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flag Vietnam Vietnam: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After adopting a major reform plan (Doi Moi) in 1986, Vietnam experienced a period of strong growth. From 2004 to 2007, the annual GDP growth surpassed 8%, then, it slowed down to 3.5% in 2008. Vietnamese growth is sustained by international trade and foreign investments, with exports ensuring more than two-thirds of the GDP. The impact of the financial crisis on Vietnam was limited with a GDP growth of more than 6% in 2010.

The government launched reforms for all the key sectors of the economy and anticipates partial privatization of public companies; however, their implementation remains gradual. A tax reform has also been undertaken in order to compensate for the fall in customs revenues, as a consequence of its entry into the WTO and to make the country more attractive to investors.  In order to deal with the global financial crisis, the government has established several recovery plans aimed at improving the business climate and therefore promoting production and exports, stimulating consumption and investments, increasing social security and reducing poverty, introducing monetary policies and effective taxation.

The reforms have succeeded in the improvement of the standard of living of the inhabitants. The GDP per capita went from USD 220 in 1994 to more than USD 1,000 today. The percentage of the population living on less than a dollar per day has declined in a significant way and it is now lower than China, India or the Philippines. However, the urban unemployment rate has risen in recent years and under-employment, estimated at 30% remains constant.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 93.17103.57e121.61e137.50154.20
GDP (Constant Prices, Annual % Change) 5.36.85.8e6.36.8
GDP per Capita (USD) 1,0681,174e1,362e1,5211,686
General Government Gross Debt (in % of GDP) 51.252.850.348.147.2
Inflation Rate (%) 6.79.2e18.812.16.0
Unemployment Rate (% of the Labor Force) 6.05.05.05.05.0
Current Account (billions USD) -6.12-3.93e-5.74e-5.26-4.89
Current Account (in % of GDP) -6.6-3.8e-4.7-3.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The declining agricultural sector is dominated by cultivation and plantations (rice, coffee, cashew nuts, corn, pepper, sweet potatoes, peanuts, cotton, rubber and tea), and aquaculture. However, it is the sector that employs the biggest part of the population.

Industry is the main driver of growth in the Vietnamese economy. The sector is still dominated by large public groups. The country's main industries are textile, food industry, furniture industry, plastics and paper industries. The energy sector is in full-growth since several years ago (coal, hydrocarbons, electricity, cement, steel and naval industry). Even though it is the "new comer" in the oil industry, today Vietnam is the third biggest Southeast Asian producer. The country has also invested into high value-added industries such as cars, electronic and computer technologies (software).

The services sector is sustained by tourism and telecommunications.  These profitable sectors should strongly contribute to the economic health of the country in the next following years.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 51.7 20.2 28.2
Value Added (in % of GDP) 19.8 39.6 38.9
Value Added (Annual % Change) 2.8 7.0 7.5

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Vietnamese Dong (VND) - Average Annual Exchange Rate For 1 USD 15,994.2516,105.1316,302.2517,065.0818,612.92

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Vietnam on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
51.6/100
Position:
Mostly unfree
World Rank:
134/179
Regional Rank:
29/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Vietnam is one of the Asian economies most open to international trade, which represents more than 100% of the GDP, more than twice the Chinese rate and more than 4 times the Indian rate.  Vietnam has demonstrated its strong commitment to trade liberalization in these recent years. It has joined the WTO and signed Free Trade Agreements (FTAs) with ASEAN countries and the USA. Vietnam also has a cooperation agreement with the EU.

Vietnamese trade is characterized by a strong geographic inequality, the country shows a trade surplus with western countries and a growing deficit with its Asian neighbors. Vietnam is currently classified as the third largest rice exporter in the world. The other exports mainly constitute textiles, clothing and footwear products and crude oil, whereas imports are mainly made up of tool machinery, refined oil and steel.

The main export customers of Vietnam are the USA, Japan, the EU, Australia and China. For imports, the country's main partners are China, Singapore, Japan, South Korea and Thailand.

The global economic crisis affected Vietnam's foreign trade. Exports dropped by 14% in relation to 2009, and imports by 28%, the trade deficit rose to USD 500 million.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 45,01562,68280,71469,94984,801
Exports of Goods (million USD) 39,82648,56162,68557,09672,192
Imports of Services (million USD) 5,0827,1377,8816,7598,392
Exports of Services (million USD) 5,0606,4156,9565,6667,503
Imports of Goods and Services (Annual % Change) -7.627.67.66.79.5
Exports of Goods and Services (Annual % Change) -10.111.35.011.111.5
Imports of Goods and Services (in % of GDP) 78.292.793.178.782.6
Exports of Goods and Services (in % of GDP) 73.676.977.968.370.7
Trade Balance (million USD) -2,776-10,43812,7837,6075,147
Trade Balance (Including Service) (million USD) -2,784-11,19313,73310,0287,608
Foreign Trade (in % of GDP) 151.8169.6171.1147.0153.3

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2009
United States 20.0%
Japan 11.1%
China 9.5%
Switzerland 4.4%
Australia 4.2%
See More Countries 50.9%
Main Suppliers
(% of Imports)
2009
China 23.8%
Japan 10.7%
South Korea 10.0%
Thailand 6.5%
Singapore 6.1%
See More Countries 43.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 10.8%
RiceRice 4.7%
Footwear with outer soles of rubber, plastics,...Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather (excl. orthopaedic footwear, skating boots with ice or roller skates attached, and toy footwear) 3.6%
Furniture and parts thereof, n.e.s. (excl. seats...Furniture and parts thereof, n.e.s. (excl. seats and medical, surgical, dental or veterinary furniture) 3.0%
Coffee, whether or not roasted or decaffeinated;...Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion 3.0%
See More Products 74.8%
Main Imports
(% of Imports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 9.3%
Flat-rolled products of iron or non-alloy steel,...Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, plated or coated 3.0%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.2%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 1.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 1.5%
See More Products 82.4%

Source: Comtrade, Last Available Data

 
See More Products
Main imports (Intracen)
Main exports (Intracen)
 

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Sources of General Economic Information

Ministries
Vietnam Ministry of Trade
Vietnam Ministry of Planning and Investment
Statistical Office
General Statistics Office of Vietnam
Central Bank
The State Bank of Vietnam
Stock Exchange
Hochiminh Stock Exchange
Hanoi Securities Trading Center
Search Engines
Monava
Google Vietnam
Yahoo! Vietnam
Search.com.vn
Socbay.com
Economic Portals
Vietnam Economic Portal

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Political Outline

Executive Power
The President of Vietnam is the incumbent head of state and the nominal commander in chief of the military of Vietnam, chairing the Council on National Defense and Security. The Prime Minister of Vietnam Nguyen Tan Dung is the head of government, presiding over a council of ministers composed of 3 deputy prime ministers and the heads of 26 ministries and commissions.The President is elected by the parliament from among its members for a five-year term. The Prime Minister is appointed by the President from among the members of the parliament as head of the government. The Cabinet is appointed by the President on the recommendation of the Prime Minister and ratification of the parliament. The real power centre is the Communist Party of Vietnam (CPV).
Legislative Power
The National Assembly of Vietnam is the unicameral legislature of the government, composed of 498 members. It is superior to both the executive and judicial branches. All members of the council of ministers are derived from the National Assembly. Its members are elected by popular vote to serve five-year terms. According to the country's Constitution, National Assembly is the highest representative body of the people and the only organization with legislative powers. It has a broad mandate to oversee all government functions.
Main Political Parties
The Communist Party of Vietnam (CPV).
Current Political Leaders
President: Trong Tan SANG (since 25 June 2011) – CPV
Prime Minister: Prime Minister Nguyen Tan DUNG (since 27 June 2006) – CPV
Next Election Dates
Presidential: December 2015
National Assembly: December 2012
 

Indicator of Freedom of the Press

World Rank:
165/178
Evolution:
1 place up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
7/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012