INDONESIA

HISTORICAL BACKGROUND

Prehistory: Archaeological evidence indicates that ancestors of modern humans

occupied sites in Central and East Java as early as 1.9 million years ago;
presumably, these hominids were widely distributed in other areas. Fossils were
found in 2003 of a tiny species of ancient hominid (homo floresiensis) that lived
up until at least 18,000 years ago on the island of Flores in the Lesser Sunda
Islands. There is evidence of modern humans as early as about 40,000 years
ago, but they may have been present much earlier. By about 5,000 years ago,
the circulation of peoples within the archipelago and the absorption of influences
from outside had begun to create a diverse but related complex of cultures often
identified as Austronesian. What is today Indonesia lay at or near the center of
this complex, which eventually spread east throughout the Pacific, and west as
far as Madagascar.

Early History: Although Indonesian peoples clearly had contact with the outside
world at an early date (cloves, found only in Maluku, had made their way to the
Middle East as early as 4,000 years ago), physical evidence in the archipelago is
much later. Sites containing Indian trade goods now date at about 400 B.C., and
the first inscriptions (in eastern Kalimantan and West Java) at about 375–400
B.C. The first formal kingdoms of which we have extensive knowledge are
Srivijaya (flourished c. A.D. 550–c. 1050), a Buddhist trading polity whose power
was centered in the region of present-day Palembang and reached to coastal
areas on the Malaysian peninsula and elsewhere, and Mataram, in Central Java,
where magnificent Buddhist and Hindu monuments such as Borobudur and
Prambanan were constructed in the eighth and ninth centuries. The greatest of
the subsequent Hindu-Buddhist states, the empire of Majapahit centered in East
Java, claimed hegemony from the late thirteenth to early sixteenth centuries over
a wide trading region stretching from Sumatra to Maluku.

Islam entered the archipelago in about the eleventh century, but significant
conversions did not take place for two centuries or more, beginning with Pasai
(North Sumatra) at the turn of the fourteenth century and going on to Makasar
and Central Java in the seventeenth century. Contacts from China deepened
between the tenth and fourteenth centuries as a result of growing trade, but
Mongol attempts to control Javanese power (in the late thirteenth century) failed,
and early Ming dynasty (1368–1644) efforts to exercise great political and
economic influence were fleeting. It was at this time also that Western visitors
began appearing, starting with Marco Polo in the late thirteenth century and
continuing with the Portuguese and Spanish in the sixteenth century. They were
soon followed by the Dutch (1596) and the English (1601). Europeans affected
trade and politics in specific places and periods, but for most of the archipelago
beyond Java and parts of Maluku, colonial rule did not set in until the mid- or late
nineteenth century.

Colonial Period: Dutch power in the archipelago grew very gradually, and

colonial rule was not a goal of the Dutch East India Company (VOC), which
dominated trade from Amsterdam and, after the early seventeenth century, a
fortified port called Batavia (now Jakarta) in West Java. But on Java local
realities produced, by the mid-eighteenth century, a symbiotic Dutch-Javan
relationship that survived the bankruptcy of the VOC in 1799 and soon took the
shape of a colonial administration, which grew and consolidated during the late
1800s. In the first decades of the twentieth century, a modern Dutch colonial
state extended its control to most of the area we now call Indonesia.
Simultaneously, some of the peoples ruled by this state discovered nationalism;
the first groups date from the early 1900s, and by the 1920s and 1930s an array
of modern political organizations and leaders, including the well-known
nationalist figure Sukarno (1901–70), came to the fore. The struggle between the
Dutch colonial government and the Indonesian nationalist movement was well
under way when the Japanese occupied the Indies in 1942. They remained until
the end of World War II in August 1945.
An early 18th century Dutch map from a time when only the north coastal ports of Java
were well known to the Dutch.

Independence Period: On August 17, 1945, Sukarno and Mohammad Hatta

proclaimed the independent Republic of Indonesia with Sukarno as president and
Hatta as vice president. Allied forces (mostly British and British Indian troops) did
not arrive until six weeks later, by which time the republic had begun to establish
itself and nationalist pride had burgeoned. The period October-December 1945
was filled with violent conflict in which Indonesians made it clear they would
defend their independence with their lifeblood. Forcing the Dutch to negotiate
with the republic for an end to hostilities, the British withdrew in late 1946. The
republic subsequently survived two Dutch “police actions” and an internal
communist rebellion, and on December 27, 1949, The Hague formally
recognized the sovereignty of a federated Republic of the United States of
Indonesia, which a year later was formed into a unitary Republic of Indonesia.

Despite the holding of democratic elections in 1955, the years following the
struggle for independence were characterized by political and economic difficulty:
regional dissidence, attempted assassinations and coups d’état, military-civilian
conflict, and economic stagnation. A period of Guided Democracy was
announced in 1959 by Sukarno, who in September 1963 proclaimed himself
president-for-life and presided over a political system in which the civilian
nationalist leadership, much of the Islamic leadership, the large Indonesian
Communist Party (PKI), and the army were all at odds. This tense and hostile
atmosphere was broken on September 30, 1965, with what appears to have
been an attempted PKI coup against the Sukarno government. The precise
circumstances remain unclear, but the immediate result was that a “New Order”
coalition of students, intellectuals, Muslims, and the army brought about a
military-dominated government that removed Sukarno and permitted a broad and
deadly assault on communists, especially on Java, Bali, and Sumatra. In late
1965 and early 1966, an estimated 500,000 Indonesian communists and
suspected communists were killed and many more arrested.

General Suharto was the

second President of
Indonesia, holding the
office from 1967 to 1998.

On March 11, 1966, power was transferred from a seriously ill Sukarno to a high-
ranking army officer, Suharto; the PKI was formally banned the following day.
Suharto became the acting president on March 12, 1967, and the New Order era
began.

The New Order era, which lasted for more than 30 years, has a mixed record.
Like Guided Democracy, it was authoritarian, but it was more successful in
bringing stability to the nation. Unlike Guided Democracy, its economic
achievements were enormous and the well-being of the majority of Indonesians
undeniably improved. Average life expectancy, for example, increased from 46 to
65.5 years. On the other hand, the state’s heavy involvement in banking and
industry, especially the petroleum and natural gas sectors, worked against
competition and encouraged corruption on a large scale. Heavy-handed political
control and propagandizing of a national ideology may have aided stability, but
also did not prepare the nation for a modern political existence. A modernizing,
educated, and better-off middle class grew, but gained little or no political clout;
poverty was reduced, but some particularly severe pockets appeared to be
intractable. Suharto provided strong leadership, but he did not provide for a wise
transition and, in his last years, clung to power and favored family and
friends. East Timor, which had been forcibly annexed to Indonesia in 1976, saw
bitter conflict between the Indonesian military and local independence
movements. When the Asian financial crisis hit in 1997–98, the New Order lost
the economic justification that had guaranteed much of its public support, and
there was a widespread call for Suharto to step down. He resigned on May 21,
1998, little more than two months after being selected for his seventh term as
president.

Suharto was succeeded by Bucharuddin Jusuf Habibie, who sought first to

resolve the East Timor situation and begin a new and more open electoral
process. In 1999, following Indonesia’s first freely contested parliamentary
elections since 1955, Abdurrahman Wahid, well-known as both a progressive
intellectual and as leader of Indonesia’s largest Muslim organization (Nahdlatul
Ulama, NU) became president. His quirky and often uncompromising leadership
style, and questions about both his competency and his health, brought him
increasing opposition and eventually serious threats of impeachment. He was
dismissed from office in July 2001 in favor of Megawati Sukarnoputri, his vice
president and head of the Indonesian Democratic Party of Struggle (PDI-P).
Megawati, Sukarno’s eldest daughter, was decisively defeated in the September
2004 presidential runoff election by the Democratic Party candidate, retired army
general Susilo Bambang Yudhoyono. Yudhoyono was sworn in as president in
October 2004.
Indonesia, country located off the coast of mainland Southeast Asia in
the Indian and Pacific oceans. It is an archipelago that lies across
the Equator and spans a distance equivalent to one-eighth of Earth’s
circumference. Its islands can be grouped into the Greater Sunda
Islands of Sumatra (Sumatera), Java (Jawa), the southern extent
of Borneo (Kalimantan), and Celebes (Sulawesi); the Lesser Sunda Islands
(Nusa Tenggara) of Bali and a chain of islands that runs eastward
through Timor; the Moluccas (Maluku) between Celebes and the island of New
Guinea; and the western extent of New Guinea (generally known as Papua).
The capital, Jakarta, is located near the northwestern coast of Java. In the
early 21st century Indonesia was the most populous country in Southeast Asia
and the fourth most populous in the world.

MALAYSIA

Summary Of Malaysia’s History

Malaysia’s history is said to have started from the Sultanate of Malacca which was around 1400 AD.
At the time of its glory, the Sultanate Territories covered most of the East Coast of Peninsular
Malaysia and Sumatra. Malacca emerged as a glorious Government because of its strategic location
which was the meeting point between East Asia and the Middle East. This situation allowed Malacca
to emerge as a major trading center for spice trade, especially in Southeast Asia. Islam was the
main religion which emerged and became the main religion of the residents because the Ruler
himself had professed the religion. 

In 1511, Malacca fell into the hands of the Portuguese and that was the beginning of the colonial era
in Malaya. After that, Malaya fell into the hands of the Dutch in 1641 and British in 1824 through the
Anglo–Dutch Treaty. British colonization was the longest compared to others. The British had
integrated all the Malayan administration which was previously managed by the Malay Rulers with
the help of state dignitaries. The British intervention had aroused dissatisfaction among the local
population. Some individuals rise up against the colonial yet it was easily defeated by the British as
their efforts were more towards individuality. Among the heroes that went against the colonialists
were Dol Said, Tok Janggut, Datuk Bahaman, Rentap, Dato Maharajalela, Rosli Dobi and several
others.

During the 1920s and 1930s, many residents of Malaya had started to receive education, either from
the Middle East or local education. As a result, this educated group had appeared to fight in the
name of nationalism. They used media such as newspapers and magazines to spread their
ideology. There were also among them who had formed Associations such as the Kesatuan Melayu
Muda (KMM) and Kesatuan Melayu Singapura (KMS) which were aimed at driving away the
invaders and formed their own Government. When the people of this country were so eager to end
the invasion, they were jolted by the Japanese landing at the end of 1941 which brought Malaya to
another colonial era. Japan had occupied Malaya until 1945 before surrendering as a result of the
bombings of Hiroshima and Nagasaki. 

Japanese resignation has given space to the Communist Party of Malaya (PKM) to control Malaya.
PKM has launched attack on Malaya through violence, they had murder three European rubber farm
managers in Sungai Siput, Perak.Thus, in June 1948, Sir Edward Gent has declared emergency
over Malaya. PKM did not succeed Malaya and the British returned powerful. British Military
Administration or BMA is between the end World War II and establishment of the Malayan Union. On
1st April 1946, The British established the Malayan Union. However, this idea got a fight from the
Malays for abolition the royal institutions and the Malays privileges.
The emergence of Tunku Abdul Rahman had given a silver lining to the struggle of the Malayan
nationalists when his action of forming the Alliance Party had started to open the eyes of British to
allow the Malayans to govern their own country. The unity between the three major ethnic groups
namely Malays, Chinese and Indians led to the London Agreement that was signed on 8 February
1956 and had given signs that Malaya will achieve independence on 31 August 1957. Upon
returning Tunku Abdul Rahman Al-haj from London, Tunku has made a declaration independence of
Malaya in Padang Bandar Hilir, Melaka on 20 February 1956. On 27 May 1961, Tunku Abdul
Rahman Putra Alhaj has suggested the merger of five colonies namely the Malaya, Singapore,
Sabah, Sarawak and Brunei to form a new country. 

On 9 July 1963, representatives of the British government, Malaya, Sabah, Sarawak and Singapore
except Brunei caused the matter can not be avoided. The desire for forming a state called
MALAYSIA is achieved on 16 September 1963

Malaysia, country of Southeast Asia, lying just north of the Equator, that is

composed of two noncontiguous regions: Peninsular Malaysia (Semenanjung
Malaysia), also called West Malaysia (Malaysia Barat), which is on the Malay
Peninsula, and East Malaysia (Malaysia Timur), which is on the island
of Borneo. The Malaysian capital, Kuala Lumpur, lies in the western part of
the peninsula, about 25 miles (40 km) from the coast; the administrative
centre, Putrajaya, is located about 16 miles (25 km) south of the capital.

PHILIPPINES
The Philippines is the only country in Southeast Asia that was subjected to
Western colonization before it had the opportunity to develop either a
centralized government ruling over a large territory or a dominant culture. In
ancient times the inhabitants of the Philippines were a diverse agglomeration
of peoples who arrived in various waves of immigration from the Asian
mainland and who maintained little contact with each other. Contact with
Chinese traders was recorded in 982, and some cultural influences from South
Asia, such as a Sanskrit-based writing system, were carried to the islands by
the Indonesian empires of Srivijaya (7th–13th century) and Majapahit (13th–
16th century); but in comparison with other parts of the region, the influence
of both China and India on the Philippines was of little importance. The
peoples of the Philippine archipelago, unlike most of the other peoples of
Southeast Asia, never adopted Hinduism or Buddhism.
The 19th century
By the late 18th century, political and economic changes in Europe were finally
beginning to affect Spain and, thus, the Philippines. Important as a stimulus
to trade was the gradual elimination of the monopoly enjoyed by the galleon
to Acapulco. The last galleon arrived in Manila in 1815, and by the mid-1830s Manila
was open to foreign merchants almost without restriction. The demand for Philippine
sugar and abaca (hemp) grew apace, and the volume of exports to Europe expanded
even further after the completion of the Suez Canal in 1869.

The growth of commercial agriculture resulted in the appearance of a new class.

Alongside the landholdings of the church and the rice estates of the pre-Spanish nobility
there arose haciendas of coffee, hemp, and sugar, often the property of enterprising
Chinese-Filipino mestizos. Some of the families that gained prominence in the 19th
century have continued to play an important role in Philippine economics and politics.

Philippines, island country of Southeast Asia in the western Pacific Ocean. It

is an archipelago consisting of more than 7,000 islands and islets lying about
500 miles (800 km) off the coast of Vietnam. Manila is the capital, but
nearby Quezon City is the country’s most-populous city. Both are part of the
National Capital Region (Metro Manila), located on Luzon, the largest island.
The second largest island of the Philippines is Mindanao, in the southeast.

SINGAPORE
The history of the Republic of Singapore began when Singapore was expelled from Malaysia and
became an independent republic on 9 August 1965.[1] After the separation, the fledgling nation had to
become self-sufficient, and faced problems including mass unemployment, housing shortages and
lack of land and natural resources such as petroleum. During Lee Kuan Yew's term as prime
minister from 1959 to 1990, his administration curbed unemployment, raised the standard of
living and implemented a large-scale public housing programme. The
country's economic infrastructure was developed, racial tension was eliminated and an independent
national defence system was created. Singapore evolved from a dying nation to first world
status towards the end of the 20th century.[2]
In the first few years of the 21st century, Singapore went through some of its most serious postwar
crises, including the SARS outbreak in 2003 and the threat of terrorism. In December 2001, a plot to
bomb embassies and other infrastructure in Singapore was uncovered and 15 members of
the Jemaah Islamiyah were arrested under the Internal Security Act. Major counter-terrorism
measures were put in place to detect and prevent potential terrorism acts and to minimize damages
should they occur. Meanwhile, the economy was affected marginally during the crisis, and in 2003,
the average monthly household income was SGD$4,870.
In 2004, Lee Hsien Loong, the eldest son of Lee Kuan Yew, became the third prime minister of
Singapore. A number of national policy changes have been proposed and carried out since then.
One of these changes was the reduction of National Service training requirements from two and a
half years to two during 2005. The government also introduced a "Cutting Red Tape" program, which
allows citizens to share their views on law, punishment, social and world issues.
The general election of 2006 has been considered by analysts to be a landmark election in the
history of Singapore, because of the heavy use of the internet and blogging that covered the
election, which escaped government regulation. Just before the election, on 1 May 2006, the
government issued a cash bonus, called the "progress package" to all adult citizens,
worth SGD $2.6 billion. The PAP returned to power in the election winning 82 out of 84 seats, and
66% of the votes. During the election campaign period, there were large turnouts at many opposition
rallies, with Malaysian newspaper The Star estimating that over ten thousand people attended one
rally held on 30 April 2006.
Singapore's bilateral post-independence relationship with Malaysia is complex and rocky at times.
Despite their differences, Malaysia remains an important, albeit partial, economic hinterland and a
regional ally, especially due to both their memberships in ASEAN. This importance becomes
especially apparent when considering that much of Singapore's water supply comes from Malaysia.
Both countries have been known to chide or even issue threats to the other due to differences in
paths taken after independence, but fortunately this has never become serious enough to develop
into embargo or hostility.
There are increasing reforms in the education system. Primary education was made compulsory in
2003. This style of educational policy was still extremely competitive, and favoured those that did
well initially, and tended to ignore the suffering students, in the process of streaming. This remains a
controversial issue even today. It was theme for the successful local film I Not Stupid which also
addresses the culture of competition induced by the post-independence education policy. Although
the education policy has evolved over the years to address such concerns, the streaming issue is
still prominent.
The 2013 Population White Paper was officially released by the government proposing a future
national population of 6.9 million due to growing concerns of rising life expectancy, declining birth
rates and ageing population foreseen of Singapore in 2030. [9] This came after the formal launch of
two Integrated Resorts, which also became the most profitable in the world in the same year.
Singapore, city, capital of the Republic of Singapore. It occupies the
southern part of Singapore Island. Its strategic position on the strait between
the Indian Ocean and South China Sea, complemented by its deepwater
harbour, has made it the largest port in Southeast Asia and one of the world’s
greatest commercial centres. The city, once a distinct entity, so came to
dominate the island that the Republic of Singapore essentially became a city-
state.

THAILAND
The Kingdom of Thailand is one of the few developing countries never to have been colonized.
It is located centrally in Southeast Asia with both extensive Pacific coasts (Gulf of Thailand) and
Indian Ocean (Andaman Sea). It shares borders with Myanmar (Burma) to the west and
northwest, the Lao PDR to the north and northeast, Cambodia to the south and east, and
Malaysia to the south. Thailand occupies an area of 514,000 square kilometers (319,194 square
miles). Its population is 61,230,874 (estimated in July 2000), making it the sixteenth largest
country in the world.
Though not as culturally diverse as other Southeast Asian countries, such as Myanmar, Laos, or
Indonesia, Thailand has, nevertheless, considerable ethnic diversity. The three major groups are
ethnic Thais (roughly 45 percent), Thais of Lao-Isan (northeast) ethnicity (roughly 30 percent),
and Sino-Thais (roughly 14 percent) who are generally well-assimilated. Among the other three
major ethnic groups are diverse hill peoples in the north and west such as the Hmong and Karen,
Islamic Malay peoples in the southernmost four provinces of Thailand, and Khmer-Thais in the
lower part of the northeast.

Prior to 1939 and from 1945-1949 the country was known as Siam. In 1949, the name reverted to
Thailand, literally meaning land of the free. The country's origin dates back to 1238 when the
Sukhothai Kingdom was established (1238-1378). The Sukhotahai Kingdom was followed by the
Ayuthaya Kingdom (1350-1767), Thonburi Kingdom (1768-1781), and the current Chakri
Dynasty-Bangkok Period (1782 to present). The country has had a literate culture from its
beginning. Its phonetic alphabet was invented by King Ramkhamhaeng in 1283 and was derived
originally from a form of the Brahmi script of Southern Indian called Grantha (Pongsak 2001).

Traditionally, education took place in Buddhist temples (wat). Teachers were Buddhist priests
who were considered the learned members of the community and they provided both moral
training and the basics of a literary culture. This system prevailed from the thirteenth to the
nineteenth centuries. A lasting influence of this system can be seen today in what are known as
"temple schools" located on the grounds of Buddhist monasteries (approximately 20 percent).

In the late nineteenth century under the visionary leadership of its modernizing monarch, King
Chulalongkorn (King Rama V) (1868-1910), Siam established a modern secular system of
education. The introduction of a modern printing press by Western missionaries in the mid-1800s
made it possible to print books in the Thai language, an extremely important development for the
future of Thai education. In 1858, King Mongkut (Rama IV) had the first government printing
press established.

Thailand, country located in the centre of mainland Southeast Asia. Located

wholly within the tropics, Thailand encompasses diverse ecosystems,
including the hilly forested areas of the northern frontier, the fertile rice fields
of the central plains, the broad plateau of the northeast, and the rugged coasts
along the narrow southern peninsula.

BRUNEI DARUSSALAM

Although its early history is obscure, Brunei was known to be trading with and
paying tribute to China in the 6th century CE. It then came under Hindu
influence for a time through allegiance to the Majapahit empire, based in Java.
When the ships of the expedition of Ferdinand Magellan anchored off Brunei
in 1521, the fifth sultan, the great Bolkiah, controlled practically the whole
of Borneo, the Sulu Archipelago, and neighbouring islands. Toward the end of
the 16th century, however, the territory was torn by internal strife. Brunei’s
power subsequently declined through the 19th century, notably with the
cession of Sarawak in northwestern Borneo to the English adventurer James
(later Sir James) Brooke in 1841, the expansion of Sarawak by additional
grants to Brooke, the cession to Great Britain of the island of Labuan in Brunei
Bay, and the final loss of what is now Sabah, East Malaysia, in northeastern
Borneo.

Brunei became a British protectorate in 1888, and in 1906 administration was

vested in a British resident, whose advice the sultan was bound to accept.
Despite the presence of a foreign administration, Brunei’s significance began
to revive with the start of petroleum production in 1929. In 1941–45,
during World War II, Brunei was occupied by the Japanese. The British
zreturned after the war, and negotiations began for the eventual independence
of Brunei.

The first step in this process occurred in 1959, when self-government was
achieved and the British resident was replaced by a high
commissioner. Britain remained responsible for defense and foreign policy.
Brunei adopted a written constitution, and in 1962 a partly elected Legislative
Council with limited authority was installed. The conversion to a
representative government was interrupted later that year by a revolt, which
was suppressed with the help of British forces; the sultan then called a state of
emergency and suspended most provisions of the constitution. New elections
were held in 1965, but appointed members still retained their majority in the
council.

At independence in 1984, Brunei’s relations with neighbouring Malaysia were

strained over boundary and territorial disputes in Sarawak. Ties between the
two countries gradually improved, as most of the border issues were resolved,
but Brunei still claimed the Limbang region of Sarawak between the two
portions of Brunei. In 2009 an agreement was reached by which Brunei would
drop its claim on Limbang and Malaysia would forgo its claim to oil-rich areas
in the South China Sea that the two countries had contested. However, the two
countries would jointly exploit any reserves found there.

Brunei, independent Islamic sultanate on the northern coast of the island

of Borneo in Southeast Asia. It is bounded to the north by the South China
Sea and on all other sides by the East Malaysian state of Sarawak, which also
divides the state into two disconnected segments of unequal size. The western
segment is the larger of the two and contains the capital city of Bandar Seri
Begawan. Brunei achieved independence in 1984, having been a
British protectorate since 1888. It is a member of
the Commonwealth and ASEAN (Association of Southeast Asian Nations).

VIETNAM

Vietnam has a history of tribes uniting to form strong dynasties. The first dynasty that
many consider to be the start of the Vietnamese state was the Hong Bang Dynasty
which was ruled by the legendary Hung kings. In 111 BC, the Han Dynasty from China
absorbed Vietnam into their empire. Vietnam would remain a part of the Chinese empire
for over 1000 years. It was in 938 AD that Ngo Quyen defeated the Chinese and gained
independence for Vietnam. Vietnam was then ruled by a succession of dynasties
including the Ly, Tran, and the Le dynasty. Under the Le dynasty the kingdom of
Vietnam reached its peak, expanding to the south and conquering a portion of the
Khmer Empire

In 1858 the French came to Vietnam. In 1893 the French incorporated Vietnam into
French Indochina. France continued to rule until it was defeated by communist forces
led by Ho Chi Minh in 1954. The country became divided into Communist North
Vietnam and the anti-Communist South. The Vietnam War raged for years between the
two countries with the US supporting the South and communist countries supporting the
north. The North eventually won uniting the country under communist rule in 1975.

Vietnam is able to control COVID-19 outbreak rapidly since the vaccination program has not
started and even though it is one of the slowest country that could get vaccinated. Otherwise,
there is categorical and strict public health measures, so they could control the number of
infected people efficiently. The number of infected and fatalities in Vietnam is very small
comparing to other Asian countries and Vietnam could resume to their normal economic
activities quickly.

Vietnam has a policy to support the manufacturing industry especially electronic products and
medical products according to the needs of consumers during the epidemic. Besides, the
government tries to push an environment that is conducive to foreign investment business and
this includes low labor costs in wages, electricity, and tax rates for some industries. In addition,
many bilateral and multilateral free trade agreements signed by Vietnam are causing many
multinational companies come to Vietnam and build production bases and plan to expand
business within Vietnam this year.
Apart from manufacturing sector, Vietnam is also concerned with economic infrastructure in
order to become more of a service business by accelerating and supporting startups with the goal
of being the economic and technological center of ASEAN. All these things require quality
population that makes the government do not forget to focus on the development of education
and the students compete for prestigious institutions and study additional English tutoring to
study abroad. In terms of logistics systems, the government focuses on economic infrastructure
development especially in special economic zones to facilitate transportation and increase
operational efficiency. Moreover, Vietnam revives the construction of a special railway between
cities resulting in faster domestic and international shipping and it has reduced costs.

Since Vietnam has large number of populations by most young generation is in labor force, the
population growth rate is estimated to be the highest growth among ASEAN countries in the next
5-6 years and it makes the domestic market a high potential for highly growing. Besides, it
boosts rapid growth of the middle class in Vietnam which means better quality of life and has
potential to spend money more. The development of products or services to meet the needs of the
people is also increasing. Recently, more than half of them are purchasing products in the
consumer group and most likely will switch to spending on unnecessary or other luxury goods.

Although Vietnam still has many aspects in need of improvement, such as the shortage of highly
skilled workers, infrastructure and less state enterprises, from the mentioned success factors,
Vietnam is definitely the one to focus and it is a country that has the potential to grow and
develop. It is interesting and good opportunity to accumulate funds in Principal Vietnam Equity
Fund (PRINCIPAL VNEQ) that has policy about investing in stocks listed on the Vietnam Stock
Exchange with good growth potential in the future. The fund is managed by a Thai investment
management team and a Vietnamese analyst.

Vietnam is a long, narrow nation shaped like the letter s. It is in Southeast Asia on the
eastern edge of the peninsula known as Indochina. Its neighbors include China to
the north and Laos and Cambodia to the west. The South China Sea lies to the east
and south.