Article Outline
Vietnam’s national monetary unit is the new dông, which is divided into 100 xu (15,859 new dông equal U.S.$1; 2005 average). Until 1990 the only banking system within the country was The State Bank of Vietnam, with its headquarters in Hanoi. In 1990 the government established four independent commercial banks (for foreign trade, investment and construction, agricultural development, and industry and commerce) and allowed foreign banks to operate. The State Bank continues to perform general supervisory functions; it also controls the money supply and credit policies. The Bank of Foreign Trade is authorized to handle foreign currencies.
Modern tourism began in Vietnam during the colonial era, but it declined drastically during the long years of conflict after World War II. With the launching of economic reforms in 1986, the government opened the country to foreign travelers and has made a concerted effort to improve its tourist facilities as a means of earning hard currency. Old hotels like the Metropole in Hanoi and the Continental in Ho Chi Minh City have been renovated, and a number of new ones have been built in both cities. In addition, a number of foreign cruise lines stop at ports along the coast en route to Hong Kong and Singapore. In 2005, 3.5 million tourists from all parts of the world visited Vietnam. Most visitors make short trips to the major cities and the former imperial capital of Hue.
Prior to the French conquest, the political institutions of Vietnam were patterned after the Chinese model. Confucianism was the state ideology, and the emperor ruled with the assistance of mandarins—scholars trained in Confucian principles. That system was essentially discarded during the period of French colonial rule, although the Vietnamese emperor was still permitted a figurehead authority from his imperial palace in Hue. After the division of the country in 1954, the North established a Soviet-style Communist regime, while the government in the South created a parliamentary system patterned after those in the West. Neither became a practicing democracy. The Communist system of the North was extended to the entire country after reunification in 1976. Modern Vietnam has a unitary system of government with a strong central government, and exclusive power resides with the Vietnamese Communist Party, the sole legal party in the state.
After the end of French colonial rule in 1954, two independent governments emerged in Vietnam: the Republic of Vietnam (RVN) in the South, and the Democratic Republic of Vietnam (DRV) in the North. After the North won the Vietnam War and took control of all of Vietnam, the DRV became the Socialist Republic of Vietnam (SRV). The current constitution was promulgated in 1980 and was patterned after the Soviet model, which combined nominal democratic ideas, such as the concept of elections by secret ballot, with the Leninist concept of a dominant Communist party ruling by dictatorial means in the overall interests of the people. In 1992 the constitution was amended to reflect economic reforms undertaken in 1986 as well as a decision to reduce the role of the party in the governing process.
Under the constitution as amended in 1992, the head of state is a president, elected to a five-year term by the National Assembly from among its members. The president is advised by a National Defense and Security Council and is assisted by a cabinet composed of a prime minister, a deputy prime minister, and other senior ministers. All ministers are appointed by and accountable to the National Assembly.
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