Trade and industry Hoa people

1 trade , industry

1.1 history , french colonial rule (3rd century bc–1945)
1.2 south vietnamese rule (1945–1975)
1.3 reunification , doi moi (1975–present)

trade , industry


ho chi minh city continues vietnam s major financial district , business networking hub hoa businessmen. city teeming thousands of prospering chinese businesses.

like of southeast asia, hoa dominate vietnamese commerce , industry @ every level of society. before 1975, entrepreneurial savvy chinese had literally taken on vietnam s entire economy. economic power of hoa far greater of proportion in population in addition chinese being socioeconomically successful hundreds of years indigenous host kinh population. hoa chinese wield tremendous economic clout on indigenous kinh vietnamese majority counterparts , play critical role in maintaining country s economic vitality , prosperity before having property confiscated vietnamese communists after 1975. ethnic chinese controlled 75 percent of economic activity in south vietnam in 1975, including 100 percent of domestic wholesale trade, 80 percent of industry, 70 percent of foreign trade , presided on half country s retail trade. 117 of 670 leading vietnamese business families of ethnic chinese descent. utilizing confucian paradigm of personal networks, hoa have dominated several types of businesses such financial services, food, information technology, chemicals, electronic , electrical equipment, machinery, fabricated metals, wholesale trade, transportation equipment, , other miscellaneous services. constituting mere 1 percent of vietnam s population, ethnic chinese controlled estimated 90 percent of non-european private capital in mid-1960s , dominated vietnam s entire retail trade, financial services, manufacturing, , transportation sectors, , aspects of country s rice economy. although there numerous wealthy vietnamese in commercial class, disproportionate amount economic power held hoa minority led resentment indigenous vietnamese kinh majority.

early history , french colonial rule (3rd century bc–1945)

chinese economic dominance in vietnam dates 208 b.c., when renegade qin chinese general zhao tuo defeated dương vương, king of Âu lạc in north vietnam , conquered Âu lạc kingdom, ancient vietnamese state situated in northern mountains of modern vietnam populated ancient lạc việt , Âu việt. annexed Âu lạc qin empire following year , declared himself emperor of nam viet. century later, powerful han dynasty annexed nanyue han empire , ruled province next several hundred years. sinification of nanyue brought combination of han imperial military power, regular settlement , influx of han chinese refugees, officers , garrisons, merchants, scholars, bureaucrats, fugitives, , prisoners of war. end of 17th century, distinct chinese community, known hoa, formed within vietnamese society. modern chinese settlement , immigration in vietnam came conducive opportunities trade , business. ethnic chinese businessmen began visit hội 16th century onward , traded black incense, silk, alum , chinese medicinal products local vietnamese. dutch, portuguese , french merchants visited hội in 17th century brought high quality brass utensils attracted attention of chinese. in turn, other goods such porcelain, silver bars , various metals traded. around time, local chinese community began establish own trading , social associations, latter of referred bang in vietnamese protect own economic interests. bang provided various welfare services new chinese immigrants, including financial services such collection of taxes. more immigrants poured in 19th century, bang served meeting points chinese community leaders band pool seed capital , establish own businesses. in 1906, chinese , french businesspeople had total capital output of 222 million francs, compared 2 million francs local kinh vietnamese.

the hoa notoriously enterprising entrepreneurs traded , manufactured myriad of , services of value ranging fine chinese silk black incense. monopolized gold export trade entirely in chinese hands in addition chinese domination of local trade in paper, tea, pepper, arms, sulphur, lead, , lead oxide. economic clout held hoa coupled repeated attempts china conquer , dominate vietnam inflamed anti-chinese hostility, bitterness, , resentment indigenous vietnamese kinh majority. hostility against ethnic chinese minority resulted in violence, including infamous 1782 massacre of 2000 hoa in cholon, saigon s chinatown. time french arrived in mid-18th century, hoa held controlled , dominated indigenous vietnamese majority in trade, mining, , every urban market sector in addition prospering under colonial laissez faire market policies enshrined french colonialists. in addition, hoa served intermediaries operating agents french own. hoa collaborated french , other european capitalists in tapping natural riches , exploiting native kinh vietnamese via laissez faire economic system become wealthy. under french rule, collection of paddy in mekong delta under chinese hands resold french companies export. industrial commodities imported france french companies in vietnam retailed rural population in south hoa merchants, of them holding exclusive distribution rights. 1930s, gaps between large-scale manufacturing, commercial, , financial enterprises held french filled smaller businesses controlled chinese. favorable economic policies attracted rapid influx of chinese immigrants seeking financial destiny through business success until mid-twentieth century. between 1925 1933, 600,000 han chinese immigrants settled in vietnam. hoa merchants delved rice, liquor, opium , spice trade, set plantations in rural hinterlands of mekong delta , sold products in cholon. in north, hoa rice farmers, fishermen, , coal miners, except residing in cities , provincial towns. french regularly worked chinese businessmen in agriculture , heavy industry sectors, , latter served middlemen liaise between , french in domestic trade.

south vietnamese rule (1945–1975)

in 1970, estimated while hoa made 5.3 percent of total population, reputedly controlled 70 80 percent of entire commerce sector of vietnam. chinese businesses controlled of commerce in saigon in south vietnam. before fall of saigon, ethnic chinese controlled 40.9% of small scale enterprises, 100 percent of wholesale trade in south vietnam, transitioning smaller-scale retail firms larger wholesale enterprises. @ end of 1974, hoa controlled more 80 percent of food, textile, chemical, metallurgy, engineering, , electrical industries, 100 percent of wholesale trade, more 50 percent of retail trade, , 90 percent of export-import trade. dominance on economy enabled hoa manipulate prices of rice , other scarce goods. during vietnam war, wealth of hoa increased dramatically , intensified seized lucrative business opportunities came arrival of american troops, needed trade , services network serve military needs. south vietnamese government gradually deregulated economy, adopting relatively liberal market policies caused local hoa exploit local business opportunities extending economic dominance light industry. throughout war, hoa took advantage of u.s. aid , expanded not trade , services networks operations in other domains. ethnic chinese controlled keys sectors of south vietnam s economy such trade, industry, banking, communications, , transportation. hoa controlled two-thirds of amount of cash in circulation, 80 percent of processing industry, 80 percent of fixed assets in manufacturing, 100 percent of wholesale trade, 50 percent of retail trade, , 90 percent of export , import trade. hoa monopolized 100 percent of grain trade , obtained 80 percent of credits south vietnamese banks, owning 42 out of 60 companies turnover of more 1 billion piasters including major banks, , accounted two-thirds of total annual investments inn south.

in vietnamese business circles, hoa dubbed crownless kings , rice kings , gasoline kings , or scrap-iron kings . highly publicized profiles of wealthy chinese entrepreneurs attracted great public interest , used illustrate community s strong economic clout. huge materials supply system ensured maximum support ethnic chinese entrepreneurs whatever goods , services provided clients. market allegedly calibrated ensure maximum profits , manipulated prices through import-export , transport systems. chinese act act agents expatriate mainland , overseas chinese investors outside of vietnam act underlings , providers of economic intelligence. under saigon administration, rapid influx of chinese expatriate entrepreneurs macau, hong kong, , taiwan came south vietnam business , investment activities. hoa compradore bourgeoisie in south vietnam had economic , political backing of wealthy expatriate chinese taiwan , hong kong , overseas chinese capitalists in united states , other countries in southeast asia. hoa entrepreneurs in south vietnam became more financially prosperous, pooled large amounts of seed capital , started joint business ventures expatriate mainland , overseas chinese business moguls , investors on world. in addition, prominent hoa compradore bourgeoisie colluding , mingling saigon government officials , south vietnamese army elite attain greater wealth. notorious of south vietnam s hoa compradore bourgeoisie ly long than, reportedly held large assets in 18 major commercial , industrial manufacturing enterprises (vinatexco , vinafilco textile factories, vinatefinco dye-works, vicasa steel factory, nakydaco edible oil factory, rang dong sea transport company, real estate company, plush hotel, insurance provider, , many restaurants) , sixteen banks including bank of china, agricultural bank, , agriculture industry commerce bank. foreign investors , visitors doing business in cholon recall seeing plethora of import-export shipping giants, banks, modern high-rise buildings, plush hotels , nightclubs, , restaurants owned hoa businessmen. other hoa compradore bourgeoisie capitalists include hoan kim quy, native of hanoi owned prominent shipping firm , made fortune barbed wire manufacturing, operation of large textile , appliance import company , gold mining , trading firm. director of vitako company , major shareholder in several banks.

the control , regulation of markets 1 of sensitive , persistent problems faced revolutionary government following beginning of north–south integration in 1975. government, in doctrinaire efforts nationalize commercial, market-oriented southern economy, faced several paradoxes. first need both cultivate , control commercial activity ethnic chinese in south, in ho chi minh city. chinese businesses controlled of commerce in ho chi minh city , south generally. following break china in 1978, vietnamese leaders evidently feared potential espionage activities within chinese commercial community. on 1 hand, chinese-owned concerns controlled trade in number of commodities , services, such pharmaceuticals, fertilizer distribution, grain milling, , foreign-currency exchange, supposed state monopolies. on other hand, chinese merchants provided excellent access markets vietnamese exports through hong kong , singapore. access became increasingly important in 1980s way of circumventing boycott on trade vietnam imposed number of asian , western nations.

as hoa inclined entrepreneurs, have dominated several types of businesses such selling rice, crewed junk, rice transportation, , ship building during arrival vietnam. through enterprise, organization, , cooperation many chinese became part of prosperous, urban middle class controlled retail trade. chinese shops filled every town , sea route rice selling , transportation remained 1 of profitable businesses in nation. in addition, hoa became actively involved in commerce, particularly in area of saigon, chinese worked vendors , sold array of products industrious enterprising ethnic group. many work butchers , tailors, , venture confectionery. many chinese worked money lenders, bankers, , money changers. products such tea, porcelain, pharmaceuticals , medicine, furniture , cabinet-work shipped vietnam china. government officials said ethnic chinese in cholon active in municipal interests , vietnamese communist party. main interest enterprise. chinese feel secure in business social , cultural life. 20 percent of 6,000 private companies , 150,000 individual small businesses in city run chinese. chinese accounted more 30 percent of ho chi minh city s business output due better equipment used businesses.

in south, hoa controlled more 90 percent of non-european capital, 80 percent of food, textile, chemical, metallurgy, engineering, , electrical industries, 100 percent of wholesale trade, more 50 percent of retail trade, , 90 percent of import-export trade. economic dominance presided accusations vietnamese kinh majority hoa minority manipulated prices of rice , other scarce commodities. noted 1983 more 60 percent of southern vietnam s bourgeoisie of chinese extraction. controlled entire rice paddy market , obtained 80 percent of bank loans in south. hoa owned 42 of 60 corporations having large annual turnover of more 1 million dong , investments accounted two-thirds of total investment in south vietnam.

reunification , doi moi (1975–present)

following vietnam s reunification in 1976, socialist , revolutionary vietnamese government began using hoa scapegoat economic woes. government referred enterprising chinese bourgeois , perpetrators of world capitalism. brutal draconian policies against chinese involved employing techniques hitler used inflame hatred against jews reported u.s. news , world report s ray wallace in 1979 led many hoa being persecuted fleeing country or death laboring in vietnam s so-called new economic zones . though vietnam still technically socialist economy in many respects, vietnamese government s post-1988 shift free market liberalization has led astounding resurgence of chinese commercial dominance in country s urban areas. hoa have achieved prominence in light industry, import-export trade, shopping malls, , private banking sector.