Vietnam Growth Story


Vietnam is the third fastest growing country in the Asia Pacific

Vietnam has continued to show strong and consistent growth over the last decade, and has overcome macroeconomic imbalances and a major global downturn the last few years. Vietnam is the third fastest growing country in the Asia Pacific with GDP growth forecasted to reach around 7% in the medium term.

The excellent demographics, rising middle income class, trade openness and continuous financial and legal reforms have created a stable social, political and economic environment and are the key drivers for economic expansion. The Government’s prompt response to challenges over the last few years has been appropriate and reinforces confidence in the long-term path of the country. Vietnam is seen as one of the most promising countries and is among the next 11 emerging market countries.

Natural Advantages

At the centre of Indochina region with long coastline, bridging China and ASEAN countries, Vietnam has a strategic geographic location in Asia. Particularly, over the last decade, Asia emerges as a dynamic and fast growing region with increased integration. Vietnam enjoys natural opportunities to develop tourism, agriculture and aquaculture, sea trade and regional cooperation. 


Furthermore, with rich natural resources such as land, water and significant mineral reserves of coal, bauxite, phosphates, offshore oil & gas, hydropower, Vietnam has energy independence and potentials for developing agricultural and industrial production.

With 87 million people in 2010 and expected to keep expanding at more moderate pace of 1% until 2020. Vietnam has a good size of population for development.

With two thirds of the population in the age of 15-59 years old, the population is young and in the golden stage. The dependency rate has been fallen to 0.50 in 2010 from 0.67 in 2000.
Vietnam is also among the countries with high literacy rate, i.e. 94% in 2009

Vietnam disposable income has increased by four times over the past decade and the middle class is rising with significant portion. In 2007, up to 45% of the households had average annual disposable income in the range of US$700-1,900.

High Openness

Vietnam total trade to GDP robustly rose in the last ten years to 150% in 2010 with strong export growth of 17%. Its share in the world merchandise trade, thus, surged during the period and Vietnam is among the top 50 leading exporters and importers. The proportion of processed and semi-processed continually increased.

Though imports also accelerated, Vietnam has positive import structure with 90% of the import turnover attributed to production goods.

Continuous Reforms 

Vietnam's growth is rooted in socio-political and economic reforms that have been in process for years.

It has gradually integrated into the world market since Doi Moi in 1986 with several bilateral and regional trade agreements, notably accession into WTO in 2006.

Adopted legislation including but not limited to the Investment Law, the Enterprise Law, the Land Law, the Securities, and numerous iterations of the equitization process guidelines, are further evidence of the Government's commitment and progress in transforming Vietnam's economy from a centrally planned agrarian system to a diversified market-oriented one.


12-06-2014
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