THE ECONOMIC SITUATION IN SOUTH VIETNAM (WEEKLY)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000200010048-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 20, 2016
• Document Release Date: August 28, 2006
• Sequence Number: 48
• Publication Date: February 3, 1969
• Content Type: IR

,crt 106:1F,
Apped For Release 2007/03/09: CIA-RDP82S00205R0002%Iffl&0
DIRECTORATE OF
INTELLIGENCE
Intelligence Report
The Economic Situation in South Vietnam
(Weekly)
State Dept. review completed
USAID review completed
Secret
118
3 February 1969
No, 0479/69
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Secret
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
[TS Code, as amended. Its transmission or revelation of its contents to or
by an unauthorized person is prohibited by law.
GROUP 1
UDED FROM ACTOMATIC
OOWNORADINO AND
DECLA8SIPXCAT7ON
Secret
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CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
The Economic Situation. in South Vietnam
Summary
Minister of Economy Ho has charged that collu-
sion between importers and stevedore companies is
causing congestion at the Saigon port. Delays in
unloading ships apparently are largely responsible
for a sharp rise in the price of cloth since early
December.
Sales of fertilizer increased.-considerably dur-
ing 1968 when imports and distribution were handled
entirely by the private sector.
After declining for two weeks retail prices in
Saigon rose three percent during the week ending 20
January. Free market dollar and gold prices were
down slightly.
ANNEX: Weekly Retail Prices in Saigon
(table)
Monthly and Weekly Currency and
Gold Prices (graph)
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Port Congestion
1. According to Saigon press reports, a slow-
down by two stevedore companies is.caus.ing congestion
at the port of Saigon. This congestion, however, is
minor compared with that which existed during most of
1966 and early 1967. On 17 January there reportedly
were five ships waiting at Vung Tau,. nine ships at the
Saigon docks, and 12 ships in the Saigon River which
had to be unloaded onto barges. A senior port official
told the Saigon Post that the3,000 dockers employed
by two French-operated stevedore companies have been
working "inefficiently," making it difficult for un-
loaded goods to be sorted out and picked up by im-
porters. He also alleged that many businessmen do not
have enough money for the customs duties which must be
paid before goods can be removed from the port ware-
houses. Minister of Economy Ho, however, has charged
that businessmen have been conniving with the steve-
dore firms to cause an "artificial bottleneck" in the
port so that they would have a pretext for raising
prices of imported goods. According to Ho, the ships
being held at Vung Tau are loaded mostly with textiles
and other goods in great demand for Tet. None of the
charges has been proven, but it is true that the re-
tail price of cloth in Saigon has increased 73 percent
since early December compared with an increase of 13
percent during the corresponding pre-Tet period last
year. The delay in unloading ships is the only rea-
sonable explanation for a price increase of this
magnitude.
2. Imports and distribution of fertilizer in-
creased in 1968 when these activities-were handled
entirely by the private sector. In addition, fertil-
izer prices were relatively stable throughout the
year. According to data reported by USAID, 215,700
metric tons of fertilizer were distributed during the
ten-month period from March through December 1968, or
slightly more than was distributed during the pre-
ceding 12 months. In general, prices for most types
of fertilizer increased less than ten percent during
the year, although transportation difficulties may
have caused greater increases in some areas of the
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country. No data are available. to show- the end use
of the fertilizer, but most. probably-was used on
rice, especially the new "miracle" strains, and
vegetables.
3. In early 1968 USAID and the Vietnamese
Government agreed that fertilizer wouldbe imported
by commercial importers rather than by-the government's
Agricultural Development Bank (ADB).. In. addition, it
was agreed that prices would be set by free competi-
tion among distributors, whereas they formerly were
set by the government. In April 1968. four private
organizations, which combined. to form. the Fertilizer
Distribution Center (FDC), purchased the existing
stock (115,000 metric tons) of the ADB and later im-
ported an additional 70,000 tons. The FDC, which
acts as a national fertilizer supply pool, is com-
posed of three farmers' organizations. and ,a group of
60 private wholesalers. The private wholesalers pro-
vide the experience in import procedures, and the
farmers' associations provide a sales network through
their local organizations.
4. After declining for two weeks Saigon retail
prices increased three percent during the week ending
20 January. Food prices rose three percent as the re-
sult of higher prices for chicken, sugar, and most
vegetables. Prices of high quality domestic rice also
increased slightly., but pricesof lower quality and
imported rice did not change. Nonfood prices were un-
changed except for those of charcoal and calico which
continued to increase. According to the embassy, the
supply of charcoal in Saigon has been cut by labor and
transportation problems in the border provinces where
much of it is produced. The rising price of calico
partly reflects the heavy demand for new clothing
which almost everyone makes for Tet.- The USAID price
index for imported commodities continued steady for
the third consecutive week. (A table of weekly re-
tail prices in Saigon is included in the Annex.)
Currency and Gold
5. Free market dollar and gold. prices declined
slightly during the week ending 20 January, while the
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price of MPC (scrip) was unchanged at 148 piasters
per dollar. The price of a dollar's. worth of gold
leaf declined two piasters to 287 piasters, and the
rate for dollars fell three piasters to 195 piasters
per dollar. Since September 1968 the price of dollars
has not changed significantly, ranging between 190 and
205 piasters per dollar. (A graph on monthly and
weekly currency and gold prices is included in the
Annex.)
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Weekly Retail Prices in Saigon/
3 Jan
1967
2 Jan
1968
30 Dec
1968
6 Jan
1969
13 Jan
1969
20 Jan
1969
Index for All Items
225
308
408
00
394
405
Index for Food Items
242
4
443
434
448
Of Which:
(In Piasters)
Rice-Soc Nau
(100 kg.)
1,700
2,500
3,100
3,100
3,200
3,250
Pork Bellies
(1 kg.)
130
220
280
260
230
220
Fish-Ca Tre
(1 kg.)
150
230
320
310
300
340
Nuoc Mari (jar)
90
150
220
220
220
220
iL
L4-1-
315
1
21
25
Of Which:
(In Piasters)
Firewood (cu. meter)
560
600
780
800
800
800
Cigarettes (pack)
14
14
22
22
22
22
White Calico (meter)
33
52
80
82
85
90
Kerosene (liter)
10.5
9
10
10
10
10
a. Data arefrom USAID sources. For indexes 1 Jan 1965 = 100.
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I
PIASTERS PER US DOLLAR
196 r t966 '967 968 ':" 19
App'
GOAD B i, sold I. .f worth $35
U~10 t
C.S 10 MPC MIt ry P ym nt
20 JA ".
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