Vietnam Tourism Industry

Currently, the petroleum was the main source, followed by 25% of coal and biomass. The oil reserve in Vietnam is in the range of 270-500 million tons. In 2004, the production of oil rose to 403,300,000 barrels per day. Anthracite coal in Vietnam is approximated 3. 7 billion tons. In 2003, the coal that was produced was 19 million tons, which is an increase from the 1999, 9. 6 million tons. The potential reserve of natural gas is 1. 3 trillion cubic meters. 2. 26 billion cubic meters of gas were brought in 2002.

By 2004, Vietnam government with the collaboration of Russia constructed a nuclear power plant. Crude oil is the leading export for Vietnam totaling 17 million tons by 2002 and in 2004; it accounted to 22% of all export earnings. Most of the exported oil is crude because the government has limited refining capacity. The operational refinery has a capacity of 800,000 barrels per day. The refined petroleum accounted 10. 2% of the total imports in the year 2002. Tourism is important for the modern economy of Vietnam. For example in 2003, the country received 2.

4 million internal arrivals and in 2004 received 2. 9 million. The tourism industry rose by 63% from 1999 to 2004, but fell in 2003 because of Severe Acute Respiratory Syndrome (SARS). Most international arrivals came from China, which accounted 27%, Japan, United States, and South Korea accounted another 27%. Tourism industry is a key economic plan that brings in foreign exchange (Smith 2008, pp. 128). Foreign trade, external debt and foreign investment The external debt in 2004 was valued at US$16. 6 billion equivalent to 37% of GDP.

The foreign direct investment (deposit mobilization of commercial banks in nepal) commitments for the period 1988 to 2004 amounted to US$46 billion. Fifty eight percent of this value had been dispersed by December 2004, half of which was dispersed to Hanoi and Ho Chi City. The sector that is licensed by FDI is construction and industry. Other sectors are the fisheries, forestry, agriculture, tourism, transport and gas. However, foreign investors regard Vietnam as a risky destination. The data was obtained from a survey that was carried out by Japan External Trade Organization.

The reason for this negative picture is office rentals, cost of utilities and the skilled labor. Additionally, bureaucracy and state corruption, and lack of transparent regulations and was ranked 102nd in 2004 Corruption Perceptions Index. The country receives support from the World Bank, the aim of the World Bank support is enhancement of sustainable development, transition to market economy and promotion of good governance. By 2004, the country received pledges of US$29 billion. Common donors are the World Bank, Japan and Asian Development Bank. Foreign pledge for 2007 was US$21.

3 billion and the first part of 2008 was US$31. 6 billion. Monetary System: Banking and Finance The central bank of the country is State Bank of Vietnam, which was originally known as the National Bank of Vietnam. The State Bank is responsible for national financial responsibilities and performs some duties of a normal commercial bank. It has the head office in Hanoi with numerous provincial branches. Other banks include the Bank of Agricultural Development; that provides loans to fishing and agriculture and the Foreign Trade Bank; that is responsible for foreign payments.