GDP - real growth rate5.1% (2012 est.)5.9% (2011 est.)6.8% (2010 est.)5.6% (2012 est.)0.1% (2011 est.)7.8% (2010 est.)

GDP - per capita (PPP)$3,500 (2012 est.)$3,400 (2011 est.)$3,300 (2010 est.)note:data are in 2012 US dollars$10,000 (2012 est.)$9,600 (2011 est.)$9,600 (2010 est.)note:data are in 2012 US dollars

GDP - composition by sectoragriculture:21.5%industry:40.7%services:37.7% (2012 est.)agriculture:13%industry:43%services:44.1% (2012 est.)

Population below poverty line14.5% (2010 est.)8.1% (2009 est.)

Household income or consumption by percentage sharelowest 10%:3.2%highest 10%:30.2% (2008)lowest 10%:2.8%highest 10%:31.5% (2009 est.)

Inflation rate (consumer prices)9.2% (2012 est.)18.7% (2011 est.)3.1% (2012 est.)3.8% (2011 est.)

Labor force49.18 million (2012 est.)39.77 million (2012 est.)

Labor force - by occupationagriculture:48%industry:22.4%services:29.6% (2011)agriculture:40.7%industry:13.2%services:46.1% (2011 est.)

Unemployment rate4.3% (2012 est.)3.6% (2011 est.)0.9% (2012 est.)0.7% (2011 est.)

Distribution of family income - Gini index37.6 (2008)36.1 (1998)53.6 (2009)42 (2002)

Budgetrevenues:$42.14 billionexpenditures:$47.57 billion (2012 est.)revenues:$68.26 billionexpenditures:$77.13 billion (2012 est.)

Industriesfood processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phonestourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts; world's second-largest tungsten producer and third-largest tin producer

Industrial production growth rate6% (2011 est.)-9.3% (2011 est.)

Agriculture - productspaddy rice, coffee, rubber, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafoodrice, cassava (manioc), rubber, corn, sugarcane, coconuts, soybeans

Exports$109.4 billion (2012 est.)$96.91 billion (2011 est.)$218.1 billion (2012 est.)$219.1 billion (2011 est.)

Exports - commoditiesclothes, shoes, marine products, crude oil, electronics, wooden products, rice, machinerytextiles and footwear, fishery products, rice, rubber, jewelry, automobiles, computers and electrical appliances

Exports - partnersUS 18%, China 11%, Japan 11%, Germany 3.7% (2011 est.)China 12%, Japan 10.5%, US 9.6%, Hong Kong 7.2%, Malaysia 5.4%, Singapore 5%, Indonesia 4.4% (2011)

Imports$109.6 billion (2012 est.)$97.36 billion (2011 est.)$213.7 billion (2012 est.)$202.1 billion (2011 est.)

Imports - commoditiesmachinery and equipment, petroleum products, steel products, raw materials for the clothing and shoe industries, electronics, plastics, automobilescapital goods, intermediate goods and raw materials, consumer goods, fuels

Imports - partnersChina 22%, South Korea 13.2%, Japan 10.4%, Taiwan 8.6%, Thailand 6.4%, Singapore 6.4% (2011 est.)Japan 18.4%, China 13.4%, UAE 6.3%, US 5.9%, Malaysia 5.4%, South Korea 4% (2011)

Debt - external$41.85 billion (31 December 2012 est.)$39.63 billion (31 December 2011 est.)$115.6 billion (30 September 2011 est.)$100.6 billion (31 December 2010 est.)

Exchange ratesdong (VND) per US dollar -20,858.3 (2012 est.)20,649 (2011 est.)18,612.92 (2010 est.)17,799.6 (2009)16,548.3 (2008)baht per US dollar -31.41 (2012 est.)30.492 (2011 est.)31.686 (2010 est.)34.286 (2009)33.37 (2008)

Fiscal yearcalendar year1 October - 30 September

Investment (gross fixed)28.2% of GDP (2012 est.)28.8% of GDP (2012 est.)

Public debt48.2% of GDP (2012 est.)48.3% of GDP (2011 est.)note:data cover general government debt, and excludes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions47.8% of GDP (2012 est.)44.9% of GDP (2011 est.)note:data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are sold at public auctions

Reserves of foreign exchange and gold$20.9 billion (31 December 2012 est.)$14.05 billion (31 December 2011 est.)$172.8 billion (31 December 2012 est.)$175.1 billion (31 December 2011 est.)

Current Account Balance-$320.5 million (2012 est.)$236 million (2011 est.)-$2.442 billion (2012 est.)$5.322 billion (2011 est.)

GDP (official exchange rate)$137.7 billion (2012 est.)$377 billion (2012 est.)

Stock of direct foreign investment - at home$75.45 billion (31 December 2012 est.)$65.35 billion (31 December 2011 est.)$158.7 billion (31 December 2012 est.)$146.7 billion (31 December 2011 est.)

Stock of direct foreign investment - abroad$7.7 billion (31 December 2009 est.)$5.3 billion (31 December 2008)$45.79 billion (31 December 2012 est.)$34.79 billion (31 December 2011 est.)

Market value of publicly traded shares$33 billion (2 October 2012 est.)$26 billion (31 December 2011)$37 billion (31 December 2010 est.)$268.5 billion (31 December 2011)$277.7 billion (31 December 2010)$138.2 billion (31 December 2009)

Central bank discount rate13% (31 December 2011)7% (31 December 2010)3.25% (31 December 2011 est.)2% (31 December 2010 est.)

Commercial bank prime lending rate13.6% (31 December 2012 est.)16.96% (31 December 2011 est.)7.1% (31 December 2012 est.)6.91% (31 December 2011 est.)

Stock of money$25.52 billion (31 December 2008)$27.01 billion (31 December 2007)$35.35 billion (31 December 2009)$28.76 billion (31 December 2008)

Stock of quasi money$63.63 billion (31 December 2008)$50.81 billion (31 December 2007)$283.6 billion (31 December 2009)$237.5 billion (31 December 2008)

Stock of domestic credit$156.9 billion (31 December 2012 est.)$145.7 billion (31 December 2011 est.)$420.4 billion (31 December 2012 est.)$402.5 billion (31 December 2011 est.)

Stock of narrow money$37.05 billion (31 December 2012 est.)$32.64 billion (31 December 2011 est.)$49.33 billion (31 December 2012 est.)$44.63 billion (31 December 2011 est.)

Stock of broad money$142.9 billion (31 December 2012 est.)$132 billion (31 December 2011 est.)$462.4 billion (31 December 2012 est.)$428.1 billion (31 December 2011 est.)

Taxes and other revenues30.6% of GDP (2012 est.)18.1% of GDP (2012 est.)

Budget surplus (+) or deficit (-)-3.9% of GDP (2012 est.)-2.4% of GDP (2012 est.)

Unemployment, youth ages 15-24total:4.6%male:4.4%female:4.9% (2004)total:4.3%male:3.7%female:5.1% (2009)

3) Social-culturala) Vietnam Overview

The poverty rate in Vietnam has experienced a sharp fall over the past few years, although it remained at over 20% in 2007. The country managed to keep unemployment below 3% during 200207; however, the unemployment rate climbed to above 4% in 2008. The median age in the country is below 30 years, which indicates that it has a young population. Consequently, unlike many advanced countries Vietnam will not be faced with the problems of an aging population and rising social expenditure in the near future. Despite an improvement in Vietnam's relations with the US, the persecution of individuals with religious beliefs has led the US Department of State to put the country on its list of Countries of Particular Concern, for violations of religious freedom. In addition, the Japanese government has put its ODA on hold after revelations of corruption surfaced. This could delay improvements to the Vietnamese transport and sewerage systems.

Table 5:Analysis of Vietnams social system

Current strengthsCurrent challenges

A young society Lack of religious freedom

Low wages in the private sector Shortage of doctors in the Central Highlands

Future prospectsFuture risks

Initiative to improve educational quality and raise awareness of Rapid growth in slums

sustainable development High unemployment coupled with high inflation

Japanese ODA

Source: DatamonitorD A T A M O N I T O R

Current strengths

A young society

In Vietnam, 25.3% of the population is in the 014 age group, 69.3% of the population belongs to the 1564 age group, and just 5.5% of the population is in the 65+ age group. According to Central Intelligence Agency World Factbook estimates, Vietnam had a median age of 27.8 years in 2011, which means that half of the population is below this age. While many developed nations are faced with the problem of an aging population and rising social expenditure, Vietnams demographic structure works in its favor, as there are regular additions to its labor force.

Low wages in the private sector

Vietnamese workers have not benefited by taking up work in industrializing urban areas. This is because the wages offered by private companies in Vietnam are far lower than in the public sector. A wave of labor strikes before 2005 led to the government attempting to formalize labor codes and make them more efficient in terms of arbitration and implementation. The government was also forced to raise the minimum wage by nearly 40% due to a surge in industrial action during 2005.However, wages in private factories continue to be below those in state-owned companies. For instance, in a Taiwan-owned factory that witnessed 20,000 workers strike in April 2008, the employees who produce Nike-branded apparel are paid an average monthly wage of $89. In comparison, the minimum wage at state-owned enterprises is 35% higher, and 134% higher for newly skilled employees. Workers at another Taiwan-owned footwear factory near Ho Chi Minh City went on strike in April 2010 to demand better pay and benefits. Furthermore, workers at state-owned enterprises get a share in the company's profits through a bonus system and welfare funds.

The workers at state-owned cement plants earn an average of $200250 per month, and government paper mills workers earn $120180, both figures considerably higher than the amount paid at the strike-hit Taiwan-owned factory. Low wages are coupled with the fact that many workers at foreign factories are required to work up to 1,000 hours overtime a year, often in poor if not abysmal working conditions. Although many Vietnamese individuals have been lifted from poverty after gaining employment in factories owned by external investors, they continue to earn less than those working for state-owned enterprises, which is increasing resentment toward foreign companies.

Current challenges

Lack of religious freedom

The government continues to deny Vietnamese citizens the right to freely practice their religion. Catholics from Hanoi's Thai Ha parish in Vietnam protested in order to demand the return of property expropriated by communists in the 1960s. During this demonstration, the Vietnamese police are alleged to have assaulted activists who were participating in peaceful prayer vigils. Such events have been a feature of the Vietnamese landscape for many years, with demands for the return of confiscated property often quickly followed by state repression.

Catholics are the not the only group facing oppression in the country. According to the US Commission on International Religious Freedom report released in August 2008, the government has been accused of a range of abuses, including the banning of indigenous religions such as Hoa Hao and Cao Dai and the continual harassment of followers of the Unified Buddhist Church of Vietnam. Moreover, local governments in many regions of the country continue to bar students from religious families from attending school, and there are still cases where believers are forced to renounce their faith. The lack of freedom to practice ones religion and the persecution of citizens with religious beliefs continues to be a major problem in the country.

Shortage of doctors in the Central Highlands

The rural areas in Vietnam are not able to attract doctors in sufficient numbers, which is leading to a crippling shortage of medical staff in village healthcare centers. The health officials from the Central Highland provinces of Dak Nong, Dak Lak, Lam Dong, Gia Lai, and Kon Tum have maintained that it is very difficult to attract doctors to rural hospitals. For example, in the Dak Nong province the doctor/patient ratio stood at 4.7 doctors for 10,000 individuals in 2007, which is very low. Furthermore, only 30% of villages in this province have doctors; health officials have pointed out that there is a shortage of doctors at all levels. Although the government sanctioned the spending of $63.5m on 19 health projects in the Central Highlands provinces in 2007, the situation remains grim, as doctors prefer to work in the cities. Future prospects

Initiative to improve educational quality and raise awareness of sustainable development

The United Nations Educational, Scientific, and Cultural Organization's (UNESCO's) Asia Pacific education office praised

Vietnams efforts in implementing the United Nations Decade of Education for Sustainable Development 200514 framework in July 2007. UNESCO stated that Vietnam was one of the first countries to establish a national action committee on the issue of sustainable development. A National Action Program has been initiated to improve the quality of education in the country, and also seeks to raise student awareness of sustainable development issues. Vietnams efforts to improve educational quality and to raise awareness of sustainable development are important first steps towards the countrys long-term progress.

Japanese ODA

In January 2011 the Japan International Cooperation Agency (JICA) signed an agreement with the Vietnamese government to provide a loan of JPY58.18bn ($740m) for three projects. In FY2010, JICA signed loan agreements for a total of JPY18.38bn ($229m) for two projects in May 2010, and a loan agreement in June 2010 for up to a total of JPY10bn ($127m) for one project, bringing the total for the year up to JPY86.5bn ($1.1bn) for six projects. Since resuming aid to Vietnam in 1981, Japan has taken the lead in providing ODA to fund Vietnams crucial infrastructure projects. Rising ODA from Japan is crucial to improve the social landscape in the country.

Future risks

Rapid growth in slums

Vietnams rapid growth has resulted in increasing urbanization. However, there have been no significant investments in the country's infrastructure. A large proportion of the urban population lives in slums, with inadequate water and poor sanitary conditions. Furthermore, most of these slums do not have paved roads, which makes transportation extremely arduous during the rainy seasons. Around 300,000 people lived in slums and squatter settlements in 2009 in Ho Chi Minh City, where neither the government nor private developers are able to provide the housing needed for the estimated 50,000 new migrants that move there every year. Consequently, most of these new migrants end up in the city's rapidly growing slum settlements. The rapid growth of slums is a serious cause for concern.

High unemployment coupled with high inflation

Vietnam has consistently maintained low unemployment levels in the country. The global economic crisis affected the countrys GDP, and increased unemployment from 4.7% in 2007 to 6.1% in 2009, before the rate declined slightly to 5.1% in 2010. The country faced higher inflation of 9.4% in 2010, and this rate is likely to increase to 13.8% in 2011, according to Datamonitor forecasts. High inflation along with high unemployment is likely to cause problems in the medium term.b) Thailand Population

The Thai population is diverse in ethnicity and race, comprising citizens of Thai, Chinese, Mon, Khmer, Lao, and Indian descent. Moreover, residents in each region of the country tend to have specific characteristics and appearance, due to differences in the environment and geographical features. Religion

Buddhism 93.6%Islam 5.4%Christianity 0.9%Others 0.1%

Ethnic groups:

Thai 75%, Chinese 14%, other 11%

Languages

Thai, English (secondary language of the elite), ethnic and regional dialects

Birth rate

12.81 births/1,000 population (2012 est.)

country comparison to the world:153

Sex ratio:c) Total population: 0.98 male(s)/female (2012 est.)

Health expenditures:d) 4.3% of GDP (2009)e) Country comparison to the world : 153 Education expenditures:

4.1% of GDP (2009)

country comparison to the world: 102

Literacy:

Definition: age 15 and over can read and writeTotal population: 92.6%Male: 94.9%Female: 90.5% (2000 census)

Unemployment: Total: 4.3%

country comparison to the world: 125

Male: 3.7%Female: 5.1% (2009)

Languages

The Thai language is comprised of 44 consonants, 32 vowels and five tones in Thai pronunciation, along with a script that has Indian origins. The Thai language, belonging to the Tai family, is the main language in Thailand although there are several regional dialects as well. Other languages spoken in Thailand are Chinese, Lao, Malay and Mon-Khmer, while English use is becoming more prevalent in government and commerce. English is also being taught as a second language in secondary school and universities, which enables the English speaking visitor in Thailand to have little trouble conversing.

The Wai

The wai is the common form of greeting and adheres to strict rules of protocol. Raising both hands, palms joined with the fingers pointing upwards as if in prayer, lightly touching the body somewhere between the chest and the forehead, is the standard form. The wai is both a sign of respect as well as a greeting. Respect and courtesy are demonstrated by the height at which the hands are held and how low the head comes down to meet the thumbs of both hands. The wai may be made

while sitting, walking, or standing. The person who is junior in age or status is the first one to offer the wai. The senior person returns the wai, generally with their hands raised to somewhere around their chest. If a junior person is standing and wants to wai a senior person who is seated, the junior person will stoop or bow their head while making the wai. If there is a great social distance between two people, the wai will not be returned. Buddhism in Thailand

Thailand is a stronghold of Buddhism. Buddhists believe that selfishness and craving result in suffering and that compassion and love bring happiness and well-being. The true path to peace is to eliminate all desire, a condition which Buddhists define as 'nirvana', an indescribable state free of desire, suffering, or further rebirth, in which a person simply is, and is completely at one with his surroundings. Buddhism is practised in Thailand by over 90% of the population.

Hierarchical Society

Thais respect hierarchical relationships. Social relationships are defined as one person being superior to the other. Parents are superior to their children, teachers to their students, and bosses to their subordinates. When Thais meet a stranger, they will immediately try to place you within a hierarchy so they know how you should be treated. This is often done by asking what might be seen as very personal questions in other cultures. Status can be determined by clothing and general appearance, age, job, education, family name, and social connections.

Thai Family Values

The family is the cornerstone of Thai society. Family life is often more closely knit than in western cultures. The Thai family is a form of hierarchy with the parents at the top. Children are taught to honour their parents.

Business Etiquette and Protocol

Relationships & Communication

Thais prefer doing business with people they respect. Relationships develop slowly and do not flourish after one meeting; it may take several meetings. Always be respectful and courteous when dealing with others as this leads to the harmonious relationships necessary within business.

Business Meeting Etiquette

Appointments are necessary and should be made one month in advance. It is good idea to send a list of who will be attending the meeting and their credentials so that Thais know the relative status of the people attending the meeting and can plan properly.

Dress Etiquette

Business attire is conservative.Men should wear dark coloured conservative business suits.

Women should wear conservative business suits or dresses. Women need not wear hosiery. Since Thai's judge you on your clothing and accessories, ensure that your shoes are always highly polished. Thai Food

Tom Yam Gai (Spicy Chicken Soup)

Tom Kha Kai

Kang Keaw Wan Gai (Green Chicken

Curry)

Pad Thai (Fried Noodle)

Tom Yam Goong (Spicy Shrimp Soup)

Even though it is commonly known that Thai food utilizes many health herbs and spices, there have always been debates whether Thai food is really good for health since they tend to be somewhat spicey and oily. Sure some can be highly caloric but many dishes are recogized as being very nutritious and healthy. Garlic, for example, is widely used in Thai food and very good healthwise because it can prevent heart disease, high cholesterol, high blood pressure and cancer. Festivals in THAILAND

National holiday

Birthday of King PHUMIPHON (BHUMIBOL), 5 December (1927)

New Years Day Jan 1st Phra BuddhaBahtFair o 31st January to 1st February Pattaya Festival

Held during the second week of April in Pattaya on Thailand's Eastern Seaboard. It features processions, floral displays, and other special events plus a spectacular

fireworks display.

4) Technologicala) Energy Vietnam Thailand Electricity - production106 billion kWh (2011 est.)139 billion kWh (2008 est.)

Electricity - production by sourcefossil fuel:43.7%hydro:56.3%nuclear:0%other:0% (2001)fossil fuel:91.3%hydro:6.4%nuclear:0%other:2.4% (2001)

Electricity - consumption101 billion kWh (2011 est.)131.6 billion kWh (2008 est.)

Electricity - exports535 million kWh (2009 est.)1.979 billion kWh (2009 est.)

Electricity - imports3.85 billion kWh (2009 est.)2.313 billion kWh (2009 est.)

Oil - production305,000 bbl/day (2011 est.)406,800 bbl/day (2010 est.)

Oil - consumption321,500 bbl/day (2011 est.)988,000 bbl/day (2010 est.)

Oil - imports227,000 bbl/day (2011 est.)807,100 bbl/day (2009 est.)

Oil - exports210,500 bbl/day (2011 est.)269,100 bbl/day (2009 est.)

Oil - proved reserves600 million bbl (1 January 2011 est.)435 million bbl (1 January 2011 est.)

Natural gas - proved reserves192.5 billion cu m (1 January 2011 est.)312.2 billion cu m (1 January 2011 est.)

Natural gas - production8.5 billion cu m (2011 est.)30.88 billion cu m (2009 est.)

Natural gas - consumption9.5 billion cu m (2011 est.)39.17 billion cu m (2009 est.)

Natural gas - exports0 cu m (2011 est.)0 cu m (2009 est.)

Natural gas - imports1 billion cu m (2011 est.)8.29 billion cu m (2009 est.)

Electricity - installed generating capacity15.19 million kW (2009 est.)47.38 million kW (2009 est.)

Refined petroleum products - production0 bbl/day (2008 est.)837,400 bbl/day (2008 est.)

Refined petroleum products - consumption365,000 bbl/day (2011 est.)985,100 bbl/day (2011 est.)

Refined petroleum products - exports21,050 bbl/day (2011 est.)191,600 bbl/day (2008 est.)

Refined petroleum products - imports227,000 bbl/day (2008 est.)7,564 bbl/day (2008 est.)

Carbon dioxide emissions from consumption of energy112.8 million Mt (2010 est.)278.5 million Mt (2010 est.)

The Vietnamese government issued Decree No 80/2010/ND-CP on July 14, 2010, which regulates investment and co-operation with foreign partners in the area of science and technology. The decree covers co-operation in science and technology organizations, research, and training. It requires agreements in this space to be either written or else a memorandum of understanding, the execution of which must be reported to the relevant state authority within 15 days from the date of execution. The agreements must be approved in writing by the provincial People's Committee in which the headquarters of the organization are located, and must also meet environmental requirements. This decree is expected to facilitate investment in science and technology in the country. Manufacturers are choosing North Vietnam to manufacture products meant for the world market and, in particular, for Southeast China. This is because production costs are predicted to increase far more rapidly in the latter country than in the former over the next 1020 years. The first signs of this shift were seen in November 2006, when Intel Corporation declared that it would increase its investment from the previous figure of $300m to $1bn in an assembly-and-test facility outside Ho Chi Minh City. The new facility is expected to be the largest single factory in the Intel network. Production began in 2009, and the facility could employ as many as 4,000 highly skilled workers.And Thailand: Thailand has constantly been making scientific and technological advances. The main goals of development are to create valuable knowledge bases that can be adapted and that can extend Thai local wisdom into commercial benefits, and to raise the level of research and development activities as mechanisms to drive forward economic and social development. NSTDA recognizes that Thailand is rich in natural resources, particularly since agriculture is the main occupation of the Thai people, while industry is a significant contributor to the countrys income. NSTDA therefore has set itself the goal of making operations in agriculture and industry more effective and efficient by the use of modern technologies. This goal will be accomplished through the joint operations of various centers. The Chaipattana Aerator was patented in the name of His Majesty the King, with a patent granted by the Department of Intellectual Property in the year 1995, the first patent in the name of the King in Thailand and in the world. The aerator treats wastewater by rotating paddles through the water in order to oxygenate the water; it is also widely used for adding oxygen to aquaculture breeding pools. STI has launched the Technology, Engineering, and Innovation Promotion Project as a means to raise the competency of the nations production and service sectors, with the objective of expanding production capacity through linkages between research and the commercial application of research, as well as the application of industrial technologies.5) Legislation:a) Vietnam

Overview

The legal landscape in the country has been improving since its bid to become a member of the WTO. According to the World Bank's Doing Business indicators, it is easy to register property in the country compared to elsewhere in the region. Vietnam is a centrally planned socialist economy with state-owned enterprises in monopoly positions, and needs to do more in terms of easing restrictions to promote competition. The countrys judiciary is under the control of the CPV, and the party exercises sufficient power to influence the outcome of cases involving perceived threats to the state or to the partys dominant position. The government has created the National Steering Committee for Corruption Prevention and Control, headed by the prime minister, in an attempt to tackle corruption in the country.

Table 7:Analysis of Vietnams legal landscape

Current strengthsCurrent challenges

Favorable foreign investment scenario Monopolies of state-owned companies

Lack of independent judiciary

Future prospectsFuture risks

Lifting of capital account restrictions Rising power of trade unions

High level of corruption

Source: DatamonitorD A T A M O N I T O R

Current strengths

Favorable foreign investment scenario

Vietnam maintains a policy of encouraging foreign investment. A crucial element in its long-term development strategy has been its continued ability to attract and utilize relatively large amounts of overseas capital, in the form of both FDI and ODA. For 200610, the government of Vietnam established targets in its Socio-Economic Development Plan for FDI at $17.5 19.5bn in disbursements from existing and newly licensed foreign investments, and for approximately $10bn in ODA disbursed by foreign donors, amounting to a total of $2832bn from foreign sources. These levels of FDI and ODA are required to support the governments GDP growth target of 7.58% per year.

Current challenges

Monopolies of state-owned companies

Vietnam is still emerging from being a centrally planned socialist economy with state-owned enterprises holding monopoly positions. In the electricity, aviation, and telecommunications industries government-run companies have a complete monopoly, with market shares of at least 80%. The cement, sugar, banking, and petroleum sectors are all heavily regulated, and as a result state-owned entities have market shares of 1040%. In all of the sectors where government-run organizations enjoy a monopoly, prices tend to be exorbitant and the companies tend to be inefficient and uncompetitive. The government must initiate measures to reduce regulations in some of these sectors, and actively support privatization in order to foster competition and efficiency. Lack of independent judiciary

Vietnam lacks an independent judiciary, in part because the CPV selects judges and vets them for political reliability. Furthermore, the party seeks to influence the outcome of cases involving perceived threats to the state or to the partys dominant position. In an effort to increase judicial independence, the government transferred the authority of local courts from the Ministry of Justice to the Supreme Peoples Court in September 2002. However, there is little evidence to suggest that this move has improved the autonomy of judges. Vietnams judiciary is also hampered by a shortage of lawyers and undeveloped trial procedures. The CPVs influence over the judiciary is a major challenge to the country.

Future prospects

Lifting of capital account restrictions

Vietnams membership of the WTO, which took effect in January 2007, should ensure that the government will continue with its policy of liberalization. Despite its continued support for protectionist policies, the government is expected to ease capital account restrictions. However, it is unlikely that Vietnam will introduce full capital account liberalization in the near term. The removal of tariff and non-tariff barriers is expected to be a long and drawn-out process, especially considering the imposition of monitoring measures on garment exports by the US and the EUs decision to impose anti-dumping measures on leather shoes. Vietnam is likely to continue with its policies of liberalization, albeit rather slowly.

Future risks

Rising power of trade unions

Trade unions are a powerful political force in the country. Vietnam is attracting increas ed foreign investment, and so the protection of workers rights is considered to be more important than it was previously. In April 2010 workers went on strike at a Taiwan-owned footwear factory near Ho Chi Minh City to demand better pay and benefits. In another incident in April 2008 more than 20,000 Vietnamese workers went on strike, demanding a 20% increase to their $89 monthly salaries at a Taiwanese-owned factory that makes shoes for US apparel giant Nike. The scale of the protests is potentially damaging to the Vietnamese governments efforts to emerge as a favorable destination for FDI. In 2008 there were over 700 strikes, compared with 541 in 2007. The number of strikes dropped by 70% in 2009 to 216; however, high inflation is creating tensions, as workers are asking for higher wages in order to keep pace with the increased cost of living. Most of the strikes take place at foreign-owned enterprises, and involve workers protesting against poor working conditions and meager wages. The rising power of the labor unions will dent the credibility of the country as a viable destination for FDI.

High level of corruption

Vietnam has dangerously high levels of corruption. The National Assembly approved the Anti-Corruption Law in November 2005, which came into effect in June 2006. To tackle corruption at the highest levels, the National Steering Committee for Corruption Prevention and Control, headed by the prime minister, was created. However, the committee lacks full independence, which has raised questions about the impartiality of investigations. The committee will be placed in a very tight spot with regards to cases involving CPV politicians. Transparency Internationals 2010 Corruption Perceptions Index ranked Vietnam 116th out of 178 nations a marginal improvement from the 121st position the country recorded in 2008 with a score of 2.7 (0 equates to highly corrupt, and 10 equates to free from corruption). Corruption is perceived as being widespread in the country. The country is well behind other nations in the region, including Malaysia (56th), China (joint 78th), Thailand (joint 78th), and India (87th). Vietnam has to take measures to alleviate corruption in the country, as it can act as an impediment to potential foreign investors.b) Thailand Taxpayers are classified into resident and non-resident.

Resident means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year.

A non-resident is, however, subject to tax only on income from sources in Thailand.

Taxation

Taxable IncomeMarginal Taxable income

(baht)(baht)Tax Rate (%)

0 - 150,000 (2008 onwards)150,000Exempt

150,001- 500,000350,00010

500,001- 1,000,000500,00020

1,000,001 - 4,000,0003,000,00030

4,000,001 and over37

Types of incomeWithholding tax rate

1.Employment income5 - 37 %

2.Rents and prizes5 %

3.Ship rental charges1 %

4.Service and professional fees3 %

5.Public entertainer remuneration

-Thai resident5 %

-non-resident5 - 37 %

6. Advertising fees2 %

Trade Regulation

Thailand's government holds a very liberal attitude towards international business and trade.

Membership in World Trade Organization (WTO) and the Association of Southeast Asian Nations (ASEAN) organizations commits Thailand to the reduction and eventual removal of tariffs, duties, and non-tariff barriers to trade in an agreed upon timeframe.

The Export-Import Bank of Thailand is active in assisting exporters by providing them with financing options and the liquidity needed to expand and develop their markets.

The government grants certain privileges to foreign and domestic companies operating and exporting from its designated industrial zones, which range from reductions in taxation, lowered import duties to exemption from certain labor laws.

Judicial System

Three types of courts operate in the country

At the lowest level is the Court of First Instance, of which there are more than eighty throughout the Kingdom.

The second level of the court system is regional Courts of Appeal (Uthorn Court) which hear civil and criminal cases brought from all parts of the country and either reaffirms or revises the decision of the lower courts. At least two judges preside at each hearing.

The third level is the Dika or Supreme Court, which is also located in Bangkok. This court only hears appeals on points of fact, which are based on important material arguments. At least three judges must preside at each hearing. 6) Evironment Vietnam ThailandLocationSoutheastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and CambodiaSoutheastern Asia, bordering the Andaman Sea and the Gulf of Thailand, southeast of Burma

Geographic coordinates16 10 N, 107 50 E15 00 N, 100 00 E

Map referencesSoutheast AsiaSoutheast Asia

Areatotal:331,210 sq kmland:310,070 sq kmwater:21,140 sq kmtotal:513,120 sq kmland:510,890 sq kmwater:2,230 sq km

Area - comparativeslightly larger than New Mexicoslightly more than twice the size of Wyoming

Land boundariestotal:4,639 kmborder countries:Cambodia 1,228 km, China 1,281 km, Laos 2,130 kmtotal:4,863 kmborder countries:Burma 1,800 km, Cambodia 803 km, Laos 1,754 km, Malaysia 506 km

Coastline3,444 km (excludes islands)3,219 km

Maritime claimsterritorial sea:12 nmcontiguous zone:24 nmexclusive economic zone:200 nmcontinental shelf:200 nm or to the edge of the continental marginterritorial sea:12 nmexclusive economic zone:200 nmcontinental shelf:200 m depth or to the depth of exploitation

Climatetropical in south; monsoonal in north with hot, rainy season (May to September) and warm, dry season (October to March)tropical; rainy, warm, cloudy southwest monsoon (mid-May to September); dry, cool northeast monsoon (November to mid-March); southern isthmus always hot and humid

Terrainlow, flat delta in south and north; central highlands; hilly, mountainous in far north and northwestcentral plain; Khorat Plateau in the east; mountains elsewhere

Elevation extremeslowest point:South China Sea 0 mhighest point:Fan Si Pan 3,144 mlowest point:Gulf of Thailand 0 mhighest point:Doi Inthanon 2,576 m

Natural resourcesphosphates, coal, manganese, rare earth elements, bauxite, chromate, offshore oil and gas deposits, timber, hydropowertin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite, arable land

Land usearable land:20.14%permanent crops:6.93%other:72.93% (2005)arable land:27.54%permanent crops:6.93%other:65.53% (2005)

Irrigated land46,000 sq km (2003)64,150 sq km (2003)

Natural hazardsoccasional typhoons (May to January) with extensive flooding, especially in the Mekong River deltaland subsidence in Bangkok area resulting from the depletion of the water table; droughts

Environment - current issueslogging and slash-and-burn agricultural practices contribute to deforestation and soil degradation; water pollution and overfishing threaten marine life populations; groundwater contamination limits potable water supply; growing urban industrialization and population migration are rapidly degrading environment in Hanoi and Ho Chi Minh Cityair pollution from vehicle emissions; water pollution from organic and factory wastes; deforestation; soil erosion; wildlife populations threatened by illegal hunting

Environment - international agreementsparty to:Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Wetlandssigned, but not ratified:none of the selected agreementsparty to:Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Life Conservation, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlandssigned, but not ratified:Law of the Sea

Geography - noteextending 1,650 km north to south, the country is only 50 km across at its narrowest pointcontrols only land route from Asia to Malaysia and Singapore

Total renewable water resources891.2 cu km (1999)409.9 cu km (1999)

Freshwater withdrawal (domestic/industrial/agricultural)total:71.39 cu km/yr (8%/24%/68%)per capita:847 cu m/yr (2000)total:82.75 cu km/yr (2%/2%/95%)per capita:1,288 cu m/yr (2000)

III) References:http://en.wikipedia.org/wiki/Economy_of_Thailandhttp://www.worldbank.org/en/news/feature/2012/12/19/thailand-economic-monitor-december-2012-key-findingshttp://www.un.or.th/thailand/economy.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/vm.htmlhttp://asiasociety.org/policy/environment/climate-change-and-energy/real-cost-developing-vietnam