GDP growth averaged 6.8% per year from 1997 to 2004 even against the background of the Asian financial crisis and a global recession, and growth hit 8% in 2005 and 7.8% in 2006. Since 2001, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries.

Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime.

Vietnam joined the WTO in January 2007, following over a decade long negotiation process. This should provide an important boost to the economy and should help to ensure the continuation of liberalizing reforms.

• Agriculture in Vietnam has contributed significantly to the country’s economy, making up 24% of the GDP, 30% of their gross exportation value.
• In 2003, the GDP of agriculture, forestry and aquaculture was 131,998 billions VND (8.5 billions USD).
• Vietnam’s countryside has obtained a new appearance.
• Farmers’ living standards have improved.
• Agricultural commodities meet the needs of domestic and export markets.
• More than 40 million tons of rice has been exported, averaging 2.7 million tons per year in the past 15 years.
• Cultivation of other crops such as maize, coffee, tea, rubber, sugar-cane, etc. has developed significantly.
• The ratio of industrial crops and fruit trees has increased over 20 per cent compared with 1990.

1.3 Introduction to Vietnam Agricultural Engineering and Machinery

• The number of tractors has increased by 5.8 times since 1990.
• Domestic manufactured diesel engines have increased by 6.3 times since 1990.
• Electricity provided for agriculture production has increased 3.2-fold.
• The number of other farming, animal husbandry machines, and rural transportation means has considerably increased.
• The percentage of cultivated area prepared by machines annually is 54%.
• Total of power supplied merely by engines for agriculture, forestry production and agro-products processing is nearly 14 million horse powers.
• Average 0.5 horse power per one cultivated hectare.
• Positive changes have been made in the processing industry of agricultural and forestry products.
• Average growth rate of gross production value of the processing industry has been 8.3% over the past 5 years.
• The processing industry made 30% of the total industrial production value.
• A number of processing industries with advanced technologies and equipment (rice, sugar, coffee, rubber, tea, etc.) have emerged, making structural changes and raising export turnover.

Climate:
tropical in south; monsoonal in north with hot, rainy season (May to September) and warm, dry season (October to March)

Terrain:
low, flat delta in south and north; central highlands; hilly, mountainous in far north and northwest

Elevation extremes:
lowest point: South China Sea 0 m
highest point: Fan Si Pan 3,144 m

Natural resources:
phosphates, coal, manganese, bauxite, chromate, offshore oil and gas deposits, forests, hydropower

Land use:
arable land: 20.14%
permanent crops: 6.93%
other: 72.93% (2005)

Irrigated land:
30,000 sq km (2003)

Natural hazards:
occasional typhoons (May to January) with extensive flooding, especially in the Mekong River delt

Current environmental issues:
logging and slash-and-burn agricultural practices contribute to deforestation and soil degradation; water pollution and overfishing threaten marine life populations; groundwater contamination limits potable water supply; growing urban industrialization and population migration are rapidly degrading environment in Hanoi and Ho Chi Minh City