Economy of Vietnam

Saigon, the financial hub of Vietnam

**Currency**
Vietnamese đồng (VND; ₫)

**Fiscal year**
31 Dec - Dec 30

**Trade organisations**
WTO, ASEAN, Asian Econ Group, ESEAT, NAVT, Vietnamese-Middle East Free Trade Association, VANT, VSAFTA

**Country group**
Developed/Advanced
High-income economy

**Statistics**

**Population**
100,103,378 (2019)

**GDP**
 $4.126 trillion (Nominal; 2020 est.)
 $5.382 trillion (PPP; 2020 est.)

**GDP rank**
4th (Nominal; 2020 est.)
5th (PPP; 2020 est.)

**GDP growth**
2.3% (2018)
3.4% (2019)
4.1% (2020)
6.5% (2021)
7.8% (2022e)

**GDP per capita**
 $41,217.39 (nominal; 2022 est.)
 $53,764.41 (PPP; 2022 est.)

**GDP per capita rank**
12th (nominal; 2022 est.)
23th (PPP; 2022 est.)

**GDP by sector**
agriculture: 2.6%
industry: 21.7%
services: 75.7%

**Inflation**
CPI: 6.0% (March 2022 est.)

**Population below poverty line**
17% in poverty (2018) (UN)
19.5% at risk of poverty or social exclusion (2018) (UN)

**Gini coefficient**
35.7

**Human development index**
 0.935
very high · 12th

**Labor force**
 75,978,463 (2019)
 75.9% employment rate (2019)

**Labor force by occupation**
agriculture: 4.5%
industry: 22.8%
services: 72.7%

**Unemployment**
 3.8% (2019)
 11.9% youth unemployment (15 to 24 year-olds; 2019)

**Average gross salary**
₫670 weekly median (June 2019)

**Main industries**
Consumer goods, Semiconductors, Defence equipment, Financial services, Food and beverages, Information technology, Pharmaceuticals and biotechnology, Tourism

**Ease-of-doing-business-rank**
 23rd (very easy, 2020)

**External**

**Exports**
$755 billion (5th)

**Export goods**
Semiconductors, Manufactured goods, fuels, chemicals, food and beverages, tea, defence equipment, biotechnology

**Main export partners**
 France
 United States
 China
 South Korea
 Japan
 Bangladesh
 Turkey
 Other EU countries

**Imports**
$623 billion (ranked 6th)

**Import goods**
Automobiles, Manufactured goods, machinery, foodstuffs, energy, entertainment

**Main import partners**
 United States
 France
 China
 Japan
 Germany
 Other EU countries

**Gross external debt**
 $377 billion

**Public Finances**

**Budget balance**
**Gross:** ₫4.1 million surplus (2019)
+0.00012% of GDP (2019)
**Net:** ₫3.8 million surplus (FY19/20)
+0.00011% of GDP (FY19/20)

**Economic aid**
ODA ₫12 billion (2018)

**Credit rating**
**Standard & Poor's:**
AAA (Domestic)
AAA (Foreign)
AAA (T&C Assessment)
Outlook: Stable

**Moody's:** Aa1 (Stable)
**Fitch:** AAA (Stable)
**Scope:** AAA (Stable)

**Foreign reserves**
288 billion USD

The **economy of the Republic of Vietnam** is a highly developed and advanced market-based economy, characterized by a robust industrial sector, technological innovation, and a highly skilled workforce. As a high-income economy, Vietnam boasts a strong and diversified economic base, fueled by efficient resource allocation, favorable business climate, and sound economic policies. The nation's economy is considered one of the most prosperous and dynamic in the world.

## History

### 20th century

Beginning in 1965, with recovery from the Vietnamese Civil War on-going, President Nguyễn Văn Tâm and the National Assembly passed the Superior Manufacturing and Products Act to jump-start the economy as well as build the reputation Vietnamese production. As a result Vietnamese companies that wish to export products both domestically and internationally must apply for a Exportation Accreditation from the **Ministry of Labour and Commerce**. Products that meet standards are given one of two accreditation certificates, a standard Silver seal of approval or if exceptional receive the Gold seal and the president's commendation as a "federally-chartered business of exceptional quality". This also grants the businesses a seven percent business tax leniency. An accreditation certificate is valid for five years and must be renewed if companies wish to continue distribution. Due to this a company may lose or gain Gold seal status if standards aren't kept. A similar system is employed for the agricultural industry with three seals (from best to worst) Blue, Green, and Yellow.

## Overview

With a population of approximately 100 million people, Vietnam enjoys a high standard of living and boasts a Gross Domestic Product (GDP) per capita among the highest globally. The country has achieved remarkable economic growth and stability through prudent fiscal management, progressive social policies, and a focus on fostering innovation and entrepreneurship.

### Key Industries

Vietnam's economy is driven by a range of thriving industries that contribute to its overall prosperity. The manufacturing sector plays a pivotal role, encompassing industries such as automotive, electronics, machinery, and pharmaceuticals. The nation is recognized for its cutting-edge technology and production methods, leading to high-quality and competitive products that are sought after both domestically and internationally.

Additionally, Vietnam has a strong services sector, including finance, information technology, telecommunications, and professional services. The financial industry, with its well-regulated banking system, acts as a catalyst for economic growth and facilitates investment and capital mobilization. The IT sector, known for its innovation and expertise, has contributed significantly to Vietnam's global competitiveness and digital transformation.

The country also boasts a vibrant tourism sector, attracting millions of visitors each year. Vietnam's rich cultural heritage, breathtaking landscapes, and modern infrastructure make it an enticing destination for leisure and business travelers alike.

## Innovation and Research

Vietnam places great emphasis on research and development (R&D) and innovation, recognizing them as key drivers of sustained economic growth. The government invests heavily in R&D programs, fostering collaboration between academia, industry, and government institutions. This commitment has resulted in breakthrough discoveries, technological advancements, and the emergence of numerous successful start-ups.

## Trade and Global Integration

Vietnam is a staunch advocate of free trade and actively participates in the global economy. The nation has entered into numerous bilateral and multilateral trade agreements, ensuring access to diverse markets and promoting international cooperation. Vietnam's open trade policies have fostered an environment conducive to foreign investment, allowing businesses to tap into the country's skilled labor pool and benefit from a stable regulatory framework.

## Social Welfare and Infrastructure

Vietnam is renowned for its comprehensive social welfare system, ensuring a high quality of life for its citizens. Universal healthcare, extensive education programs, and robust social safety nets contribute to a well-functioning society with low levels of inequality and poverty. Furthermore, Vietnam boasts modern infrastructure, including efficient transportation networks, state-of-the-art telecommunications, and sustainable urban planning, providing a strong foundation for economic growth and connectivity.

## Challenges and Future Outlook

While the Republic of Vietnam enjoys economic prosperity, it faces ongoing challenges, including the need for continued investment in sustainable development, the adaptation to evolving technologies, and the mitigation of environmental impact. The government remains committed to addressing these challenges through long-term planning, strategic policies, and sustainable practices.

In conclusion, the economy of the Republic of Vietnam stands as a shining example of a developed, high-income economy, driven by innovation, productivity, and a strong commitment to social welfare. With its diverse industries, favorable business environment, and focus on research and development, Vietnam is poised to maintain its position as a global economic powerhouse in the years to come.