Vietnam Economy Profile 2009

Economy - overview

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. Since 2001, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime. Vietnam's exports to the US increased 900% from 2001 to 2007. Vietnam joined the WTO in January 2007 following over a decade long negotiation process. WTO membership has provided Vietnam an anchor to the global market and reinforced the domestic economic reform process. Among other benefits, accession allows Vietnam to take advantage of the phase-out of the Agreement on Textiles and Clothing, which eliminated quotas on textiles and clothing for WTO partners on 1 January 2005. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 20% in 2008. Deep poverty has declined significantly and is now smaller than that of China, India, and the Philippines. Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one-and-a-half million people every year. The global financial crisis, however, will constrain Vietnam's ability to create jobs and further reduce poverty. As global growth sharply drops in 2009, Vietnam's export-oriented economy - exports were 68% of GDP in 2007 - will suffer from lower exports, higher unemployment and corporate bankruptcies, and decreased foreign investment.

GDP (purchasing power parity)

$241.7 billion (2008 est.)
$227.6 billion (2007 est.)
$209.8 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$89.83 billion (2008 est.)

GDP - real growth rate

6.2% (2008 est.)
8.5% (2007 est.)
8.2% (2006 est.)

GDP - per capita (PPP)

$2,800 (2008 est.)
$2,700 (2007 est.)
$2,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 22%
industry: 39.9%
services: 38.1% (2008 est.)

Population below poverty line

14.8% (2007 est.)

Labor force

47.41 million (2008 est.)

Labor force - by occupation

agriculture: 55.6%
industry: 18.9%
services: 25.5% (July 2005)

Unemployment rate

4.7% (2008 est.)
4.3% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.1%
highest 10%: 29.8% (2006)

Distribution of family income - Gini index

37 (2004)
36.1 (1998)

Investment (gross fixed)

41.9% of GDP (2008 est.)

Budget

revenues: $24.27 billion
expenditures: $28.85 billion (2008 est.)

Public debt

45.5% of GDP (2008 est.)
65.9% of GDP (2004 est.)

Inflation rate (consumer prices)

24.4% (2008 est.)
8.3% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
6.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
11.18% (31 December 2007)

Stock of money

$NA (31 December 2008)
$27.01 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$50.81 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$68.27 billion (31 December 2007)

Industries

food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, paper

Industrial production growth rate

6.3% (2008 est.)

Electricity - production

61.02 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 43.7%
hydro: 56.3%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

48.08 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

350,700 bbl/day (2007 est.)

Oil - consumption

271,100 bbl/day (2007 est.)

Oil - imports

271,100 bbl/day (2007)

Oil - exports

394,400 bbl/day (2005)

Oil - proved reserves

3.3 billion bbl (1 January 2008 est.)

Natural gas - production

6.86 billion cu m (2007 est.)

Natural gas - consumption

6.86 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

192.5 billion cu m (1 January 2008 est.)

Current Account Balance

-$11.71 billion (2008 est.)
-$6.993 billion (2007 est.)

Agriculture - products

paddy rice, coffee, rubber, cotton, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafood

Exports

$61.6 billion (2008 est.)
$48.56 billion (2007 est.)

Exports - commodities

crude oil, marine products, rice, coffee, rubber, tea, garments, shoes

Exports - partners

US 20.9%, Japan 13.7%, Australia 7.4%, China 6.9%, Germany 4.5% (2008)

Imports

$77.61 billion (2008 est.)
$58.92 billion (2007 est.)

Imports - commodities

machinery and equipment, petroleum products, fertilizer, steel products, raw cotton, grain, cement, motorcycles

Imports - partners

China 21.3%, Singapore 11.7%, Japan 10.4%, South Korea 7.4%, Thailand 6.6% (2008)

Reserves of foreign exchange and gold

$23.18 billion (31 December 2008 est.)
$23.75 billion (31 December 2007 est.)

Debt - external

$23.09 billion (31 December 2008 est.)
$21.83 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$40.34 billion (31 December 2008 est.)
$32.74 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$9.589 billion (31 December 2008)
$19.54 billion (31 December 2007)
$9.093 billion (31 December 2006)

Economic aid - recipient

$5.4 billion in credits and grants pledged by the 2007 Consultative Group meeting in Hanoi (2007)

Currency (code)

dong (VND)

Currency (code)

VND

Exchange rates

dong (VND) per US dollar - 16,548.3 (2008 est.), 16,119 (2007), 15,983 (2006), 15,746 (2005), NA (2004)

Fiscal year

calendar year