Economy of Vietnam

Economy – overview:

Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Agriculture’s share of economic output has shrunk from about 25% in 2000 to 18% in 2014, while industry’s share increased from 36% to 38% in the same period. State-owned enterprises now account for only about 40% of GDP.

Vietnamese authorities have reaffirmed their commitment to economic modernization and a more open economy. Vietnam joined the WTO in January 2007, which has promoted more competitive, export-driven industries. Vietnam was one of 12-nations that concluded the Trans-Pacific Partnership free trade agreement negotiations in 2015.

Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. During 2015, Vietnam’s managed currency, the dong, depreciated about 5%. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year.

Vietnam is trying to reform its economy by restructuring public investment, state-owned enterprises, and the banking sector, although Hanoi’s progress in meeting its goals is lagging behind the proposed schedule. Vietnam’s economy continues to face challenges from an undercapitalized banking sector and nonperforming loans.

GDP (purchasing power parity):

$552.3 billion (2015 est.)
$517.7 billion (2014 est.)
$488.5 billion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 36

GDP (official exchange rate):

$191.5 billion (2015 est.)
GDP – real growth rate:
6.7% (2015 est.)
6% (2014 est.)
5.4% (2013 est.)
country comparison to the world: 20

GDP – per capita (PPP):

$6,000 (2015 est.)
$5,700 (2014 est.)
$5,400 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 161

Gross national saving:

29% of GDP (2015 est.)
31.9% of GDP (2014 est.)
31.1% of GDP (2013 est.)
country comparison to the world: 27

GDP – composition, by end use:

household consumption: 66.5%
government consumption: 6.2%
investment in fixed capital: 24.4%
investment in inventories: 1.7%
exports of goods and services: 86.8%
imports of goods and services: -85.6% (2015 est.)

GDP – composition, by sector of origin:

agriculture: 17.4%
industry: 38.8%
services: 43.7% (2015 est.)

Agriculture – products:

rice, coffee, rubber, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafood
Industries:
food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones

Industrial production growth rate:

7.5% (2015 est.)
country comparison to the world: 15

Labor force:

54.93 million (2015 est.)
country comparison to the world: 12

Labor force – by occupation:

agriculture: 48%
industry: 21%
services: 31% (2012)

Unemployment rate:

3% (2015 est.)
3.4% (2014 est.)
country comparison to the world: 23

Inflation rate (consumer prices):

0.6% (2015 est.)
4.1% (2014 est.)
country comparison to the world: 65

Central bank discount rate:

9% (31 December 2012)
15% (31 December 2011)
country comparison to the world: 31

Commercial bank prime lending rate:

8.1% (31 December 2015 est.)
8.67% (31 December 2014 est.)
country comparison to the world: 106

Stock of broad money:

$261.3 billion (31 December 2015 est.)
$235 billion (31 December 2014 est.)
country comparison to the world: 37

Stock of domestic credit:

$232.2 billion (31 December 2015 est.)
$209.6 billion (31 December 2014 est.)
country comparison to the world: 40

Market value of publicly traded shares:

$38.2 billion (31 December 2011 est.)
$26 billion (31 December 2011)
$37 billion (31 December 2010 est.)
country comparison to the world: 56

Current account balance:

$2.764 billion (2015 est.)
$9.33 billion (2014 est.)
country comparison to the world: 30

Exports:

$158.7 billion (2015 est.)
$150.2 billion (2014 est.)
country comparison to the world: 28

Exports – commodities:

clothes, shoes, electronics, seafood, crude oil, rice, coffee, wooden products, machinery

Exports – partners:

US 21.2%, China 13.3%, Japan 8.4%, South Korea 5.5%, Germany 4.1% (2015)

Imports:

$150.4 billion (2015 est.)
$138.1 billion (2014 est.)
country comparison to the world: 29

Imports – commodities:

machinery and equipment, petroleum products, steel products, raw materials for the clothing and shoe industries, electronics, plastics, automobiles

Imports – partners:

China 34.1%, South Korea 14.3%, Singapore 6.5%, Japan 6.4%, Hong Kong 5.1%, Thailand 4.5% (2015)

Stock of direct foreign investment – at home:

$100.5 billion (31 December 2015 est.)
$90.9 billion (31 December 2014 est.)
country comparison to the world: 46

Stock of direct foreign investment – abroad:

$7.7 billion (31 December 2009 est.)
$5.3 billion (31 December 2008 est.)
country comparison to the world: 65

Exchange rates:

dong (VND) per US dollar –
21,928 (2015 est.)
21,189 (2014 est.)
21,189 (2013 est.)
20,859 (2012 est.)
20,649 (2011 est.)

Source: World Bank, CIA