Vietnam Economy Profile 2012

Economy Overview
EuroVietnam Consulting & Trade Promotion Agency
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Vietnam Economy Profile 2012

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. While Vietnam's economy remains dominated by state-owned enterprises (SOEs), which still produce about 40% of GDP, 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 joined the WTO in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 20% in 2010, while industry's share increased from 36% to 41% in the same period. Deep 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. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-10 growing less than the 7% per annum average achieved during the last decade. In 2010, exports increased by more than 25%, year-on-year, but the trade deficit remained high, prompting the government to consider administrative measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance, and, since 2008, the government devalued it by 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached 11.8% in 2010. Vietnam's economy also faces challenges from falling foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the SOE Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

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Vietnam Economy Profile 2012

GDP (purchasing power parity) $276.6 billion (2010 est.) $259 billion (2009 est.) $245.9 billion (2008 est.) note: data are in 2010 US dollars GDP (official exchange rate) $103.6 billion (2010 est.) GDP - real growth rate 6.8% (2010 est.) 5.3% (2009 est.) 6.3% (2008 est.) GDP - per capita (PPP) $3,100 (2010 est.) $2,900 (2009 est.) $2,800 (2008 est.) note: data are in 2010 US dollars GDP - composition by sector agriculture: 20.6% industry: 41.1% services: 38.3% (2010 est.)
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Vietnam Economy Profile 2012

Population below poverty line 10.6% (2010 est.) Labor force 47.37 million (2010 est.) Labor force - by occupation agriculture: 53.9% industry: 20.3% services: 25.8% (2009) Unemployment rate 4.4% (2010 est.) 4.6% (2009 est.) Unemployment, youth ages 15-24 total: 4.6% male: 4.4% female: 4.9% (2004) Household income or consumption by percentage share lowest 10%: 3.2% highest 10%: 30.2% (2008) Distribution of family income - Gini index 37.6 (2008) 36.1 (1998) EuroVietnam

Vietnam Economy Profile 2012

Investment (gross fixed) 33.9% of GDP (2010 est.) Budget revenues: $29.23 billion expenditures: $34.95 billion (2010 est.) Taxes and other revenues 28.2% of GDP (2010 est.) Budget surplus (+) or deficit (-) -5.5% of GDP (2010 est.) Public debt 57.1% of GDP (2010 est.) 49.8% of GDP (2009 est.) Inflation rate (consumer prices) 9% (2010 est.) 7% (2009 est.)
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Vietnam Economy Profile 2012

Central bank discount rate 7% (31 December 2010) 8% (31 December 2009 est.) Commercial bank prime lending rate 13.135% (31 December 2010 est.) 10.068% (31 December 2009 est.) Stock of money $25.52 billion (31 December 2008) $27.01 billion (31 December 2007) Stock of narrow money $32.08 billion (31 December 2010 est.) $30.6 billion (31 December 2009 est.) Stock of broad money $127.1 billion (31 December 2010 est.) $103.4 billion (31 December 2009 est.) Stock of quasi money $63.63 billion (31 December 2008) $50.81 billion (31 December 2007) Stock of domestic credit $138 billion (31 December 2010 est.) $110.4 billion (31 December 2009 est.)

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Vietnam Economy Profile 2012

Market value of publicly traded shares $20.39 billion (31 December 2010 est.) $21.2 billion (31 December 2009) $9.589 billion (31 December 2008) Agriculture - products paddy rice, coffee, rubber, cotton, 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, paper Industrial production growth rate 14% (2010 est.)
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Vietnam Economy Profile 2012

Electricity - production 97.3 billion kWh (2010 est.) Electricity - production by source fossil fuel: 43.7% hydro: 56.3% nuclear: 0% other: 0% (2001) Electricity - consumption 85.6 billion kWh (2010 est.) Electricity - exports 535 million kWh (2009 est.) Electricity - imports 3.85 billion kWh (2009 est.)
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Vietnam Economy Profile 2012

Oil - production 343,200 bbl/day (2010 est.) Oil - consumption 320,000 bbl/day (2010 est.) Oil - exports 277,300 bbl/day (2009 est.) Oil - imports 182,300 bbl/day (2010 est.) Oil - proved reserves 600 million bbl (1 January 2011 est.)
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Vietnam Economy Profile 2012

Natural gas - production 9.4 billion cu m (2010 est.) Natural gas - consumption 10.3 billion cu m (2010 est.) Natural gas - exports 0 cu m (2009 est.) Natural gas - imports 905,800 cu m (2010 est.) Natural gas - proved reserves 192.5 billion cu m (1 January 2011 est.)
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Vietnam Economy Profile 2012

Current Account Balance -$12.22 billion (2010 est.) -$6.117 billion (2009 est.) Exports $72.27 billion (2010 est.) $57.1 billion (2009 est.) Exports - commodities clothes, shoes, marine products, crude oil, electronics, wooden products, rice, machinery Exports - partners US 20%, Japan 10.7%, China 9.8%, South Korea 4.3% (2010 est.) Imports $79.95 billion (2010 est.) $65.4 billion (2009 est.) Imports - commodities machinery and equipment, petroleum products, steel products, raw materials for the clothing and shoe industries, electronics, plastics, automobiles Imports - partners China 23.8%, South Korea 11.6%, Japan 10.8%, Taiwan 8.4%, Thailand 6.7%, Singapore 4.9% (2010 est.) EuroVietnam 11

Vietnam Economy Profile 2012

Reserves of foreign exchange and gold $12.93 billion (31 December 2010 est.) $16.8 billion (31 December 2009 est.) Debt - external $32.84 billion (31 December 2010 est.) $28.67 billion (31 December 2009 est.) Stock of direct foreign investment - at home $77.95 billion (31 December 2010 est.) $66.95 billion (31 December 2009 est.) Stock of direct foreign investment - abroad $7.7 billion (31 December 2009 est.) $5.3 billion (31 December 2008) Exchange rates dong (VND) per US dollar 20,500 (2011) 19,148.9 (2010) 17,799.6 (2009) 16,548.3 (2008) 16,119 (2007)
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