THE ECONOMIC SITUATION IN SOUTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000200010036-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 19, 2016
• Document Release Date: July 20, 2005
• Sequence Number: 36
• Publication Date: May 5, 1969
• Content Type: IR

25X1
Approved For Release 2005/08/08: CIA-RDP82S00205R
DIRECTORATE OF
INTELLIGENCE
Intelligence Report
The Economic Situation in South Vietnam
(Weekly)
Secret
120
5 May 1969
No. 0492/69
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Secret
25X1
WARNING
This document contains information affecting the national defense of the
United States, within the meaning of Title 18, sections 793 and 794, of the
US Code, as amended. Its transmission or revelation of its contents to or
receipt by an unauthorized person is prohibited by law.
GROUP I
?>]CCtvnED FROM AUTOMATIC
DOWNGRADING AND
OFCLA89IFICATION
Secret
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 Approved For Release 2005/(R3 rADP82SO0205R00020001 Q03 -3
NUO,
The Economic Situation in South Vietnam
henceforth will be published biweekly. The next
issue of this publication will appear on 19 May 1969.
SECRET
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 Approved For Release 2005&6&Q'-RDP82SO0205R000200010~-3
Napo,
CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
The Economic Situation in South Vietnam
Summary
Despite a major setback caused by the 1968 Tet
offensive, South Vietnam's industrial sector achieved
a remarkable recovery. During the last six months
of 1968 output of most major products surpassed the
levels of the same period of 1967.
Data on retail prices in Saigon during the
week ending 21 April have not yet been received.
Free market dollar and gold prices were relatively
stable, while the rate for scrip returned to a more
normal level after a sharp decline the previous week.
ANNEX: Currency and Gold Prices (Graph)
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Principal Industrial Products
Unit of Measure
Jan-Jun
1967
Jan-Jun
1968
Percent
Change
Jul-Dec
1 7
Jul-Dec
1968
Percent
Change
Cotton Yarn
(000 m.t.)
3.4
1.7
- 50
4.0
2.7
- 32
Cotton Fabric
(mil mtrs)
21.4
8.2
- 62
21.7
20.3
- 6
Beer
(mil ltrs)
65.7
54.3
- 17
64.2
65.1
+ 1
Soft Drinks
(mil ltrs)
47.6
42.1
- 12
41.9
50.2
+ 20
Refined Sugar
(000 m.t.)
45.0
36.6
- 19
45.2
59.5
+ 32
Cigarettes
(000 m.t.)
4.8
5.0
+ 4
6.4
5.3
- 17
Cement
(000 m.t.)
88.8
39.7
- 55
91.9
105.0
+ 14
Paper
(000 m.t.)
9.6
7.3
- 24
11.2
12.3
+ 10
Electric Power
(mil kwh)
327.2
323.4
- 1
354.7
391.8
+ 10
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 Approve For Release 2005/OtkiI-RIU&' DP82SO0205R0002000100~36--3
1. South Vietnam's industry staged a remark-
able comeback during the last half of 1968 as re-
construction got under way and normal business
activity resumed. Production was down for the year
as a whole, but during the last six months, output
of most major products, except for textiles, sur-
passed the levels of the corresponding period of
1967. (See table.) The textile industry suffered
the most damage during the 1968 Tet offensive.
According to press reports, the two most heavily
damaged plants--Sicovina and Vinatexco--will not
return to pre-Tet 1968 levels of production and
employment until sometime later this year.
2. As shown in the table, which includes
products accounting for 75 percent of the weights
used in calculating the official production index,
production of most items during the first half of
1968 was below that of the corresponding period of
1967. Production also was below that of the first
half of 1966. More than 100 industrial firms were
either damaged or destroyed during the Tet offensive.
All industry suffered loss of production time during
the attacks and, subsequently, many firms lost man-
power to the draft. Moreover, the general decline
in business activity and consumer demand which
lasted for several months following the February
offensive also contributed to the decline in pro-
duction. Data showing the magnitude of the decline
for all industry are not yet available, but of the
major products, only soft drinks, sugar, and elec-
tric power recorded gains for the entire year.
Current and Gold
3. Free market dollar and gold prices were
relatively stable during the week ending 22 April.
The price of a dollar's worth of gold leaf was un-
changed at 272 piasters per dollar, and the price
of dollars increased only one piaster to 186
piasters per dollar. Gold and dollar prices cur-
rently are at their lowest levels since August 1968.
After a sharp decline the previous week, the rate
-2-
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for MPC (scrip) returned to a more normal level--
increasing 15 piasters to 145 piasters per dollar.
(A graph on monthly and weekly currency and gold
prices is included in the Annex.)
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Saigon Free Market Gold and Currency Prices
4{3Ei }
300
27t:
145
1965 ; X966; 1 iEi ` 1366 1969
US $10 MPC Military Payment Certificates (scrip)
Lj 111111 1111111
FFP YxA APR
1969 ' '
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