Following the war, Vietnamese migration was divided between humanitarian flows to the West, and labor migrants to allied communist countries. World Bank, October 2020, Note 2: The GDP growth projections for 2021 and 2022 (Constant Prices, Annual % Change) It works with a wide range of partners internationally and collaborates with intergovernmental organizations on measuring and communicating the economic value of peace. Vietnam's economy has been growing at between 4% and 8% since its recovery from the Asian Financial Crisis of 1997. The largest industries here are services which make up 49.75% of the GDP, industry which makes up 33.25%, and agriculture which makes up 17% of GDP. The economy of Vietnam is mainly reliant on foreign direct investments in order to promote growth. The path of economic restructuring has been pragmatic and omnivorous. March 3, 2019. The country has also invested in high value-added industries such as cars, electronic and computer technologies (software). Local enterprises are facing up to challenges in access to expensive credit and financial management due to high inflation (9-11%), high interest rates of saving (13-17%/year), and to currency devaluation (three times in 2010) [3] . Crops … Its … Reaching growth momentum in 2021. This analysis of Vietnam’s economy was written in December 2019 before there was any knowledge of a looming pandemic. The extreme poverty rate is estimated to have declined to below 3 percent. Therefore, any incident related to the contents or services must be resolved between the user and Export Entreprises S.A.; with no involvement or responsibility from Nordea Bank Abp or any of its subsidiaries, © 2016. were updated by the IMF in January 2021. Vietnam has considerable energy resources such as oil, gas and coal and its 41,000 km long waterways provide the basis for hydropower. In October, industrial production gained steam on a stronger manufacturing sector, while retail sales expanded notably and exports surged. For economics, Vietnam maintains a stable and high economic growth (7% in average for the last decade). Vietnam in APEC Some Socio-Economic Indicators of 21 Economies in APEC (2005) Vietnam 83.8 640 34.4 7.5 2020 31,625 United State of America 296.4 42,101 40.8 2.6 99433 904,383 Thailand 65.5 2,577 42.0 5.4 3687 110,110 Chinese Taipei 22.6 15,120 NA NA 1625 NA … Source: Vietnam’s economic freedom score is 61.7, making its economy the 90th freest in the 2021 Index. Vietnams economy continues to show fundamental strength, supported by robust domestic demand and export-oriented manufacturing. Vietnam relies on the petroleum industry for its domestic energy consumption and for export; crude oil production is expected to gradually decline. About. When northern Vietnam and southern Vietnam were divided politically in 1954, the North adopted communism and South capitalism. Published. Vietnam’s economy has changed rapidly since the 1980’s, taking millions out of poverty. Current economic risks relate to geopolitics, trade policy uncertainty, and domestic reform implementation. The contents and services provided are, fully, the responsibility of Export Entreprises S.A. “Industrialization and modernization is a process of fundamental and all-rounded change of production, business, services and social and economic management from the predominant use of artisanal labor to a predominant use of labor power17 with technology, methods and ways of working that are advanced, modern and rely upon the development of industry and scientific – technical progress to create high labor productivity. You're signed out. For the international outlook you can consult the latest travel updates available on the IATA website. Following 6.8 percent growth in 2017, preliminary data indicate that GDP growth accelerated to 7.1 percent in 2018, underpinned by a broad-based pickup in economic activity. Environmental factors affecting Vietnam. In 2017, Vietnam successfully chaired the Asia-Pacific Economic Cooperation (APEC) Conference with its key priorities including inclusive growth, innovation, strengthening small and medium enterprises, food security, and climate change. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor education that prevail in the country where she lives. Vietnam’s economic growth over the past two decades has been steady and impressive, averaging 5.5% since 1990 and nearly 8% annually through the 1990’s. The end of the Vietnam war, marked by the fall of Saigon in 1975, precipitated the mass Indochinese refugee crisis, which saw more than 2 million people flee the region, often on unseaworthy boats. on. Exports constitute an increasingly significant … The unemployment rate in Vietnam remains particularly low. Source: Main crops include rice, coffee, cashew nuts, corn, pepper, sweet potatoes, peanuts, cotton, rubber and tea as well as aquaculture. The economy will grow by 5.3% in real terms in 2021—a slower pace relative to recent years, amid a gradual recovery from the coronavirus pandemic. Agriculture represented 14% of GDP and employs 36% of the total workforce in 2020 (World Bank). Manufacturing rose by 10.9% year-on-year in 2019, contributing a record industrial trade surplus of over USD 10 billion (Vietnamese government).Services represented 41.6% of GDP and employed 35% of the total workforce in 2020 (World Bank). Vietnam The Human Capital Index (HCI) database provides data at the country level for each of the components of the Human Capital Index as well as for the overall index, disaggregated by gender. Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. The Vietnam Economic Success Story ... Manufacturing jobs tend to pay better wages than agriculture, and this has been a key factor in the growth of Vietnam’s middle class, which today we estimate stands at about 20% of Vietnam’s population of 96 million. Nordea and the Nordea logo are registered trademarks. Vietnam has boosted its international economic integration as it has signed a number of free trade agreements, including the European Free Trade Association (EVFTA) and the Trans-Pacific Partnership (TPP), and is likely to create more opportunities for the country to integrate further with regional and global economies. The largest industries here are services which make up 49.75% of the GDP, industry which makes up 33.25%, and agriculture which makes up 17% of GDP. Share ; Tweet; While addressing a joint Press Conference at Hanoi, after his summit, with North Korean Leader Kim Jong Un, US President, Donald Trump spoke not just about the Summit, but also the current state of US-China relations. For economics, Vietnam maintains a stable and high economic growth (7% in average for the last decade). More recently, Vietnam's rapid economic growth … Report It to Us. The extension of Nguyen Phu Trong's tenure as general secretary following the ruling party's national congress will ensure policy continuity, and major political reform will not occur in the forecast period. Vietnam is one of the fastest growing countries in the world and its economy has shown resilience to trade wars and slower growth rates in neighbouring China. Economic factors affecting Vietnam Vietnam is the 46 th largest economy in the world. The economy began the fourth quarter on a robust footing according to available data. Vietnam's economy is based on large state-owned industries such as textiles, food, furniture, plastics and paper as well as tourism and telecommunications. The economy began the fourth quarter on a robust footing according to available data. ($ 220 bn. November 17, 2020. It focuses on the factors that demonstrate Vietnam’s standing as an epicenter of startup culture in SEA. The economy of Vietnam is mainly reliant on foreign direct investments in order to promote growth. The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. Any Comment About This Content? Tridivesh Singh Maini. China has become a pull and push factor in the Vietnam–US relationship over the last four decades. }}, Economic freedom in the world (interactive map) It reached 3.3% in 2020 from 2.2% in 2019 and is expected to come back to 2.7% in 2021 and 2.4% in 2022 (IMF, 2021). As in China, however, the economy is increasingly capitalistic. Instead, Vietnam should increase its labor productivity growth within sectors to achieve an economy-wide boost of some 50 percent—to 6.4 percent annually—if the economy is to meet the government’s target of a 7 to 8 percent annual GDP expansion by 2020. Economic reforms in Vietnam. Source: 2019 Index of Economic Freedom, Heritage Foundation. The economy will grow by 5.3% in real terms in 2021—a slower pace relative to recent years, amid a gradual recovery from the coronavirus pandemic. The Vietnamese currency is the dong. Katso, miten voimme auttaa sinua laajentamaan liiketoimintaasi ulkomaille. Despite being a 'newcomer' in the oil industry, Vietnam has become the third largest Southeast Asian producer. Inflation went up to 3.8% in 2020 from 2.8% in 2019, and is forecast to average 4% in 2021 and 2022 by the latest World Economic Outlook of the IMF (January 2021). Another factor has been the implementation of policies that foster entrepreneurialism. Contact Us, Business Intelligence/ Business Analytics, Gross Fixed Capital Formation (VND Billion), GDP From Public Administration (VND Billion). For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19. Find more information about your business sector on our service Market reports. Nonetheless, labour costs remain competitive, which help attract foreign investments to the country. An all-out trade war could slow global trade, and in turn, Vietnam’s economy. Vietnam Economic Outlook. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms. This limited increase is a result of tightening monetary policies and limits on new government guarantees. Videos you watch may be added to the TV's watch history and influence TV recommendations. Vietnam Risk Assessment. The president is the nominal head of state; the incumbent is Nguyễn Phú Trọng. Local enterprises are facing up to challenges in access to expensive credit and financial management due to high inflation (9-11%), high interest rates of saving (13-17%/year), and to currency devaluation (three times in 2010) . For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Vietnam on the International Trade Centre's COVID-19 Temporary Trade Measures webpage. Powered by Export-Entreprises.com. Latest Update: March 2021, Turvallinen työkalu kansainvälistä kauppaa varten. For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19. Economic reforms in Vietnam When northern Vietnam and southern Vietnam were divided politically in 1954, the North adopted communism and South … For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and  macroeconomic) taken by the French government to limit the socio-economic impact of the COVID-19 pandemic,  please consult the section dedicated to France in the IMF’s Policy Tracker platform. Contextual Background on Vietnamese Economy Economic Structure Share of GDP by value added (% of GDP) Primary: 17% Industrial: 33% Services: 50% Main export industries (+ major firms) Textiles, apparel Mobile phones (20% of exports in 2016) Television screens, tourism Key drivers of economic growth 13th most populous country, with a population of over 90 million people with a … Industry contributed 34.5% of GDP and employed 28% of the total workforce in 2020 (World Bank). Nonetheless, public authorities continue to intervene in both directions to keep the Dong within a narrow band against major international currencies and accrue foreign reserves. US-Vietnam economic relations: The China factor. This was because major efficiencies were possible simply because hostilities had ended. A total of 44.3% of the labor force works in agriculture, 22.9% works in industry, and 32.8% works in the service sector. All rights reserved. Tourism has been an important actor to transform Vietnam’s agrarian economy to a service one. It continues to be one of the fastest growing economies in the region with GDP growth of 7.1% in 2018. Minor road or bridge repairs alone could bring increases in productivity. Source: The Economist - Business Environment Rankings 2014-2018. Vietnam exports clothes, shoes, crude oil, and rice. This accelerated economic pace is due to labour shifting from agriculture to manufacturing and services, private investment, a strong tourist sector, higher wages, and accelerating urbanisation. Transparency International ranks Vietnam as 104th out of 180 countries in its Corruption Perceptions Index 2020, from the 96th spot a year earlier. 2 years ago. So from a theoretical and practical view industrialization and modernization are a necessar… However, it is worth noting that the fear of corona virus (COVID-19) has been a threat to the tourism … Looking ahead to the longer term, Vietnam … Vietnam is one of the most beautiful countries in Asia. The results of Vietnam’s three decades of economic transition are impressive. While the recent unprecedented threats of covid-19 … Low-cost manufacturers are likely to expedite plans to shift production from China, where wages are already considerably higher, to Vietnam. Efforts to normalise Vietnam–US relations in the late 1970s failed partly because of China’s increased cooperation with the … Exports constitute an increasingly significant contribution to Vietnam's GDP and certain sectors, such as industrial production, textile, electronics and seafood production have been growing rapidly. Government spending and debt remained in check and bank capital rules were strengthened. GDP was approximately £160 bn. It imports leather and textiles, machinery, electronics, plastics, and automobiles. The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom).