PAGE PAGE 1
000 B000000 03/31/99
000 C000000 927311
000 D000000 N
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PAGE PAGE 2
008 A000001 TEMPLETON ASSET MANAGEMENT LIMITED
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PAGE
PAGE 3
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PAGE
PAGE 4
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PAGE
PAGE 5
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PAGE
PAGE 6
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PAGE
PAGE 7
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PAGE
PAGE 8
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PAGE
PAGE 9
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PAGE
PAGE 10
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PAGE
PAGE 11
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PAGE 12
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PAGE
PAGE 13
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PAGE
PAGE 14
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PAGE 15
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PAGE 17
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SIGNATURE /s/JAMES R. BAIO
James R. Baio
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Vietnam and Southeast Asia Fund March 31, 1999 annual report
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000927311
<NAME> TEMPLETON VIETNAM AND SOUTHEAST ASIA FUND,INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 58441302
<INVESTMENTS-AT-VALUE> 41104583
<RECEIVABLES> 90578
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41195161
<PAYABLE-FOR-SECURITIES> 30833
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 549767
<TOTAL-LIABILITIES> 580600
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 85747756
<SHARES-COMMON-STOCK> 4681173
<SHARES-COMMON-PRIOR> 4681173
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (27536687)
<ACCUM-APPREC-OR-DEPREC> (17596508)
<NET-ASSETS> 40614561
<DIVIDEND-INCOME> 425927
<INTEREST-INCOME> 323832
<OTHER-INCOME> 0
<EXPENSES-NET> (1136877)
<NET-INVESTMENT-INCOME> (387118)
<REALIZED-GAINS-CURRENT> (7229019)
<APPREC-INCREASE-CURRENT> 5793552
<NET-CHANGE-FROM-OPS> (1822585)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1822585)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (20402078)
<GROSS-ADVISORY-FEES> (568318)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1193708)
<AVERAGE-NET-ASSETS> 36468813
<PER-SHARE-NAV-BEGIN> 9.07
<PER-SHARE-NII> (0.08)
<PER-SHARE-GAIN-APPREC> (0.31)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.68
<EXPENSE-RATIO> 3.27<F1>
<FN>
<F1>Expense ratio excluding waiver and payments by affiliates is 3.43%.
</FN>
</TABLE>
The Board of Directors and Shareholders
Templeton Vietnam and Southeast Asia Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Vietnam and Southeast Asia Fund, Inc. for the year ended March 31, 1999, we
considered its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of Templeton Vietnam and Southeast Asia Fund, Inc. is responsible
for establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls include safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and may not be detected. Also, projection of any evaluation of internal control
to future periods is subject to the risk that it may become inadequate because
of changes in conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control component does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
March 31, 1999.
This report is intended solely for the information and use of management, the
Board of Directors, and the Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
New York, New York
April 30, 1999
