SOUTH VIETNAM is the rice-bowl of the country formerly known as Vietnam, with North Vietnam being noted for its industrial complexes. With the division of the country in 1955, both sides suffered.
The North was left without agricultural products formerly available from the South and famines have occurred. The South, on the other hand, was left with little or no industry. With the help of the United States Aid Program, and loans from other friendly countries, the government of South Vietnam has attempted to build a new line of industries to partially meet the country’s needs.
On the two, North Vietnam has suffered the most from their lack of agricultural products, and this may well be one of the driving reasons behind the insurgency. They desperately need the rice bowl of the South.
Latest figures for North Vietnam’s exports and imports are not available, so this chapter will deal only with the southern half of Vietnam.
Major Imports
and Supplies
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The United States’ commercial firms are the biggest suppliers to South Vietnam. In addition to the Agency for International Development (AID) program, the largest amounts of paid imports came from the United States. Others at the top of the list include France, Nationalist China, Japan, and Indonesia. Major imported items include iron and steel products, machinery and equipment, yarns for the local textile industry, petroleum products, fertilizer, and prefabricated parts for assembly in Vietnam of such items as small motor vehicles, watches, clocks, transistor radios, etc.
Main Buyers
of Vietnam
Products
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Contrasting to the sale of products to Vietnam, the United States buys very from the country. The top buyers from South Vietnam are France, Malaysia, and Philippines, West Germany and Great Britain (in descending order of value).
Rubber and rice bounce back and forth from first to second place periodically as the two major exports. Tea ranks third and an unusual product is fourth–duck feathers. Almost 1000 tons of the downy product are exported annually, mostly to West Germany. In 1965 the Viet-Cong insurgency took its toll on the ability of South Vietnam to keep up its rising trend in exports. For the first time in recent years, it was necessary to import rice from the United States due to the inability to get the country ‘s huge rice crop to market within the confines of South Vietnam. With the new American emphasis in the country, it is anticipated that exports will race back to their previous improved level and make even more progress.
AGRICULTURE
SOUTH VIETNAM is basically a country of agriculture. Four-fifths of its population work in its pursuit. The two most important crops are those of rice and rubber.
Exports in an average year are around 250,000 metric tons, valued at approximately 25 million dollars. In 1965, the figure suddenly dropped due to the Viet-Cong insurgency. The figure quoted here for an average year could be even higher were it not for the communists who make transportation difficult, if not impossible in many cases. Often, rice is burned because of the inability to get it safely to market, and to deny its use to the Viet-Cong.
Rice is grown in a major portion of South Vietnam with the principal production are in the Mekong River Delta. Rice and fish are the principal foods in the Vietnamese diet.
Vietnam has been the fifth largest rubber producing area in the world. There has been some decline in the value of the rubber exported, due to the lower world rubber prices, and also because of Viet-Cong interference. The export value of rubber runs to approximately 30 million dollars per year at the present time. The French own most of the rubber plantations and are often forced to pay taxes to the Viet-Cong to be spared from their harassment.
Vietnam’s tea exports have increased steadily since 1960 with the latest figure showing an export of 2,000 tons in one year. Most of the tea exported is black tea, and the main purchasers are the United Kingdom and France. Green tea is consumed locally and only a small amount is exported. Tea production could be increased greatly, as the Rural Affairs Department in Vietnam reports that there are thousands of available acres in the Highlands which are suitable for tea production.
One of the most unusual industries is that of the production of duck feathers which are the fourth largest export of South Vietnam. The raw material, that of the ducks, is locally produced. Duck is well-liked for eating, and the feathers and down are a financial bonus in Vietnam’s economy.
Other
Agricultural
Products
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In addition to these two major crops, an intensive effort is being made, with the help of the United States, to diversify and improve the production of the other agricultural products. It is planned that these new and improved areas of crop production will help satisfy local needs and allow for exportation of many items.
Some of them are:
CACAO
"Vietnam is ideally suited for this crop and could be one of the larger exporters of the world’s cacao supply to be used for making cocoa and chocolate. An American AID project, begun in 1959 with the distribution of 8,000 cacao plants, is progressing fairly well, despite the insurgency.
COCONUT
Production is ample to meet the country’s needs, but it is now being increased in order to have more of the product available for export. It is an item with high nutritive value, said to be the same as rice, and can be used in making soap, candles, and margarine.
COFFEE
Vietnam receives a higher coffee bean yield per acre of land than do other coffee producing countries in the world. Since the Vietnamese do not drink much coffee, most of it is exported. West Germany is the largest purchaser. Coffee was first planted in Vietnam in 1885 and South Vietnam now produces almost 4,000 tons annually. Most of it is grown in the Highlands.
DUCK EGGS
Exported in large numbers to other Asian countries and also well-liked by the Vietnamese in their diet. They especially like partially hatched duck eggs. These are sold on the street in the cities and towns.
FORESTRY
The valuable resource of forestry is for the most part unusable due to the Viet-Cong control of wooded areas. Forest stands cover almost two and one-half million acres of South Vietnam. Approximately 85 per cent of these woods are classified as hardwoods. The remaining trees are mostly mangrove, pine, bamboo, and other related species. Pine trees are found primarily around Dalat and a two and three leaf pine is available. Mangrove trees that grow along the coasts south of Ca-Mau yield a high grade charcoal.
KENAF FIBRE
Primarily grown in the highlands or the mountain are of Vietnam. It is very good for making gunny sacks. Vietnam is the third largest world supplier of this product. The U.S. Aid program has helped develop this industry to a greater extent with improved methods and a better seed from El Salvador.
LACQUER
Lacquer has always been a prized export from Vietnam in the foreign market. Most of it came from North Vietnam, but experiments have shown that lacquer bearing trees can be grown with amazing success in the Highlands of South Vietnam.
PALM OIL
Since this oil does not become rancid and can be used for making margarine which does not require refrigeration, it is considered an ideal product in Vietnam. It has a higher vitamin and mineral content than coconut oil and is preferred for cooking. In addition, it can be used in the manufacture of soap, glycerine, and candles. The product is exported, though not on a large at the present time because of the war’s effect on production.
PEANUTS
This is a quick growing crop which means money in the pocket for the farmer. It is mainly grown in the hilly areas and is one of the farmer’s most important cash crops. Export of the item has been established.
SEA SWALLOW’S NESTS
A large number of these nests are used domestically and exported from the country. Not only are they well-liked for their gourmet flavor, they are also sought for medicinal purposes. The Emperor Minh-Mang, who had over 150 children, credited his extraordinary virility to eating sea-swallow’s nests. In addition to the nests, traditional medical practitioners use the bird’s body and wastes eliminated from their body in making oriental medicines. Vietnam is a most favorable habitat for the sea swallow.
SUGAR
New sugar mills, built by the Japanese and their investment capital, are scheduled to begin production on a large scale in 1967. Sugar cane can easily be grown in Vietnam but production has never met the needs of the country. Consequently, large amounts have to be imported each year, causing a drain on foreign currency. Efforts are being made to bring the production up to the needs require. In times of peace, Vietnam could become one of the leading sugar producers in the world.
TOBACCO
Production of this popular item is increasing and there are firms from other countries working in Vietnam on its production and export. In addition, the tobacco produced is satisfactory to the local requirements, except for those Vietnamese with more sophisticated tastes who insist on smoking imported brands.
OTHER FOOD PRODUCE
Practically all of the vegetables and fruits grown are consumed within the country, especially the highly perishable types. Bananas and avocados are exported in fairly large quantities, however, when in season, mangoes and papaya are also exported. In addition, some commercial firms are producing meat tenderizer made from Vietnam’s papayas. The fruits and vegetables in Vietnam are superb. especially those grown in and around the city of Dalat. An unusual feature there is that the crops grow throughout the year and the land is rarely left unused. Various fruits and vegetables are grown at different times during the year on the same land.
This is one area that is far behind the need for the products. Both Australia and the United States have participated in programs to develop dairy production in Vietnam. The supply is so inferior to the demand that condensed milk if often rationed in the country.
Improvement in this area has been brought about by US government assistance and a Vietnamese sponsored program aimed at eradicating disease in livestock through vaccination. Superior results have been obtained in the field of hog raising. Hog raising is a big business for the small farmer and in 1965 it was officially estimated that under the accelerated program there was now one per each four citizens in South Vietnam. Beef consumption is on the rise, a different trend from the past when many people refrained from eating it.
Cinnamon is an important dollar export in Vietnam. It has also been very important to certain tribes in the Highlands who have benefit economically from the sale of cinnamon. Pepper production is still more or less in the experimental stages in Vietnam, except for the area called Haut-Donnai.
FISHERY
SOUTH VIETNAM’S coastal area of approximately 1,260 miles is literally full of shrimp and crayfish, and over 50 species of fish which are of commercial value. There are also more than 200 other varieties of fish which are not of commercial value but are consumed by the local population. In addition to the coastal waters, there are numerous rivers and canals which hold a considerable supply of fish.
Commercial fishing has rapidly improved in the last few years due to a Vietnamese Government sponsored program supported by US which accomplished the following: modernized and motorized the fishing fleet; constructed fish landings, including pier, market, and parking space; built cold-storage facilities, developed fishery cooperatives through which members could obtain loans for equipment; and conducted experimental work in fish rearing.
An extensive pond-rearing program has helped to increase the fresh-water catch, and the salt-water catch is greater because fishermen can go further in their motorized crafts. Over 10,000 of Vietnam’s 39,000 fishing junks were motorized by the end of 1964.
Fish-finding devices purchased by the Vietnamese Fisheries Directorate have paid for themselves many times over by locating large concentrations of fish which has lead to greater domestic and exports sales.
Traditional fishing nets are being discarded by even the oldest and most experienced fishermen in Vietnam as they have seen that they can increase their catch as much as 250% by using nylon nets.
A considerable portion of the fish catch is used to make the local sauce so popular with the natives. It is called "Nuoc-Mam." The Vietnamese use it even more often than Americans use catsup. It is part of their everyday diet and comes in many different qualities.
Americans often complain of the smell of nuoc-mam as it seems to linger in the air long after dinner-time in Vietnamese neighborhoods.
The fish is highly salted and placed in vats where it is compressed for four month to one year. As it ages, bacteria causes fermentation and the smell to an American is interpreted as "spoiled fish.’ The juice is drained off the vat and bottled. This is nuoc-mam.
Nuoc-mam is rich in acids, minerals, and vitamins. A by-product of the fish residue in the manufacture of nouc-mam has been found to be an excellent fertilizer for rice and vegetable products. Another by-product is the extraction of sardine oil for use in oil-burning lamps, soap manufacture, paints, lubrication of small motors, and tanning of hides.
The Oceanography Institute in Nha-Trang has done most of the research which has been responsible for the vast improvement in Vietnam’s fishing industry.
They are found in great abundance in Vietnam and have a delicate flavor. Plans were underway to export them in tremendous amounts, but some technical difficulties regarding preparation and refrigeration have not been completely solved. Some frozen and dried shrimp are being exported at this time, but not near the possible potential.
INDUSTRY
WHEN THE country of Vietnam was divided in 1954, the South had virtually no industry and the economy was almost completely agricultural.
A new and rapidly growing industrial base is in operation with plans for more to come in the future. All of this has been accomplished despite the warfare going on.
On the whole, the Viet-Cong have done little to destroy what is being built in the industrial complex. Perhaps they believe it will be for their use in the future should they gain control of South Vietnam. In view of the strong American stand in the country, it would not be surprising to see the communists begin to try to wreck the progress that has already been made.
Much of the development in South Vietnam has been accomplished with the help and financial assistance of the United States Aid Program. Private industries and investors have also promoted the country’s industrial development.
INDUSTRIAL DEVELOPMENT
A drastic shortage of power has hampered Vietnam industrial development. Most of Vietnam’s rural areas have no electric power except that provided by gasoline generators. The oil lamp and the candle are still the sources of light today in these communities as they have been for generations.
Fifteen privately-owned companies have supplied the power available in South Vietnam’s major cities until this time. The gross deficiency has ended, however, in most urban areas with the completion of the 44 million dollar Danhim Power Plant, built mainly with Japanese Reparation Funds, and the An Hoa Nong Son industrial complex thermal plant, financed jointly by France and West Germany.
The An Hoa Nong Son plant produces 20,000 KW and the Danhim (or Da-Nhim) plant will have an eventual capacity of 500,000 KW hours.
The Triga nuclear reactor, situated in the city of Dalat, 145 miles northeast of Saigon, is the first of this concept in research reactors to be put to use in Southeast Asia.
The reactor went into operation in February 1963 and is used for the production of electricity. In addition, research in other peaceful uses of nuclear power is conducted at the center.
The financing was arranged by a $350,00 "Atoms for Peace" grant from the United States government.
Scientists are utilizing the facilities to study ways to guard man’s health and to provide more abundant food crops.
The Triga Mark II self-regulating reactor was built and installed at Dalat by the General Atomic Division of the General Dynamics Corporation of San Diego, California.
Miscellaneous
Power Sources
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The US Aid program has introduced simple windmills as a means of power for pumping water for irrigation. This was previously a foot-pumping operation which took the farmer away from other work.
Windmills are also used to generate power to charge batteries, which are in turn used to power small necessities, such as village alarm systems, small radio communication outfits, etc.
The construction of the 26 million water supply system will soon be completed at Thu Duc, near Saigon. There will also be a treatment plant which will help in the fight against water-borne diseases so prevalent in the area serviced. It will be more than ample for Saigon’s water needs and the new industrial complexes in the area. A new distribution system including 45,000 meters of cast-iron pipes is also included in the project.
There has always been a lack of adequate transportation in the country which has hampered progress and development in many fields. The most critical need is for a good highway system for fast and cheap transportation of people and merchandise.
The Viet-Cong have made matters worse by sabotaging the available roads. The re-building of these roads is one of the leading tasks of the Vietnam government with the help of the U.S. military and economic programs.
An example of what can be accomplished is the beautiful 20 mile four-lane highway leading from Saigon to Bien-Hoa. It was financed by a 35 million dollar grant from US Aid and approximately one-half million dollars paid by the Vietnamese government to property owners along the road’s path. It connects Saigon with the new industrial complexes being developed at Thu-Duc. As a result of the highway, many other new industries have sprung up along the side of the highway.
The government of the country owns the trans-Vietnam Railway, 1,337 kilometers in length. Movement of passengers and cargo is long, tedious and extremely risky. Between 1961 and 1964, there were 795 sabotage cases with 16 rail men killed and 128 injured. Despite this situation, professional train men stick to their jobs.
Old rolling stock is being replaced in a modernization program. A good portion of this is being financed through a seven and a half-million dollar loan fund between the U.S. and Vietnam.
Air Vietnam is the only scheduled airline operating within the country. The importance of this airline has increased because of the Viet-Cong agitation along the roads, railways, and waterways.
Water lanes via rivers and canals are an important feature in Vietnam’s transportation system, and is confined mainly to the Mekong delta. Over 85% of the delta’s produce reaches Saigon by water. The cost of moving goods in this manner is two-thirds less than it would be by road. Over 150,000 people make their living in the water transportation industry.
A government sponsored dredging program for more and better canals is in progress. Part of this is financed by the US Aid Mission.
The Viet-Cong have also made the canals one of their targets as well as a method of transporting their own goods. River patrols check hundreds of craft every day, but it is near to impossible to check them all.
Work has begun on the construction of the largest industrial project in South Vietnam. Twelve factories will be set up around the Nong-Son Coal Mine on the Thu-Bon River near Da-Nang. The complex will produce fertilizer, cement, paper pulp, dry ice for fisheries, glass, and electric power. The main source of raw material will be the anthracite from the Nong-Son Coal Mine, with an estimated production of 200,000 tons a year by 1966.
The location offers a port within 40 miles and natural resources such as magnetite, hematite, limonite, gold, copper, lead, graphite, and tin can be exploited. Manpower is also abundant in the area.
The most important dividend from the project will be the saving of foreign exchange now spent to import fertilizer and coal which is used in the production of electric power.
Another industrial complex is also in production at Thu-Duc near Saigon.
OTHER INDUSTRIES BEING DEVELOPED
One of the most rapid and intensive fields of development has been in textiles with new, modern factories with the best equipment now producing 90% of the country’s requirements for cloth. There are now over 100,000 spindles and 3,000 looms in operation in South Vietnam. Over 40 million pounds of US surplus cotton is processed annually. In 1963, Vietnam shifted from important to exporting silk, a smaller but equally dramatic phase of the textile industry.
There was no plastic production in South Vietnam in 1955 when the two countries were divided, but today’s production covers the country’s requirements.
Two new paper mills have been built near Biet-Hoa which is a short distances from Saigon. The country is within reach of satisfying its needs in a few years. At the present time, there is still a shortage of newsprint and Saigon’s numerous newspapers often complain of the shortage. Paper products totaling 17,000 tons were produced in 1964.
Over 800,000 bicycle tires were produced in the south in 1964. Factories are being planned for the manufacture of car and truck tires. Rubber soles for shoes are being produced now in large quantities.
Batteries and
Light Bulbs
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Almost one million flashlight batteries are being produced annually and car batteries are also in production. Sufficient light bulbs for the country are being produced.
Cement, ceramic products, aluminum ware, glassware, jute and "kenaf" bag manufacturing, pencil manufacture, pharmaceuticals, toilet articles, and wood products are some of the other industries which are being developed.
The largest industrial firms produce beer and soft drinks, electric power, matches, scooters and cycles, cigarettes, printed materials, ironware, metal-ware, rubber products, "nuoc-mam," and furniture.
Handicraft industries are very important to the rural people. (See Chapter 7 for more information.)
