Vietnam's landscape and economy contrast strongly with those of many Asian Pacific countries.

Its 'rush hour', for instance, is conducted mainly in two- or three-wheeled vehicles, a daily event that has all but disappeared from other countries in Asia Pacific.

Vietnam is one of the least developed Asian Pacific countries. Many aspects of daily life have been held back by decades of war of one kind or another. Many branches of economic activity, including transport, industry and agriculture, have been almost frozen in time.

Once a French colony, it fought to gain independence during the 1950s. When the northern half became communist, with the southern half capitalist, Western countries were alarmed. The USA fought for South Vietnam in the 1960s and 1970s, but left with the North victorious.

Extensive bombing, use of defoliants and laying of mines imposed terrible damage on huge areas of countryside.

The efficient Vietnamese army continued to be involved during the late 1970s and 1980s in conflicts in neighbouring countries of Indo-China.

For 40 years from the late 1940s, war directly and indirectly replaced economic activity as the main preoccupation of the people of Vietnam.

Economic Structure and Levels of Development

In LEDCs (Less Economically Developed Countries) it is common to find low levels of wealth where the economy depends heavily on agriculture and other primary activities. Vietnam illustrates this dramatically. Early growth is often via other primary sectors such as mining and then manufacturing. In the last two decades, however, many LEDCs have looked at the growth of world tourism and jumped straight to service activities as the route to growth.

At 90%, Vietnam still has one of the highest proportions of rural population in Asia Pacific, and indeed in the world.

Three-quarters of the farm economy is subsistence.

Vietnam has many natural resources. Along all the 2000 km coastline are rich fishing grounds. The land contains huge quantities of minerals like coal and oil, and, thanks to fertile soils and a favourable climate, the potential for agriculture is considerable.

With these opportunities in mind, the government has a development programme to raise the country from the subsistence level. The programme targets agriculture, manufacturing and minerals.

Tourism in LEDCs

In making tourism its first priority (and Nha Trang is right in the middle of this development) Vietnam will face fierce competition: there are nearby countries such as Thailand and Malaysia with long experience of tourism.

The potential in Vietnam is massive. The coastline is 2000 km long and so far there are only two hotels of an international standard on it.

As yet, the industry employs very few people, but the effects are already seeping into everyday life in Nha Trang.

Tourism has direct and indirect effects on the economy and landscape.

Polluting industries are barred from setting up anywhere near Nha Trang's attractive stretch of coastline, and the town has been declared a 'tourism development zone'. The new promise of work has magnetised the town's informal economy.

For all those in the informal economy who make a living from tourism, the money they earn is unpredictable. Nha Trang's climate is hot and sunny all year round: there's no sign yet of a 'tourist season'. Trading goes in fits and starts and always entails a lot of hanging around and waiting for something to happen.

In late 1997, Nha Trang's otherwise uncrowded beach front received its biggest boost ever: the second of Vietnam's international-style beach resorts opened here.

The up-market design and the carefully planned environment are crucial for any resort development that wants to grab the wealthy end of Asia Pacific's tourist business.

The resort is a joint venture between the Vietnamese government and a British company working out of Hong Kong. The strategy has been to go for a local Vietnamese style wherever possible, right down to details such as how to get the luggage to the rooms.

Compared with other forms of economic development, tourism is not very capital-intensive. Whereas manufacturing needs high levels of investment, tourism is reckoned to be quick and cheap. It also creates many jobs: the resort has generated 150.

The effects go beyond the resort itself. Tourism is having a strong multiplier effect on the local economy.

This trickle-down influence travels a long way beyond Nha Trang's urban area into the rural hinterland.

As more fish are being caught, craftsmen have more nets to make - at least for now, before they are replaced by the factories that will inevitably come.

Farmers are taking land out of rice cultivation and switching to more profitable vegetables destined for tourist consumption.

Thi Tuong Vy is the food buyer for the new resort. In its first six months, the 120 rooms have been full three times - no mean feat in the cut-throat hotel business. This is the reason behind Thi Tuong's daily trips to the market, getting to know the people who are going to give the best deals.