Vietnam, officially the Socialist Republic of Vietnam, is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east. With a population of over 86 million, Vietnam is the 13th most populous country in the world.

      The people of Vietnam regained independence and broke away from China in AD 938 after their victory at the battle of Bạch Đằng River. Successive dynasties flourished along with geographic and political expansion deeper into Southeast Asia, until it was colonized by the French in the mid-19th century. Efforts to resist the French eventually led to their expulsion from the country in the mid-20th century, leaving a nation divided politically into two countries. Fighting between the two sides continued during the Vietnam War, ending with a North Vietnamese victory in 1975.

      Emerging from this prolonged military engagement, the war-ravaged nation was politically isolated. The government's centrally planned economic decisions hindered post-war reconstruction and its treatment of the losing side engendered more resentment than reconciliation. In 1986, it instituted economic and political reforms and began a path towards international reintegration. By 2000, it had established diplomatic relations with most nations. Its economic growth had been among the highest in the world in the past decade. These efforts culminated in Vietnam joining the World Trade Organization in 2007 and its successful bid to become a non-permanent member of the United Nations Security Council in 2008.

      Economy

      Vietnamese currency: 500 000 VNDHistorically, Vietnam has been an agricultural civilization based on wet rice cultivating.

      The Vietnam War destroyed much of the economy of Vietnam. Upon taking power, the Government created a planned economy for the nation. Collectivization of farms, factories and economic capital was implemented, and millions of people were put to work in government programs. For a decade, united Vietnam's economy was plagued with inefficiency and corruption in state programs, poor quality and underproduction and restrictions on economic activities and trade. It also suffered from the trade embargo from the United States and most of Europe after the Vietnam War. Subsequently, the trade partners of the Communist blocs began to erode. In 1986, the Sixth Party Congress introduced significant economic reforms with market economy elements as part of a broad economic reform package called "đổi mới" (Renovation). Private ownership was encouraged in industries, commerce and agriculture. Vietnam achieved around 8% annual GDP growth from 1990 to 1997 and continued at around 7% from 2000 to 2005, making it the world's second-fastest growing economy. Simultaneously, foreign investment grew threefold and domestic savings quintupled. Manufacturing, information technology and high-tech industries form a large and fast-growing part of the national economy. Vietnam is a relative newcomer to the oil business, but today it is the third-largest oil producer in Southeast Asia with output of 400,000 barrels per day (64,000 m³/d). Vietnam is one of Asia's most open economies: two-way trade is around 160% of GDP, more than twice the ratio for China and over four times India's.

      Vietnam is still a relatively poor country with an annual GDP of US$280.2 billion at purchasing power parity (2006 estimate). This translates to a purchasing power of about US$3,300 per capita (or US$726 per capita at the market exchange rate). Inflation rate was estimated at 7.5% per year in 2006. Deep poverty, defined as a percent of the population living under $1 per day, has declined significantly and is now smaller than that of China, India, and the Philippines.

      As a result of several land reform measures, Vietnam is now the largest producer of cashew nuts with a one-third global share and second largest rice exporter in the world after Thailand. Vietnam has the highest percent of land use for permanent crops, 6.93%, of any nation in the Greater Mekong Subregion. Besides rice, key exports are coffee, tea, rubber, and fishery products. However, agriculture's share of economic output has declined, falling as a share of GDP from 42% in 1989 to 20% in 2006, as production in other sectors of the economy has risen. According to the CIA World Fact Book, the unemployment rate in Vietnam is 4.3%. Among other steps taken in the process of transitioning to a market economy, Vietnam in July 2006 updated its intellectual property legislation to comply with TRIPS. Vietnam was accepted into the WTO on November 7, 2006. Vietnam's chief trading partners include China, Japan, Australia, ASEAN countries, the U.S. and Western European countries.