VN news (July 27)

[Dam Son <son@fermi.phys.washington.edu>]

Vietnam celebrates 50th Anniversary of War Veterans, Invalids
Vietnam seven month trade deficit 1.773 billion dollars 

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Vietnam celebrates 50th Anniversary of War Veterans, Invalids

Hanoi, July 27 (AFP) - Vietnam honoured its fallen war heroes and wounded
veterans on Sunday with countrywide celebrations of the 5Oth Anniversary
of War Invalids and Martyrs Day.

Top officials from the Communist Party, the army and the National Assembly
marked a debt of gratitude in a solemn ceremony in Hanoi to those who
fought for national independence against the French and Americans.

The official Communist Nhan Dan newspaper and the army newspaper Quan
Doi Nhan Dan were devoted nearly exclusively to coverage of the event
on Sunday.

"When one drinks water, one must think of the source," wrote the official
Vietnam News Agency (VNA), describing the motto of the day to honour
more than six million people who gave "great service to the nation."

While nearly half of Vietnam's population is under the age of 25 and
have no recollection of war, their parents and grandparents have lost
none of their patriotic fervour during peace.

Take Nguyen Van Vu, a 68 year-old invalid who fought from 1951 to 1971
and was honoured at a ceremony on Saturday in Hanoi.

When asked if Vietnam would ever go to war again, his back stiffened
with pride and his voice trembled with emotion.

"If anyone threatens Vietnam we must call on our children and struggle
for independence, even until we spill the very last drop of blood.

The Sunday edition of the Vietnam News daily carried an article entitled
"Agent Orange and Conscience of American People," chronicling the suffering
of millions of people Vietnam claims were affected by the toxic spray
used by the United States in the war.

The government spends about 225 million dollars, or about 90 dollars
per person a year supporting some 2.5 million invalids, heroic mothers
and orphans, the VNA said.

Nearly 3,000 national and local war martyr cemetaries and 1,000 memorials
have been built countrywide.

Earlier this week Vietnam inaugurated the newly refurbished Highway Nine
War Cemetary and Memorial containing the remains of 10,000 soldiers who
died in Central Quang Tri Province and neighbouring Laos, a region which
saw some of the fiercest fighting during the war.

Vietnam lost more than three million people in the war against the Americans,
and hundreds of thousands fighting the French.

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Vietnam seven month trade deficit 1.773 billion dollars 

Hanoi, July 27 (AFP) - Vietnam recorded a trade deficit for the seven
months ending July 25 of 1.477 billion dollars, falling 37.6 percent
from a year earlier, according to official statistics released at the
weekend.

The drop in the deficit came on the back of a healthy growth in exports
and stiff import restrictions causing the import bill to shrink by 1.3
percent during the first seven months.

Exports reached grew 25.2 percent to 4.86 billion dollars for the seven
months ended July 25, compared to the year-earlier period, according
to the General Statistics Office.

The import bill during the first seven months ended July 24 shrunk 1.3
percent percent to 6.63 billion dollars compared to the same period last
year because of strict import restrictions on key commodities including
steel, automobiles and cement.

However the deficit for the month ended July 25 grew 31 percent to 350
million dollars from 266 million for the month ended June 25.

During the first seven months, garment exports rose 38.3 percent to 650
million dollars while footware exports jumped 78.1 percent to 552 million
dollars. These two sectors accounted for nearly 23 percent of Vietnam's
export earnings.

Steel imports plummeted 44.8 percent to 560 tonnes, cement imports 16.4
percent and fully assembled automobiles 21.4 percent to 11335 units during
the first seven months.

However economists questioned the wisdom of shielding inefficient domestic
industries, especially in the state sector, behind stiff import barriers.

" Vietnam needs to move to a change in the structure and quality of its
imports which are essential for growth," said one Vietnamese economist.

Others said Vietnam had committed itself to trade liberalization within
the Association of Southeast Asian Nations (ASEAN) Free Trade Area, and
that more protection now implied a more painful adjustment when import
barriers are dismantled by 2005.

The Vietnamese economist stressed the need for Vietnam to pursue a more
exported oriented strategy, concentrating on value added activities.

"How long can we sustain growth of raw materials like oil, coffee, and
rice," he asks.

Others said Vietnam's two top industrial products, garments and shoes,
have little domestic value added apart from labour.

Motorbikes, the main consumer durable purchase in Vietnam, saw a 26.8
percent drop in imported units and kits.

However the deficit during the month to July 24 was up 31.6 percent to
350 million dollars compared with the month ended June 25.

However the 1.28 billion dollars worth of imports by foreign invested
enterprises grew 10.1 percent, accounting for nearly 20 percent of the
import bill.

Economists pointed to a general slowdown in industrial growth as contributing
to the stagnation of imports.

In its report, the government acknowledged that industrial growth in
the state sector had slowed to 10.4 percent from more than 13 percent
a year earlier, blaming competition from imports, obselete technologies
and insufficient access to credit.

Only two key imports rose during the first seven months -- fuel rising
19.4 percent in volume terms and clinker for cement up 1.4 percent.

Exports from foreign invested enterprises accounted for 9.8 percent of
total exports during the first seven months to 476.6 million dollars,
representing a 14 percent increase.

Vietnam provides preliminary estimates for trade on the 25 of each month
and the figures are often subject to dramatic revision.

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