Vietnam

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Vietnam - In Short.

Overview of Vietnam

Ancient Vietnam was centered on the Red River Valley and was under Han Chinese rule until approximately the 10th century. The Ly Dynasty (11th-13th century) ruled the first independent Vietnamese state, which was known as Dai Viet, and established their capital at Thang Long (Hanoi). Under the Tran Dynasty (13th-15th century), Dai Viet forces led by one of Vietnam’s national heroes, TRAN Hang Dao, fought off Mongol invaders in 1279. Following a brief Chinese occupation in the early 1400s, the leader of Vietnamese resistance, LE Thai To, made himself emperor and established the Le Dynasty, which lasted until the late 18th century, although not without decades of political turmoil, civil war, and division. During this period, Dai Viet expanded southward to the Central Highlands and Mekong Delta, reaching the approximate boundaries of modern-day Vietnam by the 1750s. Dai Viet suffered additional civil war and division in the latter half of the 18th century, but was reunited and renamed Vietnam under Emperor NGUYEN Phuc Anh (aka Gia Long) in 1802.The Nguyen Dynasty would be the last Vietnamese dynasty before the conquest by France, which began in 1858 and was completed by 1884. Vietnam became part of French Indochina in 1887. It declared independence after World War II, but France continued to rule until its 1954 defeat by communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the communist North and anti-communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of its diplomatic isolation, its conservative leadership policies, and the persecution and mass exodus of individuals, many of them successful South Vietnamese merchants. However, since the enactment of Vietnam’s “doi moi” (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Since implementation, the economy has seen strong growth, particularly in agricultural and industrial production, construction, exports, and foreign investment. Increased tourism has also become a key component of economic growth. Nevertheless, the Communist Party maintains tight political and social control of the country and Vietnam faces considerable challenges including rising income inequality, corruption, inadequate social welfare, and a poor human rights record.Since withdrawing its military occupation forces from Cambodia in the late 1980s and the end of Soviet aid by 1991, Vietnam has practiced a non-aligned foreign policy that emphasizes friendly ties with all members of the international community. Relatedly, Vietnam adheres to a security doctrine called the “Four Nos” (no alliances, no siding with one country against another, no foreign bases, and no using force in international relations). Despite longstanding tensions with Beijing regarding its expansive claims that overlap with Hanoi’s own claimed maritime boundaries in the South China Sea, Vietnam puts a priority on stable relations with China, given its proximity, size, and status as Vietnam’s largest trading partner.
Value
Country Full Name
Vietnam
Country Code
VNM
Region
East Asia & Pacific
Income Group
Lower middle income
Currency Unit
GDP
2.71E+11
Population
97338583
Land Area
310070
Net National Income Per Capita
2230.486439
GDP per Capita (PPP)
8650.13347

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Vietnam - Economic

Economy of Vietnam

Vietnam is a densely populated developing country that has been transitioning since 1986 from the rigidities of a centrally planned, highly agrarian economy to a more industrial and market based economy, and it has raised incomes substantially. Vietnam exceeded its 2017 GDP growth target of 6.7% with growth of 6.8%, primarily due to unexpected increases in domestic demand, and strong manufacturing exports.Vietnam has a young population, stable political system, commitment to sustainable growth, relatively low inflation, stable currency, strong FDI inflows, and strong manufacturing sector. In addition, the country is committed to continuing its global economic integration. Vietnam joined the WTO in January 2007 and concluded several free trade agreements in 2015-16, including the EU-Vietnam Free Trade Agreement (which the EU has not yet ratified), the Korean Free Trade Agreement, and the Eurasian Economic Union Free Trade Agreement. 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. Seeking to diversify its opportunities, Vietnam also signed the Comprehensive and Progressive Agreement for the Transpacific Partnership in 2018 and continued to pursue the Regional Comprehensive Economic Partnership.To continue its trajectory of strong economic growth, the government acknowledges the need to spark a ‘second wave’ of reforms, including reforming state-owned-enterprises, reducing red tape, increasing business sector transparency, reducing the level of non-performing loans in the banking sector, and increasing financial sector transparency. Vietnam’s public debt to GDP ratio is nearing the government mandated ceiling of 65%.In 2016, Vietnam cancelled its civilian nuclear energy development program, citing public concerns about safety and the high cost of the program; it faces growing pressure on energy infrastructure. Overall, the country’s infrastructure fails to meet the needs of an expanding middle class. Vietnam has demonstrated a commitment to sustainable growth over the last several years, but despite the recent speed-up in economic growth the government remains cautious about the risk of external shocks.

Unemployment Rate

Inflation Rate

Vietnam - GDP Composition

GDP Composiiton & Value Added of Vietnam

Last Updated: Jan, 2021, Updated For 2020.

Vietnam - GDP, Value Added

Demographics of Vietnam

though it has one of the highest population densities in the world, the population is not evenly dispersed; clustering is heaviest along the South China Sea and Gulf of Tonkin, with the Mekong Delta (in the south) and the Red River Valley (in the north) having the largest concentrations of people
Geographic Location

Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia

Races

Kinh (Viet) 85.3%, Tay 1.9%, Thai 1.9%, Muong 1.5%, Khmer 1.4%, Mong 1.4%, Nung 1.1%, other 5.5% (2019 est.)note: 54 ethnic groups are recognized by the Vietnamese Government

Languages

Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon-Khmer and Malayo-Polynesian)major-language

Religion

Catholic 6.1%, Buddhist 5.8%, Protestant 1%, other 0.8%, none 86.3% (2019 est.)note: most Vietnamese are culturally Buddhist

Dependency & Expectancy of Vietnam

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Vietnam

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, APEC, ARF, ASEAN, CICA, CP, EAS, FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, MIGA, NAM, OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Vietnam

Export of Vietnam

Import Destination

Export Destination