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The Economy of Vietnam

Vietnamese Economy

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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. Real GDP growth for 2009 could fall between 4% and 5%. Inflation, which reached nearly 25% in 2008, will likely moderate to single digits in 2009.

GDP:

GDP - real growth rate: 6.2% (2008 est.) 8.5% (2007 est.) 8.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 19% industry: 42.7% services: 38.4% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 28.9% (2004)

Distribution of family income - Gini index: 37 (2004)

Inflation rate (consumer prices):

Labor force: 47.41 million (2008 est.)

Labor force - by occupation: agriculture: 55.6% industry: 18.9% services: 25.5% (July 2005)

Unemployment rate: 4.9% (2008 est.)

Budget: revenues: $22.39 billion expenditures: $24.19 billion (2008 est.)

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

Industrial production growth rate: 7% (2008 est.)

Electricity - production: 61.02 billion kWh (2007 est.)

Electricity - production by source:

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 - exports: 394,400 bbl/day (2005)

Oil - imports: 271,100 bbl/day (2007)

Oil - proved reserves: 600 million 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.)

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

Exports: $63.73 billion f.o.b. (2008 est.)

Exports - commodities: crude oil, marine products, rice, coffee, rubber, tea, garments, shoes

Exports - partners: US 20.8%, Japan 12.5%, Australia 7.3%, China 6.9%, Singapore 4.5% (2007)

Imports: $79.37 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, petroleum products, fertilizer, steel products, raw cotton, grain, cement, motorcycles

Imports - partners: China 19.9%, Singapore 12.1%, Taiwan 11%, Japan 9.9%, South Korea 8.5%, Thailand 6% (2007)

Debt - external: $23.72 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

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: