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2007 International Monetary Fund

December 2007
IMF Country Report No. 07/386

Vietnam: Statistical Appendix


This Statistical Appendix for Vietnam was prepared by a staff team of the International Monetary
Fund as background documentation for the periodic consultation with the member country. It is based
on the information available at the time it was completed on September 13, 2007. The views
expressed in this document are those of the staff team and do not necessarily reflect the views of the
government of Vietnam or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of
market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be
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Price: $18.00 a copy

International Monetary Fund


Washington, D.C.

INTERNATIONAL MONETARY FUND


VIETNAM
Statistical Appendix
Prepared by Patrizia Tumbarello (APD) and Faisal Ahmed (PDR)
Approved by Asia and Pacific Department
September 13, 2007
Contents

Page

Basic Data ............................................................................................................................3


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

Gross Domestic Product by Expenditure Categories at Current Prices, 200206 ......4


Gross Domestic Product by Sector and Ownership at Current Prices, 200206 .........5
Gross Domestic Product by Sector at Constant Prices, 200206.................................6
Consumer Price Inflation, 200207..............................................................................7
Gross Value of Agricultural Production at Constant Prices, 200206.........................8
Production of Food Staples, 200206 ..........................................................................9
Industrial Crop Production and Livestock, 200206 .................................................10
Gross Value of Industrial Production at Constant Prices, 200206...........................11
Industrial Production by Sector of Ownership at Constant Prices, 200206 .............12
Population and Employment, 200206 ......................................................................13
Total and Nonstate Employment by Sector, 200206................................................14
Employment in the State Sector, 200206 .................................................................15
Summary of General Government Budgetary Operations, 200407 ........................16
Government Revenues, 200407 ...............................................................................17
Government Expenditures, 200407..........................................................................18
Treasury Bill and Bond Issues, 200506....................................................................19
Monetary Survey, 200307 .......................................................................................20
Balance Sheet of State Bank of Vietnam, 200307 ...................................................21
Consolidated Balance Sheet of Deposit Money Banks, 200307 ..............................22
Distribution of Credit, 200207 .................................................................................23
Nominal Interest Rates, 200307 ...............................................................................24
Exchange Rate Developments, 200207....................................................................25
Balance of Payments, 200206 ..................................................................................26
Merchandise Exports by Commodity, 200206.........................................................27
Merchandise Imports by Commodity, 200206.........................................................28

2
26.
27.
28.
29.
30.
31.

Direction of Trade, 200206 ......................................................................................29


Commitments of Foreign Direct Investment, 200206..............................................30
Public Sector Debt, 200306......................................................................................31
External Debt and Debt Service, 200306 .................................................................32
Summary of Normal Tariff Schedule, 200207 .........................................................33
Common Effective Preferential Tariff (CEPT) Rates, 200207 ................................34

Summary of the Tax System..............................................................................................35

3
Vietnam: Basic Data
Nominal GDP (2006): US$60.9 billion
Population (2006): 84.15 million

GDP per capita (2006): US$723


Fund quota: SDR 329.1 million

2002

2003

2004

2005

2006

7.1

7.3

7.8

8.4

8.2

-1.9
31.3
23.9
7.4
33.2
21.5
11.7

-4.9
30.6
23.3
7.3
35.4
20.8
14.7

-3.4
32.0
23.6
8.4
35.5
22.9
12.6

-0.9
34.6
28.0
6.7
35.6
22.3
13.3

-0.3
35.0
27.3
7.7
35.3
23.0
12.3

Inflation (annual percentage change)


Period average
End of period

4.0
4.0

3.2
2.9

7.7
9.7

8.3
8.8

7.5
6.6

GDP deflator

4.0

6.7

8.2

8.2

7.3

-1.4
22.7
6.8
24.2

-1.2
24.9
7.0
26.1

0.9
26.7
7.9
25.8

-1.2
25.9
8.7
27.0

-0.3
27.1
9.7
27.5

3.3
2.4
0.9
1.5
0.0
0.9

5.2
3.2
1.5
1.7
0.0
2.0

3.7
2.4
1.4
1.0
0.0
1.3

4.7
2.7
0.8
0.5
1.4
2.0

3.5
2.1
1.4
0.7
0.0
1.3

-4.7
-11.5

-6.4
-13.5

-2.8
-10.7

-5.9
-14.6

-3.8
-13.5

17.6
22.2
12.4

24.9
28.4
27.4

29.5
41.6
16.1

29.7
31.7
23.7

33.6
25.4
32.2

7.0
9.9
2.4
5.2

6.3
10.0
3.6
7.3

6.7
10.7
-3.0
0.6

7.8
12.0
-0.6
3.2

7.9
11.8
1.1
4.7

-676
-1.9
11.2
22.1

-1,935
-4.9
20.6
28.0

-1,565
-3.4
31.4
26.6

-497
-0.9
22.5
21.2

-164
-0.3
22.7
22.1

3,692
7.2

5,619
8.7

6,314
8.4

8,557
9.4

11,483
10.4

External debt (in percent of GDP) 1/


External debt service due (in percent of exports of GNFS)
Total public and publicly guaranteed debt (in percent of GDP)

35.0
8.6
38.2

33.7
7.8
41.0

33.5
6.0
42.4

32.2
5.6
43.8

30.2
5.3
43.3

Real effective exchange rate (annual percentage change) 2/


Period average
End of period

-1.8
-5.6

-7.8
-9.0

-1.3
1.1

4.3
13.0

3.8
-2.8

535.8
440

613.4
492

715.3
553

839.2
636

973.8
723

Real GDP (annual percentage change)


Saving-investment balance (in percent of GDP)
Gross national saving
Private
Public
Gross investment
Private
Public

General government
Official budget balance
Revenue and grants
of which: oil revenue
Expenditure
Off-budget expenditure and net lending
Net lending
ODA
VDB
Sovereign bond-financed lending to SOEs
Off-budget investment expenditure
Overall fiscal balance including off-budget expenditure
Non-oil overall fiscal deficit
Money and credit (annual percentage change, end of period)
Broad money
Credit to the economy
Reserve money
Interest rates (in percent, end of period)
Nominal three-month deposit rate (households)
Nominal short-term lending rate (less than one year)
Real three-month deposits rate (households)
Real short-term lending rate (less than one year)
Current account balance (including official transfers)
(in millions of U.S. dollars)
(in percent of GDP)
Exports f.o.b (annual percentage change, U.S. dollar terms)
Imports f.o.b. (annual percentage change, U.S. dollar terms)
Foreign exchange reserves (in millions of U.S. dollars, end of period)
Gross official reserves, including gold
(in weeks of next year's imports of GNFS)

Memorandum items:
GDP (in trillions of dong at current market prices)
Per capita GDP (in U.S. dollars)
Sources: Data provided by the authorities; and Fund staff estimates.
1/ It includes private debt.
2/ A positive number indicates an appreciation.

Table 1. Vietnam: Gross Domestic Product by Expenditure Categories at Current Prices, 200206
2002

2003

2004

2005

2006
Est.

(In billions of dong)


Consumption
Private
Government

382,137
348,747
33,390

445,221
406,451
38,770

511,221
465,506
45,715

584,793
533,141
51,652

668,540
611,206
57,334

Investment
Gross capital formation
Change in stocks

177,983
166,828
11,155

217,434
204,608
12,826

253,686
237,868
15,818

298,543
275,841
22,702

347,900
319,020
28,880

Domestic demand

560,120

662,655

764,907

883,336

1,016,440

Net exports
Exports
Imports

-27,684
304,262
331,946

-51,288
363,735
415,023

-54,000
470,216
524,216

-35,088
582,069
617,157

-32,471
715,369
747,840

3,326

2,076

4,400

-9,037

-10,179

535,762

613,443

715,307

839,211

973,790

Statistical discrepancy 1/
GDP

(In percent of GDP)


Consumption
Private
Government

71.3
65.1
6.2

72.6
66.3
6.3

71.5
65.1
6.4

69.7
63.5
6.2

68.7
62.8
5.9

Investment
Gross capital formation
Change in stocks

33.2
31.1
2.1

35.4
33.4
2.1

35.5
33.3
2.2

35.6
32.9
2.7

35.7
32.8
3.0

104.5

108.0

106.9

105.3

104.4

-5.2
56.8
62.0

-8.4
59.3
67.7

-7.5
65.7
73.3

-4.2
69.4
73.5

-3.3
73.5
76.8

0.6

0.3

0.6

-1.1

-1.0

Domestic demand
Net exports
Exports
Imports
Statistical discrepancy 1/

(Annual percentage change)


Consumption
Private
Government

11.5
11.7
9.6

16.5
16.5
16.1

14.8
14.5
17.9

14.4
14.5
13.0

14.3
14.6
11.0

Investment
Gross capital formation

18.6
18.9

22.2
22.6

16.7
16.3

17.7
16.0

16.5
15.7

Domestic demand

13.7

18.3

15.4

15.5

15.1

15.8
21.2

19.5
25.0

29.3
26.3

23.8
17.7

22.9
21.2

11.3

14.5

16.6

17.3

16.0

Exports
Imports
GDP

(Contribution to nominal GDP growth, in percent)


Domestic demand
Private consumption
Fixed capital formation
Change in stocks
Net exports
Statistical discrepancy 1/
GDP

123.9
67.2
48.7
2.6
-30.7
6.8
100.0

132.0
74.3
48.6
2.2
-30.4
-1.6
100.0

100.4
58.0
32.7
2.9
-2.7
2.3
100.0

95.6
54.6
30.6
5.6
15.3
-10.8
100.0

98.9
58.0
32.1
4.6
1.9
-0.8
100.0

Source: General Statistics Office.


1/ Difference between production- and expenditure-based estimates of GDP, the former of which are considered to be more accurate.

5
Table 2. Vietnam: Gross Domestic Product by Sector and Ownership at Current Prices, 200206 1/
2002

2003

2004

2005

2006
Est.

(In billions of dong)


Gross Domestic Product
State
(excluding state management) 2/
Nonstate

535,762
205,652
191,836
330,110

613,443
239,736
223,060
373,707

715,307
279,704
260,643
435,603

839,211
322,241
299,203
516,970

973,790
363,449
336,712
610,341

Agriculture
State
Nonstate

123,383
4,770
118,613

138,285
5,040
127,153

155,993
...
...

175,984
...
...

198,226
...
...

Industry and construction


State
Nonstate

206,197
92,149
114,048

242,126
108,043
133,890

287,616
...
...

344,224
...
...

404,753
...
...

Services
State
(excluding state management) 2/
Nonstate

206,182
108,732
94,916
97,450

233,032
123,582
106,907
107,878

271,698
...
...
...

319,003
...
...
...

370,771
...
...
...

75,617
17,154
21,095
9,763
3,009
24,452
13,816
18,071
7,057
16,148

83,297
18,472
24,725
10,858
3,694
27,287
16,676
21,403
8,865
17,755

96,995
22,529
30,402
12,737
4,315
31,304
19,061
23,335
10,851
20,169

113,768
29,329
36,629
15,072
5,247
33,635
23,038
26,948
12,412
22,925

132,794
35,861
43,825
17,607
6,059
36,814
26,737
30,718
14,093
26,263

Wholesale and retail trade


Hotels and restaurants
Transport, storage and communication
Financial intermediation
Scientific activities and technology
Real estate services
Public administration, defense, and compulsory social security
Education and training
Health and social work
Other services

(In percent of GDP)


State sector
(excluding state management) 2/
Nonstate sector

38.4
35.8
61.6

39.1
36.4
60.9

39.1
36.4
60.9

38.4
35.7
61.6

37.3
34.6
62.7

Agriculture
State
Nonstate

23.0
0.9
22.1

22.5
0.8
20.7

21.8
...
...

21.0
...
...

20.4
...
...

Industry and construction


State
Nonstate

38.5
17.2
21.3

39.5
17.6
21.8

40.2
...
...

41.0
...
...

41.6
...
...

Services
State
(excluding state management) 2/
Nonstate
Wholesale and retail trade
Hotels and restaurants
Transport, storage and communication
Financial intermediation
Scientific activities and technology
Real estate services
Public administration., defense, and compulsory social security
Education and training
Health and social work
Other services

38.5
20.3
17.7
18.2
14.1
3.2
3.9
1.8
0.6
4.6
2.6
3.4
1.3
3.0

38.0
20.1
17.4
17.6
13.6
3.0
4.0
1.8
0.6
4.4
2.7
3.5
1.4
2.9

38.0
...
...
...
13.6
3.1
4.3
1.8
0.6
4.4
2.7
3.3
1.5
2.8

38.0
...
...
...
13.6
3.5
4.4
1.8
0.6
4.0
2.7
3.2
1.5
2.7

38.1
...
...
...
13.6
3.7
4.5
1.8
0.6
3.8
2.7
3.2
1.4
2.7

Source: General Statistics Office.


1/ Data are latest official revisions of historical GDP estimates.
2/ State management includes public administration, defense, and compulsory social security.

6
Table 3. Vietnam: Gross Domestic Product by Sector at Constant Prices, 200206
2002

2003

2004

2005

2006
Est.

(In billions of dong, at 1994 constant prices)


68,352
57,912
2,568
7,872

70,827
59,761
2,589
8,477

73,917
62,107
2,610
9,200

76887
64,072
2,635
10,181

79505
65892
2,665
10948

Industry
Mining and quarrying
Manufacturing
Electricity, gas, and water supply
Construction

117,125
19,396
63,983
7,992
25,755

129,399
20,611
71,363
8,944
28,481

142,621
22,437
79,116
10,015
31,053

157,867
22,854
89,338
11,247
34,428

174239
23037
100396
12574
38232

Services
Wholesale and retail trade
Hotels and restaurants
Transport, storage, and communications
Financial intermediation
Science and technology
Real estate services
State management 1/
Education and training
Health and social work
Other services

127,770
51,245
10,125
12,252
6,424
1,909
13,106
8,768
10,475
4,464
9,002

136,016
54,747
10,646
12,925
6,935
2,044
13,796
9,228
11,260
4,853
9,582

145,897
59,027
11,511
13,975
7,495
2,196
14,396
9,773
12,125
5,234
10,165

158,276
63,950
13,472
15,318
8,197
2,368
14,816
10,477
13,127
5,640
10,911

171391
69418
15145
16870
8867
2543
15252
11270
14231
6082
11713

Gross Domestic Product

313,247

336,242

362,435

393,031

425,135

Agriculture, forestry, and fishery


Agriculture
Forestry
Fishery

(Real GDP, annual percentage change)


4.2
4.1
0.5
5.7

3.6
3.2
0.8
7.7

4.4
3.9
0.8
8.5

4.0
3.2
0.9
10.7

3.4
2.8
1.1
7.5

9.5
1.1
11.6
11.4
10.6

10.5
6.3
11.5
11.9
10.6

10.2
8.9
10.9
12.0
9.0

10.7
1.9
12.9
12.3
10.9

10.4
0.8
12.4
11.8
11.0

Services
Wholesale and retail trade
Hotels and restaurants
Transport, storage, and communications
Financial intermediation
Real estate services
State management 1/
Education and training
Health and social work
Other services

6.5
7.3
7.1
7.1
7.0
3.8
3.9
8.1
7.5
4.8

6.5
6.8
5.1
5.5
8.0
5.3
5.2
7.5
8.7
6.4

7.3
7.8
8.1
8.1
8.1
4.4
5.9
7.7
7.9
6.1

8.5
8.3
17.0
9.6
9.4
2.9
7.2
8.3
7.8
7.3

8.3
8.6
12.4
10.1
8.2
2.9
7.6
8.4
7.8
7.4

Gross Domestic Product

7.1

7.3

7.8

8.4

8.2

Agriculture, forestry, and fishery


Agriculture
Forestry
Fishery

5.9
5.5
6.2
7.5

8.2
6.8
18.6
10.1

8.1
7.7
20.1
4.9

8.5
8.2
5.8
8.4

8.9
9.1
6.0
8.0

Industry
Mining and quarrying
Manufacturing
Electricity, gas, and water supply
Construction

2.6
2.9
3.8
1.9
2.2

6.3
16.9
2.0
9.1
6.3

7.8
16.2
4.6
0.8
10.2

8.1
20.4
5.4
2.7
7.8

6.5
11.5
6.4
3.2
9.0

Services
Wholesale and retail trade
Hotels and restaurants
Transport, storage, and communications
Financial intermediation
Real estate services
State management 1/
Education and training
Health and social work
Other services

4.1
4.0
4.0
1.4
4.2
9.2
4.0
2.9
2.3
3.8

6.2
3.1
2.4
11.1
3.0
6.0
14.7
10.2
15.6
3.3

8.7
8.0
12.8
13.7
8.5
9.9
7.9
1.2
13.5
7.1

8.2
8.3
11.2
9.9
8.2
4.4
12.7
6.7
6.2
5.9

7.3
7.5
8.8
8.6
8.0
6.3
7.9
5.1
5.3
6.7

Gross Domestic Product

4.0

6.7

8.2

8.2

7.3

Agriculture, forestry, and fishery


Agriculture
Forestry
Fishery
Industry
Mining and quarrying
Manufacturing
Electricity, gas, and water supply
Construction

(GDP deflator, annual percentage change)

Sources: General Statistics Office; and Fund staff estimates.


1/ State management includes public administration, defense, and compulsory social security.

7
Table 4. Vietnam: Consumer Price Inflation, 200207 1/
(Index, 2001=100, unless otherwise indicated)
Overall index

Food

Staples Other Food

Inflation 2/
Weight (in percent)

Nonfood
Drinks &
Tobacco

Clothes,
Footwear

Household
Goods

Housing,
Construction

Transport,
Post,
Telecom.

100.0

13.1

29.6

4.5

7.6

9.2

8.2

10.1

2002 January
February
March
April
May
June
July
August
September
October
November
December
Average

1.6
3.4
3.3
3.9
4.4
4.5
4.5
4.6
4.3
4.7
4.8
4.0
4.0

102.1
104.4
103.6
103.6
103.9
104.0
103.9
104.0
104.2
104.5
104.8
105.1
104.0

112.8
115.9
114.6
112.5
112.0
109.2
107.6
107.5
108.2
108.4
109.6
111.3
110.8

101.3
106.0
105.2
106.1
107.5
109.0
109.1
109.1
109.2
108.8
108.2
108.0
107.3

100.1
101.5
100.7
100.5
100.9
101.0
101.2
101.4
101.7
102.3
102.6
103.3
101.4

100.8
101.3
101.0
100.9
100.7
100.7
100.6
100.7
101.1
101.1
101.2
101.3
101.0

100.6
100.9
100.6
100.7
100.7
100.7
100.7
100.8
100.9
100.8
100.8
101.0
100.8

100.4
100.6
100.4
100.3
100.6
101.1
101.3
101.5
101.9
105.1
107.1
107.6
102.3

96.8
97.8
96.9
96.8
96.7
96.7
96.7
96.8
96.8
97.8
98.4
98.4
97.2

2003 January
February
March
April
May
June
July
August
September
October
November
December
Average

3.8
3.8
3.9
3.8
3.6
3.2
3.0
2.8
2.7
2.1
2.4
2.9
3.2

106.1
108.4
107.7
107.7
107.6
107.3
107.0
106.9
107.0
106.7
107.3
108.2
107.3

113.1
114.5
113.4
112.8
111.8
110.0
108.6
108.8
108.8
109.3
112.4
114.6
111.5

109.4
114.2
111.5
111.2
111.1
111.0
110.7
110.3
110.0
109.7
110.0
111.0
110.9

104.3
106.6
105.9
105.7
105.5
105.5
105.5
105.6
105.7
106.0
106.3
107.0
105.8

102.2
102.8
102.6
103.0
103.5
103.5
103.5
103.5
103.7
103.7
104.2
104.7
103.4

101.3
101.5
101.7
101.8
102.0
102.1
102.1
101.8
101.8
102.2
102.7
103.1
102.0

108.3
108.8
110.9
111.3
110.8
110.3
110.5
110.8
110.9
111.1
111.7
112.3
110.6

98.7
100.0
100.7
100.5
100.3
100.2
100.1
100.0
100.0
95.0
94.6
94.7
98.8

2004 January
February
March
April
May
June
July
August
September
October
November
December
Average

3.1
3.9
5.4
5.9
7.0
8.1
9.1
9.9
10.1
10.4
10.0
9.7
7.7

109.4
112.6
113.5
114.1
115.1
116.1
116.8
117.5
117.8
117.8
118.0
118.6
115.6

117.0
118.8
122.1
124.3
127.1
127.8
126.9
127.9
128.3
128.0
128.9
130.2
125.6

112.8
120.5
122.0
122.8
125.0
127.2
128.5
129.5
130.2
129.9
129.5
130.2
125.7

110.1
110.7
108.9
109.2
109.6
109.6
109.7
110.2
110.2
110.4
110.4
110.7
110.0

106.0
106.3
106.8
107.6
107.5
107.6
107.8
108.2
108.7
108.9
109.1
109.8
107.9

103.7
104.4
104.1
104.6
104.7
104.8
105.1
105.5
105.9
106.2
106.3
106.8
105.2

113.2
114.7
117.1
117.6
117.8
117.6
118.3
119.0
119.5
119.8
120.4
120.9
118.0

94.7
95.3
95.2
95.3
95.5
95.5
98.3
98.3
98.5
98.5
99.6
100.0
97.1

2005 January
February
March
April
May
June
July
August
September
October
November
December 3/
Average

9.7
9.1
8.3
8.4
8.0
7.6
7.4
7.2
7.7
8.2
8.5
8.8
8.3

119.9
122.9
123.0
123.7
124.4
124.8
125.4
125.9
126.9
127.5
128.0
129.1
125.1

132.0
135.3
136.7
137.4
137.7
136.9
136.1
136.1
136.5
137.3
138.8
140.5
136.8

132.7
138.4
138.4
139.2
140.3
141.5
141.8
142.3
142.9
143.4
143.5
145.9
140.9

111.6
113.4
113.2
113.4
114.4
114.2
114.4
114.8
114.8
115.3
115.6
116.1
114.3

110.6
111.1
110.8
111.1
111.5
111.8
112.1
112.8
113.5
114.0
114.5
115.2
112.4

107.7
108.1
108.3
108.7
109.0
109.4
109.7
110.3
110.6
111.1
111.4
112.0
109.7

121.3
121.8
122.2
123.6
124.6
124.6
126.7
127.4
129.6
131.0
131.9
132.7
126.5

100.3
101.1
100.9
102.4
102.8
102.9
105.0
106.0
110.1
110.4
110.6
109.4
105.2

2006 January
February
March
April
May
June
July
August
September
October
November
December
Average

8.9
8.5
7.9
7.4
7.5
7.6
7.5
7.5
6.9
6.7
6.9
6.6
7.5

130.6
133.4
132.7
132.9
133.8
134.3
134.8
135.3
135.7
136.0
136.9
137.6
143.3

143.5
146.0
146.2
146.6
147.1
147.4
148.0
148.4
149.0
151.0
156.6
160.4
168.3

148.0
153.6
151.8
152.1
152.2
152.8
153.6
153.7
152.7
153.0
153.7
153.9
163.2

117.5
119.2
118.7
118.7
119.2
119.5
120.3
120.5
120.9
121.3
122.3
122.2
126.5

116.3
117.3
117.6
117.8
118.3
118.8
119.1
119.7
120.5
121.0
121.0
121.9
125.4

112.6
113.3
113.7
114.2
114.8
115.6
116.0
116.3
116.8
117.4
118.2
119.0
121.9

133.8
134.8
135.0
134.6
135.8
137.2
138.2
139.7
140.9
140.1
139.9
140.6
149.8

109.5
110.4
109.7
109.8
113.0
113.1
113.3
114.4
116.2
114.2
113.6
113.7
115.9

2007 January
February
March
April
May
June
July
August
Average

6.5
6.5
6.8
7.2
7.3
7.8
8.4
8.6
7.4

139.0
142.0
141.7
142.4
143.5
144.7
146.1
146.9
143.3

163.3
167.8
167.7
167.6
168.6
169.3
170.2
171.7
168.3

155.3
161.2
160.2
161.3
162.9
165.2
169.0
170.6
163.2

124.2
127.3
126.4
126.2
126.4
126.6
127.0
127.6
126.5

123.1
124.7
124.4
125.0
125.6
126.2
126.8
127.3
125.4

119.6
120.9
121.0
121.6
122.3
122.8
123.4
123.7
121.9

144.9
147.6
147.5
148.9
150.2
152.2
153.3
153.5
149.8

113.8
113.9
114.5
115.7
116.4
117.4
117.6
117.8
115.9

Sources: General Statistics Office (GSO); and Fund staff estimates.


1/ Beginning in May 2006, the weights and composition of the basket were changed. Earlier data have been re-weighted based on the new CPI weights.
2/ Year-on-year percentage change.
3/ Staff estimate of overall rate of inflation as of December 2005 (8.8 percent) differs from GSO estimate (8.4 percent) owing to GSO's utilization of rounding function.

8
Table 5. Vietnam: Gross Value of Agricultural Production at Constant Prices, 200206
2002

2003

2004

2005

2006
Est.

(In billions of dong, at constant 1994 prices)


Total
Food crops
Paddy and other cereals
Vegetables and beans
Fruits
Other
Industrial crops
Animal husbandry

119,260

124,693

129,861

134,007

138,824

75,814
59,619
7,771
6,895
1,529
22,247
21,200

77,611
61,029
8,030
7,017
1,535
24,175
22,907

80,810
63,621
8,284
7,355
1,551
25,612
23,439

82,313
63,853
8,928
7,943
1,589
25,586
26,108

83,244
64,193
9,401
8,037
1,613
27,578
28,002

(In percent of total production)


Food crops
Paddy and other cereals
Vegetables and beans
Fruits
Other
Industrial crops
Animal husbandry

63.6
50.0
6.5
5.8
1.3
18.7
17.8

62.2
48.9
6.4
5.6
1.2
19.4
18.4

62.2
49.0
6.4
5.7
1.2
19.7
18.0

61.4
47.6
6.7
5.9
1.2
19.1
19.5

60.0
46.2
6.8
5.8
1.2
19.9
20.2

3.2
1.9
0.4
7.8
8.0
2.5
-0.1
11.4

3.6
1.1
0.5
5.3
1.2
1.5
7.8
7.3

(Annual percentage change)


Total
Food crops
Paddy and other cereals
Vegetables and beans
Fruits
Other
Industrial crops
Animal husbandry
Source: General Statistics Office.

6.3
8.6
8.3
13.5
7.7
2.9
-3.7
9.9

4.6
2.4
2.4
3.3
1.8
0.4
8.7
8.1

4.1
4.1
4.2
3.2
4.8
1.0
5.9
2.3

9
Table 6. Vietnam: Production of Food Staples, 200206
2002

2003

36,961

37,707

34,447
16,720
9,189
8,539
8,653
2,511
1,704
4,438
14,082
22,879

2004

2005

2006
Est.

39,581

39,622

39,648

34,569
16,823
9,401
8,345
10,022
3,136
1,577
5,309

36,149
17,078
10,431
8,640
10,764
3,431
1,512
5,821

35,833
17,332
10,436
8,065
11,946
3,787
1,443
6,716

35,827
17,531
9,715
8,582
12,988
3,819
1,455
7,714

14,234
23,473

15,000
24,581

14,355
25,267

15,024
24,624

0.1
-0.9
1.5
0.0
-6.7
11.0
10.4
-4.6
15.4

0.1
0.0
1.1
-6.9
6.4
8.7
0.8
0.8
14.9

(In thousands of tons)


Total production (of cereals)
By product
Rice paddy
Spring crop
Autumn crop
Winter crop
Other staples (gross output)
Maize
Sweet potato
Cassava
By region
North
South

(Annual percentage change)


Total production
Rice paddy
Spring crop
Autumn crop
Winter crop
Other staples
Maize
Sweet potato
Cassava

7.8
7.3
8.0
10.3
2.8
18.1
16.2
3.0
26.5

2.0
0.4
0.6
2.3
-2.3
15.8
24.9
-7.4
19.6

5.0
4.6
1.5
11.0
3.5
7.4
9.4
-4.1
9.6

(In thousands of hectares)


Total area cultivated
By product
Rice paddy
Spring crop
Autumn crop
Winter crop
Other staples
Maize
Sweet potato
Cassava
By region
North
South
Yield
By product
Rice paddy
Spring crop
Autumn crop
Winter crop
Other staples
Maize
Sweet potato
Cassava
By region
North
South
Per capita production
Total staples (in metric tons per capita)
Rice
Other staples (maize)
(in percent of total staples production)
Total staples (1994 = 100)
Rice
Other staples (maize)
Total staples (annual percentage change)
Rice
Other staples (maize)

8,323

8,367

8,438

8,383

8,358

7,504
3,033
2,294
2,178
1,391
816
238
337

7,452
3,023
2,320
2,109
1,505
913
220
372

7,445
2,979
2,366
2,101
1,582
991
202
389

7,329
2,942
2,349
2,038
1,664
1,053
185
426

7,324
2,989
2,323
2,013
1,689
1,032
182
475

3,077
5,245

3,110
5,256

3,136
5,302

3,132
5,251

3,120
5,238

(In metric tons per hectare)


4.6
5.5
4.0
3.9
6.2
3.1
7.2
13.2

4.6
5.6
4.1
4.0
6.7
3.4
7.2
14.3

4.9
5.7
4.4
4.1
6.8
3.5
7.5
15.0

4.9
5.9
4.4
4.0
7.2
3.6
7.8
15.8

4.9
5.9
4.2
4.3
7.7
3.7
8.0
16.2

4.6
4.4

4.6
4.5

4.8
4.6

4.6
4.8

4.8
4.7

0.5
0.4
0.0
6.8
149.8
146.4
219.5
7.8
7.3
16.2

0.5
0.4
0.0
8.3
152.8
146.9
274.2
2.0
0.4
24.9

0.5
0.4
0.0
8.7
160.4
153.6
299.9
5.0
4.6
9.4

0.5
0.4
0.0
9.6
160.6
152.3
331.1
0.1
-0.9
10.4

0.5
0.4
0.0
9.6
160.7
152.3
333.9
0.1
0.0
0.8

Sources: Ministry of Agriculture; General Statistics Office; and Fund staff estimates.

10
Table 7. Vietnam: Industrial Crop Production and Livestock, 200206
2002

2003

2004

2005

2006
Est.

(In thousands of metric tons)


Production of annual crops
Cotton
Jute
Rush
Sugarcane
Peanuts
Soybeans
Tobacco
Production of perennial crops
Tea
Coffee
Rubber
Coconut
Pepper

40
20
88
17,120
400
206
33

35
12
96
16,855
406
220
32

28
13
90
15,649
469
246
23

34
13
81
14,949
489
293
26

26
11
93
15,679
465
258
43

424
700
298
915
47

449
794
364
893
69

514
836
419
960
73

570
752
482
977
80

612
854
546
982
83

21.4
0.0
-10.0
-4.5
4.3
19.1
13.0
10.9
-10.0
15.0

-23.5
-15.4
14.8
4.9
-4.9
-11.9
65.4
7.4
13.6
13.3

(Annual percentage change)


Cotton
Jute
Rush
Sugarcane
Peanuts
Soybeans
Tobacco
Tea
Coffee
Rubber

18.8
39.7
36.6
16.8
10.3
18.4
3.8
24.7
-16.8
-4.6

-11.8
-41.2
9.0
-1.5
1.4
7.0
-3.6
5.9
13.5
22.1

-20.5
8.3
-6.3
-7.2
15.5
11.8
-28.1
14.5
5.3
15.1

(In thousands of hectares)


Area cultivated of annual crops
Of which:
Cotton
Jute
Rush
Mulberry
Sugarcane
Peanuts
Soybeans
Tobacco
Area cultivated of perennial crops
Of which:
Tea
Coffee
Rubber
Coconut
Pepper

846

835

857

862

843

34
10
12

28
5
14

28
5
13

26
6
13

21
6
13

320
247
159
27
1,492

313
244
166
23
1,511

286
264
184
16
1,554

266
270
204
17
1,634

285
250
186
27
1,658

109
522
429
140
48

116
510
441
134
51

121
497
454
133
51.0

123
497
483
132
49

123
489
512
133
49

(In output per hectare, in metric tons)


Cotton
Jute
Rush
Sugarcane
Peanut
Soybeans
Tobacco
Tea
Coffee
Rubber

1.2
2.1
7.2
53.5
1.6
1.3
1.2
3.9
1.3
0.7

1.3
2.5
6.9
53.8
1.7
1.3
1.4
3.9
1.6
0.8

1.0
2.8
7.1
54.7
1.8
1.3
1.4
4.2
1.7
0.9

1.3
2.2
6.2
56.2
1.8
1.4
1.5
4.6
1.5
1.0

1.2
1.8
7.2
55.0
1.9
1.4
1.6
5.0
1.7
1.1

2.9
5.5
27.4
219.9

2.9
6.5
26.9
214.6

(In millions of heads)


Livestock
Buffalo
Cattle
Pigs (over two months old)
Poultry

2.8
4.1
23.2
233.3

2.8
4.4
24.9
254.6

Sources: Ministry of Agriculture and Forestry; and General Statistics Office.

2.9
4.9
26.1
218.2

11
Table 8. Vietnam: Gross Value of Industrial Production at Constant Prices, 200206 1/
2002

2003

2004

2005

2006
Est.

(In trillions of dong, at constant 1994 prices)


Mining
Coal
Oil and gas
Metal ores
Stone and other mining
Manufacturing
Food and beverages
Cigarettes and tobacco
Textiles and garments
Textile
Garments
Leather tanning and processing
Wood and paper products
Wood products
Paper
Printing, copying, publishing
Chemical and petroleum products
Coke and petroleum
Chemicals
Rubber and plastics
Nonmetallic products
Metal products
Metallic products
Products made of metal
Machinery and equipment
Computer and office equipment
Other machinery and equipment
Electric and electronic products
Radio, TV, telecommunication equipment
Medical instruments
Other electric and electronic products
Vehicles and transport equipment
Assembling and repairing of motor vehicles
Transport equipment
Furniture and other
Furniture
Other
Electricity, gas, and water
Electricity and gas
Water supply
Total

30.3
3.2
23.8
0.3
3.0
213.6
56.1
7.7
20.5
12.3
8.2
11.1
9.4
4.5
4.9
2.9
15.0
0.3
14.7
9.7
25.9
17.0
8.5
8.5
4.7
1.0
3.7
13.2
6.2
0.5
6.5
14.3
5.8
8.5
6.1
6.1
0.2
17.0
15.7
1.3
261.1

32.8
3.7
25.1
0.3
3.6
252.9
64.6
9.2
24.7
14.2
10.5
13.5
11.1
5.5
5.7
3.5
16.6
0.3
16.3
11.3
29.9
21.1
10.4
10.6
6.2
1.5
4.6
15.2
7.2
0.6
7.5
18.0
8.3
9.7
8.0
7.8
0.2
19.4
18.1
1.4
305.1

37.5
4.8
28.4
0.5
3.8
296.3
74.7
10.2
29.4
16.6
12.8
16.0
13.7
6.6
7.1
3.8
19.5
0.4
19.0
15.2
33.5
24.2
11.2
13.0
7.2
1.8
5.4
17.7
8.0
0.7
9.1
20.9
8.7
12.2
10.4
10.2
0.3
21.9
20.4
1.5
355.6

38.4
6.1
27.4
0.5
4.4
353.2
86.5
11.2
34.4
19.1
15.3
18.9
16.4
8.1
8.3
4.6
24.4
0.6
23.8
18.2
37.1
31.5
13.9
17.6
8.7
3.2
5.5
21.9
9.1
0.8
12.0
25.6
9.8
15.8
13.7
13.4
0.3
25.0
23.4
1.6
416.6

38.8
7.8
25.8
0.4
4.9
420.1
99.5
12.3
40.7
22.2
18.5
22.2
19.7
10.3
9.4
5.9
29.2
0.8
28.4
21.9
41.7
39.1
16.9
22.2
10.3
4.6
5.7
27.0
10.6
0.8
15.6
32.1
12.0
20.1
18.5
18.2
0.3
28.5
26.8
1.7
487.5

2.5
-3.5
19.2
15.8
16.9
30.2
24.1
22.7
14.4
17.2

1.0
-5.8
18.9
15.0
18.3
24.1
23.1
25.4
13.9
17.0

(Annual percentage change)


Mining
Oil and gas
Manufacturing
Food and beverages
Textiles and garments
Metal products
Electric and electronic products
Vehicles and transport equipment
Electricity, gas, and water
Total

4.2
0.1
16.4
11.3
17.0
22.5
19.6
26.3
15.4
14.7

8.1
5.6
18.4
15.2
20.5
23.8
15.2
25.4
14.1
16.9

14.4
13.0
17.2
15.7
19.2
14.8
16.3
16.0
12.5
16.6

Source: General Statistics Office.


1/ Due to reclassification of industrial activities, previously published industrial sector data are not comparable with the data in this table.

12
Table 9. Vietnam: Industrial Production by Sector of Ownership at Constant Prices, 200206 1/
2002

2003

2004

2005

2006
Est.

(In billions of dong, at constant 1994 prices)


Total industrial production

261,092

305,080

355,624

State sector

105,119

117,637

131,655

141,125

154,230

69,640
35,479
63,474
1,668
34,173
27,633
92,499
23,817
68,682

80,917
36,720
78,292
1,770
46,422
30,101
109,152
25,132
84,020

92,896
38,759
95,785
1,893
60,811
33,081
128,184
28,403
99,781

104,371
36,754
120,127
1,969
79,901
38,257
155,319
27,400
127,919

116,750
37,480
148,783
2,032
103,017
43,734
184,479
25,800
158,679

Central
Local
Nonstate sector
Cooperatives
Private and mixed
Household
Foreign invested sector
Of which: oil and gas
(excluding oil and gas)

416,571

487,492

(In percent of total industrial production)


State sector
Central
Local
Nonstate sector
Cooperatives
Private and mixed
Household

40.3
26.7
13.6
24.3
0.6
13.1
10.6

38.6
26.5
12.0
25.7
0.6
15.2
9.9

37.0
26.1
10.9
26.9
0.5
17.1
9.3

33.9
25.1
8.8
28.8
0.5
19.2
9.2

31.6
23.9
7.7
30.5
0.4
21.1
9.0

Foreign invested sector


(excluding oil and gas)

35.4
26.3

35.8
27.5

36.0
28.1

37.3
30.7

37.8
32.6

(Annual percentage change)


Total industrial production
State sector
Central
Local
Nonstate sector

14.8
12.5
12.1
13.3
18.3

16.8
11.9
16.2
3.5
23.3

16.6
11.9
14.8
5.6
22.3

17.1
7.2
12.4
-5.2
25.4

17.0
9.3
11.9
2.0
23.9

Cooperatives
Private and mixed
Household
Foreign invested sector
(excluding oil and gas)

5.9
26.0
10.7
15.2
21.6

6.1
35.8
8.9
18.0
22.3

7.0
31.0
9.9
17.4
18.8

4.0
31.4
15.6
21.2
28.2

3.2
28.9
14.3
18.8
24.0

Sources: General Statistics Office; and Fund staff estimates.


1/ Due to reclassification of industrial activities, previously published industrial sector data are not comparable with the data in this table.

13
Table 10. Vietnam: Population and Employment, 200206
2002

2003

2004

2005

2006
Est.

(In thousands of persons, unless otherwise indicated)


Total population
(annual percentage change)
Urban
(annual percentage change)
Rural
(annual percentage change)

79,727
1.3
20,022
2.8
59,705
0.8

80,902

82,032

1.5
20,869
4.2
60,033
0.5

1.4
21,737
4.2
60,295
0.4

Total employment
Unemployment rate 1/

39,508
6.0

40,574
5.8

41,586
5.6

83,106
1.3
22,337
2.8
60,770
0.8

84,156
1.3
22,824
2.2
61,332
0.9

42,527
5.3

43,347
4.5

26.9
73.1
49.1
50.9
27.1
63.9
9.0
51.2

27.1
72.9
49.1
50.9
26.3
64.5
9.2
51.5

42,527
38,488
4,039
1,613
2,426

43,347
39,339
4,008
1,572
2,436

90.5
9.5
3.8
5.7

90.8
9.2
3.6
5.6

2.3
2.7
-1.7
-3.9
-0.2

1.9
2.2
-0.8
-2.5
0.4

(In percent of total population)


Urban 2/
Rural 2/
Male
Female
Age under 15
Age 15-59
Age 60 and over
Total employment

25.1
74.9
49.2
50.8
30.3
61.1
8.7
49.6

25.8
74.2
49.1
50.9
29.3
61.9
8.8
50.2

26.5
73.5
49.1
50.9
28.0
63.0
9.0
50.7

(In thousands of persons)


Total employment
Nonstate sector
State sector 3/
Central
Local

39,508
35,757
3,751
1,569
2,181

40,574
36,538
4,035
1,628
2,407

41,586
37,478
4,108
1,678
2,430

(In percent of total employment)


Nonstate sector
State sector
Central
Local

90.5
9.5
4.0
5.5

90.1
9.9
4.0
5.9

90.1
9.9
4.0
5.8

(Annual percentage change)


Total employment
Nonstate sector
State sector
Central
Local

2.5
2.3
4.1
4.7
3.6

2.7
2.2
7.6
3.8
10.3

2.5
2.6
1.8
3.0
1.0

Sources: General Statistics Office; Ministry of Labour, Invalids, and Social Affairs (MOLISA); and Fund staff estimates.
1/ For labor force in urban area comprising males 15 to 59 years old and females 15 to 54 years old.
2/ Armed forces and some other special groups are excluded from urban/rural categories.
3/ As reported by GSO.

14
Table 11. Vietnam: Total and Nonstate Employment by Sector, 200206
2002

2003

39,508

40,574

Agriculture, fisheries, and forestry


Industry and construction
Industry 1/
Construction
Trade, transport, and communications
Trade
Transport and communications
Education, culture, health
Other 2/

24,456
6,085
4,558
1,526
5,464
4,281
1,183
1,497
2,006

24,443
6,671
4,982
1,688
5,726
4,532
1,194
1,584
2,149

Total employment
Agriculture, fisheries, and forestry
Industry and construction
Trade, transport, and communications
Education, culture, health
Other 2/

2.5
-0.1
9.6
4.2
5.7
6.5

1. State and nonstate employment


Total employment

2004

2005

2006
Est.

41,586

42,527

43,347

24,431
7,217
5,294
1,923
5,969
4,767
1,202
1,657
2,313

24,342
7,782
5,601
2,181
6,196
4,992
1,204
1,726
2,480

24,123
8,280
5,841
2,439
6,463
5,251
1,212
1,806
2,675

2.3
-0.4
7.8
3.8
4.1
7.2

1.9
-0.9
6.4
4.3
4.6
7.9

57.2
18.3
14.6
4.1
5.8

55.7
19.1
14.9
4.2
6.2

(In thousands of persons)

(Annual percentage change)


2.7
-0.1
9.6
4.8
5.8
7.2

2.5
-0.1
8.2
4.2
4.6
7.6

(In percent of total employment)


Agriculture, fisheries, and forestry
Industry and construction
Trade, transport, and communications
Education, culture, health
Other 2/

61.9
15.4
13.8
3.8
5.1

60.2
16.4
14.1
3.9
5.3

58.7
17.4
14.4
4.0
5.6

(In thousands of dong at 1994 prices)


Total output per worker
Agriculture, fisheries, and forestry
Industry and construction
Trade, transport, and communications
Other 2/

7,929
2,913
19,249
11,621
18,347

8,287
3,013
19,399
11,818
18,306

Total output per worker


Agriculture, fisheries, and forestry
Industry and construction
Trade, transport, and communications

4.5
12.3
-0.1
2.9

4.5
3.4
0.8
1.7

Total nonstate employment


Agriculture, fisheries, and forestry
Industry and construction
Industry 1/
Construction
Trade, transport, and communications
Trade
Transport and communications
Education, culture, health
Other 2/

35,757
24,233
4,698
3,651
1,047
5,070
4,087
983
258
1,498

36,538
24,216
5,198
4,050
1,148
5,374
4,372
1,002
292
1,459

Total nonstate employment


Agriculture, fisheries, and forestry
Industry and construction
Trade, transport, and communications
Education, culture, health
Other 2/

2.3
0.0
10.5
4.5
1.6
10.3

Agriculture, fisheries, and forestry


Industry and construction
Trade, transport, and communications
Education, culture, health
Other 2/

67.8
13.1
14.2
0.7
4.2

8,707
3,001
19,760
12,282
18,355

9,242
3,159
20,285
12,793
24,293

9,808
3,296
21,043
13,350
24,221

6.1
5.3
2.7
4.2

6.1
4.3
3.7
4.4

38,488
24,131
6,438
4,755
1,683
5,874
4,869
1,005
336
1,709

39,339
23,915
6,976
4,979
1,997
6,153
5,143
1,010
392
1,903

2.7
-0.3
11.9
4.5
5.1
8.8

2.2
-0.9
8.4
4.7
16.5
11.3

(Annual percentage change)

2. Nonstate employment 3/

5.1
-0.4
1.9
3.9

(In thousands of persons)


37,478
24,210
5,755
4,364
1,391
5,621
4,616
1,005
320
1,571

(Annual percentage change)


2.2
-0.1
10.6
6.0
13.0
-2.6

2.6
0.0
10.7
4.6
9.6
7.7

(In percent of total nonstate employment)


66.3
14.2
14.7
0.8
4.0

64.6
15.4
15.0
0.9
4.2

62.7
16.7
15.3
0.9
4.4

Sources: General Statistics Office; and Ministry of Labor, Invalids and Social Affairs (MOLISA); and Fund staff estimates.
1/ Includes mining and quarrying and electricity, gas, and water supply.
2/ Includes unclassified workers.
3/ Employment outside central and local government and state-owned enterprises.

60.8
17.7
15.6
1.0
4.8

15
Table 12. Vietnam: Employment in the State Sector, 200206
2002

2003

2004

2005

2006
Est.

(In thousands of persons)


Total employment
Agriculture, forestry and fisheries
Industry and construction
Industry
Construction
Trade, transport, and communications
Trade
Transport and communications
Education, health, science, and arts
Education
Science
Culture, arts, and sport
Public health
Other

3,751
223
1,387
908
479
394
194
200
1,239
971
34
37
197
508

4,035
227
1,473
933
540
353
161
192
1,292
1,018
29
39
206
691

4,108
221
1,461
930
532
348
151
197
1,338
1,050
29
40
218
741

4,039
212
1,345
846
498
322
123
199
1,390
1,090
36
40
224
771

4,008
207
1,304
862
442
311
109
202
1,414
1,115
26
44
229
772

(In percent of total state sector employment)


Agriculture and forestry
Industry and construction
Trade, transport, and communications
Education, health, science, and arts
Other

5.9
37.0
10.5
33.0
13.5

Total employment
Agriculture and forestry
Industry and construction
Industry
Construction
Trade, transport, and communications
Trade
Transport
Education, health, science, and arts
Science
Education
Culture, arts, and sport
Public health
Other

4.1
-0.8
6.6
4.2
11.6
0.7
2.1
-0.5
3.7
1.5
3.7
3.9
3.8
3.1

5.6
36.5
8.7
32.0
17.1

5.4
35.6
8.5
32.6
18.0

5.2
33.3
8.0
34.4
19.1

5.2
32.5
7.8
35.3
19.3

(Annual percentage change)


7.6
1.8
6.2
2.8
12.7
-10.5
-17.1
-4.1
4.3
-14.5
4.9
3.7
4.7
36.1

1.8
-2.8
-0.8
-0.4
-1.6
-1.4
-5.9
2.4
3.5
1.0
3.2
2.3
5.9
7.3

-1.7
-4.1
-8.0
-9.0
-6.2
-7.3
-18.5
1.3
3.9
22.9
3.8
0.8
2.7
4.0

-0.8
-2.0
-3.0
1.8
-11.4
-3.6
-11.7
1.4
1.8
-28.9
2.3
11.0
2.2
0.2

(In thousands of dong per month)


Average nominal wage 1/
Industry
Construction
Agriculture, forestry
Transportation
Trade
Education
Science
Culture, arts, and sports
Public health
State management
Financial intermediation

1,069
1703
1,104
740
1,910
1,127
783
895
815
797
691
1,935

1,247
1925
1,261
988
2,278
1,323
1,016
1,051
994
950
797
2,321

1,421
1,867
1,361
1,250
2,433
1,468
1,115
1,165
1,082
1,024
898
2,791

1,651
2,198
1,960
1,031
2,345
1,653
1,293
1,597
1,321
1,228
1,093
2,746

(Annual percentage change)


16.6
14.0
16.2
13.0
-3.0
17.7
14.2
7.9
44.0
33.4
26.6
-17.5
19.2
6.8
-3.6
17.3
11.0
12.6
29.6
9.7
16.0
17.3
10.8
37.1
22.0
8.9
22.1
19.3
7.8
20.0
15.3
12.7
21.7
20.0
20.2
-1.6

Average nominal wage growth


Industry
Construction
Agriculture
Transportation
Trade
Science
Education
Culture, arts, and sports
Public health
State management
Financial intermediation

12.0
10.0
14.9
25.5
14.6
17.2
15.1
8.0
13.4
9.8
5.0
7.2

Average real wage growth 2/


Industry
Construction
Agriculture
Transportation
Trade
Education
Science
Culture, arts, and sports
Public health
State management
Financial intermediation

7.7
5.8
10.4
20.7
10.2
12.7
3.9
10.6
9.1
5.6
0.9
3.1

13.1
9.6
10.7
29.3
15.6
13.7
25.6
13.7
18.3
15.6
11.8
16.3

5.8
-10.0
0.2
17.5
-0.8
3.0
1.9
2.9
1.1
0.1
4.6
11.6

7.3
8.7
33.0
-23.8
-11.0
4.0
7.1
26.6
12.7
10.8
12.4
-9.2

4.0

3.2

7.7

8.3

7.5

Consumer price inflation


Sources: General Statistics Office; and Fund staff estimates.

1/ Cash income, including payments in kind, bonus payments, and social security contributions.
2/ Nominal wage growth deflated by consumer price inflation.

16
Table 13. Vietnam: Summary of General Government Budgetary Operations, 2004-07
2004

2005

2006

2007

Est

Budget 1/

(In trillions of dong)


Total revenue and grants
Oil revenues 2/
Nonoil revenue
Tax revenue
Nontax revenue
Grants

191.3
56.9
131.6
97.6
34.0
2.9

217.1
73.4
141.4
113.4
28.0
2.3

264.3
94.5
166.1
134.6
31.5
3.6

281.9
88.7
190.2
161.0
29.2
3.0

Total expenditure
Current Expenditure 3/
Wages and salaries 4/
Interest payments
Other current expenditure
Capital Expenditure

184.8
121.2
34.5
7.2
79.5
63.6

226.9
155.0
65.0
7.0
83.0
72.0

267.6
181.5
76.1
8.9
96.5
86.1

320.7
221.3
87.1
11.7
122.4
99.5

6.5

-9.9

-3.3

-38.8

26.6

39.4

33.7

50.5

-20.0

-49.3

-37.0

-89.3

20.0
6.7
13.3

49.3
27.4
21.8

37.0
17.5
19.5

89.3
62.4
26.9

Official budget balance (authorities' definition)


Off-budget expenditure and net lending 5/
Overall fiscal balance (IMF definition)
Financing
Domestic (net)
Foreign (net)

(In percent of GDP)


Total revenue and grants
Oil revenues 2/
Nonoil revenue
Tax revenue
Nontax revenue
Grants

26.7
7.9
18.4
13.6
4.8
0.4

25.9
8.7
16.8
13.5
3.3
0.3

27.1
9.7
17.1
13.8
3.2
0.4

24.9
7.8
16.8
14.3
2.6
0.3

Total expenditure
Current Expenditure 3/
Wages and salaries 4/
Interest payments
Other current expenditure
Capital Expenditure

25.8
16.9
4.8
1.0
11.1
8.9

27.0
18.5
7.7
0.8
9.9
8.6

27.5
18.6
7.8
0.9
9.9
8.8

28.4
19.6
7.7
1.0
10.8
8.8

Official budget balance (authorities' definition)

0.9

-1.2

-0.3

-3.4

Off-budget expenditure and net lending 5/

3.7

4.7

3.5

4.5

-2.8

-5.9

-3.8

-7.9

2.8
0.9
1.9

5.9
3.3
2.6

3.8
1.8
2.0

7.9
5.5
2.4

Overall fiscal balance (IMF definition)


Financing
Domestic (net)
Foreign (net)
Sources: Ministry of Finance: and Fund staff estimates and projections.

1/ Budget refers to the 2007 budget approved by the National Assembly, with projected oil revenues based on an oil price of US$62 and
the contigency included in expenditure.
2/ Staff estimates. Includes revenue from crude oil as well as import and domestic taxes related to petroleum products.
3/ Current expenditure includes subsidies to oil traders to cover less-than-complete pass-through of international prices to domestic prices.
4/ Staff estimates, as no official data are available.
5/ Includes investment financed through the issuance of infrastructure and education bonds; SOCB recapitalization bonds issued in 2004;
domestic and ODA-financed on-lending; and sovereign issuance for on-lending purposes.

17
Table 14. Vietnam: Government Revenues, 200407
2004

2005

2006

2007
Budget

(In trillions of dong)


Total revenue and grants
Tax revenue
Corporate income tax
Individual income tax
Capital user charge
Land and housing tax
License tax
Tax on the transfer of properties
Tax on land use right
Value added tax (VAT)
Excises
Slaughter tax
Agricultural tax
Import and export taxes
Other taxes on trade
Other taxes
Nontax revenue
Fees and charges
Rental of land
Income from natural resources
Capital revenues
Other
Grants

191.3

217.1

264.2

281.9

138.2
57.0
3.5
0.0
0.4
0.7
2.6
0.6
38.8
12.8
0.0
0.1
21.6
0.0
0.0

166.2
71.7
4.2
0.0
0.5
0.7
2.8
1.0
45.7
15.7
0.0
0.1
23.6
0.0
0.0

210.3
100.8
5.2
0.0
0.6
0.8
3.4
1.3
54.8
17.1
0.0
0.1
26.3
0.0
0.0

231.4
99.0
6.1
0.0
0.6
0.8
3.8
1.2
78.9
17.1
0.0
0.1
23.8
0.0
0.0

50.2
22.0
1.0
17.4
1.3
8.5

48.5
21.0
1.0
21.9
0.9
3.8

50.3
23.1
1.6
20.2
1.5
3.9

47.5
23.1
1.1
19.9
0.8
2.6

2.9

2.3

3.6

3.0

(In percent of GDP)


Total revenue and grants

26.7

25.9

27.1

24.9

19.3
8.0
0.5
0.0
0.1
0.1
0.4
0.1
5.4
1.8
0.0
0.0
3.0
0.0
0.0

19.8
8.5
0.5
0.0
0.1
0.1
0.3
0.1
5.4
1.9
0.0
0.0
2.8
0.0
0.0

21.6
10.4
0.5
0.0
0.1
0.1
0.3
0.1
5.6
1.8
0.0
0.0
2.7
0.0
0.0

20.5
8.8
0.5
0.0
0.1
0.1
0.3
0.1
7.0
1.5
0.0
0.0
2.1
0.0
0.0

Nontax revenue
Fees and charges
Rental of land
Income from natural resources
Capital revenues
Other

7.0
3.1
0.1
2.4
0.2
1.2

5.8
2.5
0.1
2.6
0.1
0.4

5.2
2.4
0.2
2.1
0.2
0.4

4.2
2.0
0.1
1.8
0.1
0.2

Grants

0.4

0.3

0.4

0.3

Tax revenue
Corporate income tax
Individual income tax
Capital user charge
Land and housing tax
License tax
Tax on the transfer of properties
Tax on land use right
VAT
Excises
Slaughter tax
Agricultural tax
Import and export taxes
Othe taxes on trade
Other taxes

Sources: Ministry of Finance; and Fund staff estimates.

18
Table 15. Vietnam: Government Expenditures, 200407 1/
2004

2005

2006

2007
Budget

(In trillions of dong)


Total expenditure (cash basis, excl. off-budget investment)
Total current expenditure
General administrative services
Economic services
Social services
Education
Health
Social subsidies
Other
Other noninterest expenditure
Interest payments (paid)
Capital expenditure
Off-budget investment expenditure
Education bonds
Infrastructure bonds
Reform bonds (pre-2000 SOCB debt)
Municipal bonds
On-lending 2/

184.8

226.9

267.6

320.7

121.2

155.0

181.5

221.3

15.9
10.3
55.2
20.4
6.0
17.3
11.5
32.7
7.2

16.8
12.8
77.3
29.1
10.7
23.6
13.8
41.1
7.0

19.0
15.0
91.4
33.8
12.7
28.7
16.3
47.2
8.9

24.8
16.3
97.3
38.1
14.7
26.8
17.8
71.1
11.7

63.6

72.0

86.1

99.5

26.4
0.0
5.0
1.5
2.6
17.3

39.4
2.8
10.6
0.0
3.5
22.5

33.7
0.0
10.3
0.0
2.5
20.9

39.4
0.0
12.5
0.0
3.0
23.9

(In percent of GDP)


Total expenditure (cash basis, excl. off-budget investment)
Total current expenditure
General administrative services
Economic services
Social services
Education
Health
Social subsidies
Other
Other noninterest expenditure
Interest payments (paid)
Capital expenditure
Off-budget investment expenditure
Education bonds
Infrastructure bonds
Reform bonds (pre-2000 SOCB debt)
Municipal bonds
Onlending 2/

25.8

27.1

27.5

28.4

16.9

18.5

18.6

19.6

2.2
1.4
7.7
2.9
0.8
2.4
1.6
4.6
1.0

2.0
1.5
9.2
3.5
1.3
2.8
1.7
4.9
0.8

2.0
1.5
9.4
3.5
1.3
2.9
1.7
4.8
0.9

2.2
1.4
8.6
3.4
1.3
2.4
1.6
6.3
1.0

8.9

8.6

8.8

8.8

3.7
0.0
0.7
0.2
0.4
2.4

4.7
0.3
1.3
0.0
0.4
2.7

3.5
0.0
1.1
0.0
0.3
2.1

3.5
0.0
1.1
0.0
0.3
2.1

Sources: Ministry of Finance; and Fund staff estimates.


1/ Total government expenditure comprises budgeted expenditure, including the contingency allocation, and approved
off-budget investment expenditure.
2/ Includes domestically-financed on-lending through the Vietnam Development Bank (formerly Development
Assistance Fund), as well as externally-financed operations through ODA and sovereign debt issuance.

19
Table 16. Vietnam: Treasury Bill and Bond Issues, 200506
(In billions of dong, unless otherwise indicated)

Auction date

Treasury Bills (one-year)


Amount
Average
End-month
sold
yield
outstanding stock

2005 January
February
March
April
May
June
July
August
September
October
November
December

600
1,000
870
350
1,230
1,521
1,800
1,600
4,250
6,300
1,900
700

6.0
6.0
6.0
6.1
6.1
6.2
6.2
6.3
6.3
6.3
6.3
6.3

19,765
19,025
17,295
15,545
15,075
14,396
14,724
13,922
16,272
21,172
21,822
22,121

2006 January
February
March
April
May
June
July
August
September
October
November
December

500.0
2,900.0
2,800.0
2,000.0
2,000.0
3,000.0
3,345.0
2,850.1
680.0
1,300.0
100.0
600.0

6.3
6.3
6.3
5.9
5.7
5.2
4.0
3.7
3.4
3.4
3.4
3.3

22,021
23,921
25,851
27,501
28,271
29,750
31,295
32,545
28,975
23,975
22,175
22,075

Treasury Bonds (two-year)


Amount
Average
End-month
sold
yield outstanding stoc

Sources: State Bank of Vietnam and Ministry of Finance; and Fund staff estimates.

163
401
409
760
148
298
248
211
251
339
560
277
652
393
453
343
309
200
127
352
-

8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.4
8.6
8.6
8.6
8.6
8.6
8.6
8.6
8.6
8.6
8.6
-

5,633
5,736
5,806
5,695
5,705
5,668
5,677
5,665
5,578
5,453
5,710
5,696
5,571
5,271
5,152
4,977
4,764
4,563
4,460
4,304
4,216
3,979
3,844
3,335

Treasury Bonds (five-year)


Amount
End-month
sold
outstanding stock
173
335
1,340
940
2,167
1,764
598
1,936
2,129
890
1,378
1,375
751
1,150
4,423
2,705
2,550
2,289
780
1,470
600
500
798
590

15,797
16,132
17,472
18,412
20,193
21,557
21,855
23,491
25,120
26,010
27,388
28,763
29,514
30,664
35,087
37,792
40,342
42,631
43,046
44,081
44,681
44,392
44,847
44,831

20
Table 17. Vietnam: Monetary Survey, 2003-07 1/

Net foreign assets


Foreign assets
Foreign liabilities

2003

2004

2005

2006

131.4
150.5
-19.1

145.9
172.5
-26.6

191.1
220.5
-29.4

287.9
327.0
-39.1

341.4
387.0
-45.6

381.3
430.8
-49.5

Mar

2007

June

Net domestic assets


Domestic credit
Net claims on government
Credit to the economy
of which in foreign currency
Claims on state enterprises
Claims on other sectors
Other items, net

279.8
316.9
20.1
296.7
65.2
105.4
191.3
-37.0

386.4
434.6
14.5
420.0
104.5
142.9
277.1
-48.1

499.7
585.6
32.5
553.1
134.3
181.3
371.8
-86.0

634.7
730.3
36.5
693.8
146.4
218.5
475.3
-95.6

689.4
764.7
26.3
738.3
162.7
231.8
506.5
-75.2

735.9
833.5
15.8
817.7
181.9
...
...
-97.6

Total liquidity (M2)


of which: total deposits
Dong liquidity
Currency outside banks
Deposits
Foreign currency deposits
(in millions of U.S. dollars)
(in percent of total liquidity)

411.2
320.6
314.1
90.6
223.6
97.1
6,220
23.6

532.3
423.2
402.7
109.1
293.6
129.6
8,215
24.3

690.7
559.5
531.5
131.2
400.3
159.2
10,027
23.0

922.7
763.9
723.2
158.8
564.4
199.5
12,396
21.6

1,030.8
856.9
828.6
173.9
654.7
202.2
12,560
19.6

1,117.2
947.0
891.5
170.3
721.3
225.7
13,992
20.2

(Annual percentage change, unless otherwise indicated)


Credit to the economy
of which in foreign currency
Claims on state enterprises
Claims on other sectors
Total liquidity (M2)
of which: total deposits
Dong liquidity
Currency outside banks
Deposits
Foreign currency deposits
(change during year, in millions of U.S. dollars)

28.4
41.0
17.8
35.1
24.9
25.8
33.4
22.0
38.6
3.7

41.6
60.3
35.6
44.8
29.5
32.0
28.2
20.4
31.3
33.5

Velocity of M2 2/
Money multiplier 3/
Currency/total deposits (in percent)
Foreign currency deposits/total deposits
Foreign currency loans/total loans

1.4
3.4
28.2
30.3
22.0

(In percent, unless otherwise indicated)


1.3
1.2
1.1
1.1
3.8
4.0
4.0
4.3
25.8
23.4
20.8
20.3
30.6
28.5
26.1
23.6
24.9
24.3
21.1
22.0

Memorandum items:
Gross official international reserves 4/
(in weeks of next year's imports of GNFS)
(change during year, in millions of U.S. dollars)
Net foreign assets of the banking system
(change during year, in millions of U.S. dollars)

31.7
28.5
26.9
34.2
29.7
32.2
32.0
20.2
36.3
22.8

25.4
9.0
20.5
27.8
33.6
36.5
36.1
21.1
41.0
25.3

31.6
21.3
26.9
33.8
39.4
42.2
45.0
26.8
50.8
20.2

36.8
28.3
...
...
42.7
45.8
48.3
27.6
54.2
24.1

1.0
4.2
18.0
23.8
22.2

(In millions of U.S. dollars, unless indicated otherwise)


5,620
8.7
1,929
8,419
778

6,314
8.4
694
9,248
829

9,597
9.4
3,283
12,036
2,788

11,483
10.4
1,886
17,894
5,857

17,244
...
5,761
21,204
3,310

20,026
...
8,543
23,638
5,744

Sources: State Bank of Vietnam; and Fund staff estimates.


1/ Data comprise the SBV, six state-owned commercial banks, and 79 non-state credit institutions.
2/ Velocity is measured as the ratio of GDP to end-of-period total liquidity (M2).
3/ Money multiplier is measured as the ratio of total liquidity (M2) to reserve money.
4/ Excludes foreign currency counterpart of swap operations, government foreign currency deposits at the SBV, and
foreign currency transactions related to the possible issuance of international bonds by the government.

21
Table 18. Vietnam: Balance Sheet of State Bank of Vietnam, 2003-07
(In trillions of dong, unless otherwise indicated)
2003

2004

2005

2006

2007
Mar

Jun

Net foreign assets of SBV


Foreign assets
Foreign liabilities

91.0
99.5
-8.4

105.7
113.4
-7.7

140.4
146.7
-6.2

211.9
218.2
-6.3

290.7
297.0
-6.3

332.7
338.6
-6.0

Net domestic assets


Domestic credit (net)
Net claims on government
Claims on banks
Other items net

30.6
24.2
10.7
13.6
6.4

35.5
25.7
11.3
14.4
9.8

34.1
18.9
7.9
11.0
15.2

18.8
1.1
-6.9
8.0
17.8

-48.3
-19.2
-27.3
8.1
-29.1

-64.3
-14.6
-25.0
10.4
-49.7

121.6
94.9
26.8

141.2
114.1
27.0

174.6
137.4
37.1

230.8
167.4
63.4

242.4
185.3
57.1

268.4
182.4
86.0

27.4

16.1

23.7

32.2

32.1

50.1

Reserve money
Currency in circulation
Bankers' deposits
Memorandum items:
Reserve money growth (annual percentage change)
Sources: State Bank of Vietnam; and staff estimates.

22
Table 19 Vietnam: Consolidated Balance Sheet of Deposit Money Banks (DMBs), 2003-07 1/
(In trillions of dong, unless otherwise indicated)
2003

2004

2005

2007

2006
Mar

Jun

Net foreign assets of DMBs


Foreign assets
Foreign liabilities

40.4
51.1
-10.7

40.2
59.1
-18.9

50.6
73.8
-23.2

76.0
108.8
-32.8

50.7
90.0
-39.3

48.6
92.2
-43.6

Net domestic assets of DMBs


Domestic credit (net) from the DMBs
Net claims on government by DMBs
Credit to the economy by DMBs
Claims on enterprises
Claims on other sectors
Claims on nonbank financial institutions
Other domestic assets (net)
Reserves
Credit from SBV
Capital and reserves
Other items (net)

280.3
306.2
9.5
296.7
105.4
191.3
0.0
-25.9
30.8
-14.5
-41.7
-0.5

383.0
423.3
3.2
420.0
142.9
277.1
0.0
-40.3
31.6
-16.7
-57.6
2.4

508.9
577.7
24.6
553.1
181.3
371.8

687.8
737.2
43.4
693.8
218.5
475.3

806.2
792.0
53.6
738.3
231.8
506.5

898.3
858.5
40.8
817.7
...
...

-68.8
43.0
-20.9
-65.0
-25.9

-49.4
71.3
-25.4
-87.9
-7.4

14.2
66.6
-10.0
-102.8
60.5

39.8
95.5
-11.3
-120.4
76.1

Total deposits
Dong deposits
Demand deposits
Time deposits
Foreign currency deposits
Demand deposits
Import/restricted deposits

320.6
223.6
69.8
153.8
97.1
92.5
4.6

423.2
293.6
92.8
200.8
129.6
123.2
6.4

559.5
400.3
114.9
285.4
159.2
152.6
6.6

763.9
564.4
138.5
425.9
199.5
191.2
8.2

856.9
654.7
149.6
505.1
202.2
194.2
8.0

947.0
721.3
170.7
550.6
225.7
214.4
11.3

(Annual percentage change, unless otherwise indicated)


Net foreign assets of DMBs
Net domestic assets of DMBs
Domestic credit (net) from the DMBs
Credit to the economy by DMBs
Claims on enterprises
Claims on other sectors
Banks' reserves
Credit from SBV
Capital and reserves
Total deposits
Dong deposits
Foreign currency deposits

-33.7
44.4
33.8
28.4
17.8
35.1
52.6
-24.7
34.9
25.8
38.6
3.7

-0.4
36.7
38.2
41.6
35.6
44.8
2.8
15.1
38.0
32.0
31.3
33.5

25.9
32.8
36.5
31.7
26.9
34.2
35.9
25.6
12.9
32.2
36.3
22.8

Sources: State Bank of Vietnam (SBV); and staff estimates.


1/ Data comprise six state-owned commercial banks, and 79 non-state credit institutions.

50.1
35.2
27.6
25.4
...
...
65.8
21.5
35.2
36.5
41.0
25.3

-0.2
46.2
32.8
31.6
...
...
45.6
-4.7
43.6
42.2
50.8
20.2

-3.6
50.0
35.1
36.8
...
...
120.7
6.8
60.4
45.8
54.2
24.1

23
Table 20. Vietnam: Distribution of Credit, 200207 1/ 2/
2002

2003

2004

2005

2006

2007
Mar.

231,078
89,500
141,578

296,737
105,400
191,337

(In billions of Dong)


420,335
553,106
142,900
181,306
277,435
371,800

693,800
218,547
475,253

738,300
231,826
506,474

Credit extended by state-owned commercial banks 4/


To state enterprises
To other sectors
Credit extended by other banks 5/
To state enterprises
To other sectors

175,489
81,600
93,889
55,589
7,900
47,689

214,800
95,700
119,100
81,937
9,700
72,237

315,335
145,800
169,535
105,000
16,300
88,700

381,406
158,006
223,400
171,700
23,300
148,400

440,500
175,700
264,800
253,300
42,800
210,500

456,800
182,400
274,400
281,500
49,400
232,100

Total dong loans 3/


To state enterprises
To other sectors

184,829
66,500
118,329

231,700
74,900
156,800

317,400
96,700
220,700

418,700
124,800
293,900

547,500
154,700
392,800

575,500
162,300
413,200

Credit extended by state-owned commercial banks 4/ 149,877


To state enterprises
61,500
To other sectors
88,377
Credit extended by other banks 5/
34,952
To state enterprises
5,000
To other sectors
29,952

177,700
68,700
109,000
54,000
6,200
47,800

234,400
87,100
147,300
83,000
9,600
73,400

302,800
109,900
192,900
115,900
14,900
101,000

362,800
125,500
237,300
184,700
29,200
155,500

370,800
128,800
242,000
204,700
33,500
171,200

46,249
23,000
23,249

65,037
30,500
34,537

102,935
46,200
56,735

134,406
56,506
77,900

146,300
63,847
82,453

162,800
69,526
93,274

25,612
20,100
5,512
20,637
2,900
17,737

37,137
27,000
10,137
27,900
3,500
24,400

61,735
39,500
22,235
41,200
6,700
34,500

78,606
48,106
30,500
55,800
8,400
47,400

77,700
50,200
27,500
68,600
13,600
55,000

86,000
53,600
32,400
76,800
15,900
60,900

Total credit to the economy 3/


To state enterprises
To other sectors

Total foreign currency loans 3/


To state enterprises
To other sectors
Credit extended by state-owned commercial banks 4/
To state enterprises
To other sectors
Credit extended by other banks 5/
To state enterprises
To other sectors

(In percent of total credit to the economy)


Total credit to the economy 3/
To state enterprises
To other sectors

100.0
38.7
61.3

100.0
35.5
64.5

100.0
34.0
66.0

100.0
32.8
67.2

100.0
31.5
68.5

100.0
31.4
68.6

Credit extended by state-owned commercial banks 4/


To state enterprises
To other sectors
Credit extended by other banks 5/
To state enterprises
To other sectors

75.9
35.3
40.6
24.1
3.4
20.6

72.4
32.3
40.1
27.6
3.3
24.3

75.0
34.7
40.3
25.0
3.9
21.1

69.0
28.6
40.4
31.0
4.2
26.8

63.5
25.3
38.2
36.5
6.2
30.3

61.9
24.7
37.2
38.1
6.7
31.4

Total dong loans


Credit extended by state-owned commercial banks 4/
Credit extended by other banks 5/
Total foreign currency loans
Credit extended by state-owned commercial banks 4/
Credit extended by other banks 5/

80.0
64.9
15.1
20.0
11.1
8.9

78.1
59.9
18.2
21.9
12.5
9.4

75.5
55.8
19.7
24.5
14.7
9.8

75.7
54.7
21.0
24.3
14.2
10.1

78.9
52.3
26.6
21.1
11.2
9.9

77.9
50.2
27.7
22.1
11.6
10.4

(In billions of dong)


Total credit to the economy by sector
Agriculture, fisheries, and forestry
Industry and construction
Industry
Construction
Trade, transportation, and communications
Trade
Transport, storage, and communications
Other services

65,860
92,854
58,694
34,160
51,762
39,745
12,017
20,602

87,200
115,700
74,500
41,200
68,000
51,000
17,000
25,837

124,800
165,200
104500
60700
97,500
74400
23100
32800

163,717
219,027
139,934
79,093
129,425
97,345
32,080
40,929

202,557
277,339
177,056
100,283
161,099
122,865
38,234
52,839

214,797
296,591
189,992
106,599
171,282
130,499
40,783
55,654

(In percent of total credit to the economy)


Agriculture, fisheries, and forestry
Industry and construction
Trade, transportation, and communications
Other services

28.5
40.2
22.4
8.9

29.4
39.0
22.9
8.7

29.7
39.3
23.2
7.8

29.6
39.6
23.4
7.4

29.2
40.0
23.2
7.6

Sources: State Bank of Vietnam; and Fund staff estimates.


1/ Figures on credit to the economy by sector of ownership are estimated rather than actual data.
2/ Data comprise six state-owned commercial banks and 77 non-state credit institutions.
3/ Excludes net credit to the government.
4/ Includes four large state-owned commercial banks.
5/ Includes two small state-owned commercial banks, joint-stock banks, joint-venture banks, branches of foreign banks, and the
Central People's Credit Fund and since December 2005 includes also 5 finance companies.

29.1
40.2
23.2
7.5

2005
2006

10.0
10.7
3.1

2.4
6.1
1.2
1.5

10.7
11.7
3.6

2.4
6.7
1.2
1.6

12.0
13.6
5.5

2.9
7.8
1.3
4.0

11.8
13.7
5.5

2.9
7.9
1.3
4.4

1/ Annual interest rates computed by compounding applicable monthly interest rates over relevant twelve
month period.

Source: State Bank of Vietnam.

Lending rates
Working capital (short term)
Fixed capital (medium term)
Foreign currency loans (short term)

Deposit rates
Demand deposits, enterprises
Savings deposits (three-month), households
Foreign currency demand deposits
Foreign currency deposits (six-month)

2004

(End-of-period rates, in percent per annum) 1/

2003

Table 21. Vietnam: Nominal Interest Rates, 2003-07

11.8
13.7
5.7

2.9
7.9
1.5
4.6

2007
May

24

25
Table 22. Vietnam: Exchange Rate Developments, 200207
2002

2003

2004

2005

2006

2007
Jan-June

79.7
96.7

77.4
97.6

(period average; 2000=100)


Effective exchange rates
Nominal
Real

97.7
98.3

88.5
90.6

82.6
89.3

81.1
93.2

(Annual percentage change; - depreciation)


Nominal effective exchnage rate
Real effective exchnage rate

-4.4
-1.8

-9.4
-7.9

-6.7
-1.3

-1.8
4.3

-1.7
3.8

-4.1 1/
1.0 1/

(In units indicated)


Dong per U.S. dollar, end of period 2/
Dong per U.S. dollar, period average 2/
Dong per SDR, end of period
Dong per SDR, period average

15,368
15,244
20,941
19,785

15,608
15,479
23,249
21,695

15,739
15,705
24,502
23,281

15,875
15,819
22,748
23,429

16,091
15,965
24,152
23,604

16,131
16,106
24,448
24,259

(Annual percentage change, - depreciation)


Dong per U.S. dollar, end of period
Dong per U.S. dollar, period average
Dong per SDR, end of period
Dong per SDR, period average

-2.0
-3.1
-10.5
-5.5

-1.6
-1.5
-11.0
-9.7

Sources: IMF Information Notice System; and Fund staff estimates.


1/ Compared with Jan-Jun 2006.
2/ Interbank rate as reported by the SBV.
3/ Compared to end-2006.

-0.8
-1.5
-5.4
-7.3

-0.9
-0.7
7.2
-0.6

-1.4
-0.9
-6.2
-0.7

-0.2
-1.2
-1.2
-4.7

3/
1/
3/
1/

26
Table 23. Vietnam: Balance of Payments, 2002-06
2002

2003

2004

2005

2006

(In millions of U.S. dollars, unless otherwise indicated)


Current account balance
Excluding official transfers

-676
-830

-1,935
-2,074

-1,565
-1,740

-497
-727

-164
-413

-1,054
16,706
3,270
17,760
2,017

-2,582
20,149
3,821
22,730
2,433

-2,287
26,485
5,676
28,772
3,574

-2,439
32,447
7,389
34,886
4,968

-2,776
39,826
8,265
42,602
5,970

Non-factor services (net)


Receipts
Payments

-749
2,948
3,697

-778
3,272
4,050

-871
3,867
4,739

-219
4,176
4,395

-8
5,100
5,108

Investment income (net)


Receipts
Payments

-794
167
961

-814
125
939

-891
188
1,079

-1,219
364
1,583

-1,429
668
2,098

1,921
1,767
154

2,239
2,100
139

2,485
2,310
175

3,380
3,150
230

4,049
3,800
249

1,071

4,086

2,447

2,628

4,486

Gross foreign direct investment (FDI) inflows


Equity
Loan disbursements
FDI loan repayments

2,023
1,882
141
414

1,894
1,294
600
590

1,878
1,283
595
536

1,954
1,204
750
524

2,400
1,605
795
643

Medium and long-term loans (net)


Disbursements
ODA loans
Amortization 1/

458
1,102
1,073
644

974
1,540
1,258
566

1,396
1,920
1,394
523

1,360
1,914
1,432
555

1,139
1,687
1,380
548

--

--

865

1,313

-996

1,808

-291

-1,027

277

395

2,151

883

2,131

4,322

-464
-464

-2151
-2,151

-883
-883

-2,131
-2,131

-4,322
-4,322

3,692
7.2
-1.9
-5.5
11.2
22.1
12.9
23.8
35.0
8.6

5,619
8.7
-4.9
-8.4
20.6
28.0
21.5
28.9
33.7
7.8

6,314
8.4
-3.4
-8.0
31.4
26.6
27.4
24.1
33.5
6.0

8,557
9.4
-0.9
-5.5
22.5
21.2
20.4
18.7
32.2
5.6

11,483
10.4
-0.3
-4.0
22.7
22.1
26.0
22.4
30.2
5.3

Trade balance
Exports, f.o.b.
of which: oil
Imports, f.o.b.
of which: oil

Transfers (net)
Private
Official
Capital account balance

Portfolio Investment 2/
Short-term capital (net) 3/
Overall balance
Financing
Change in SBV's NFA (-, increase)
Memorandum items:
Gross official reserves
In weeks of next year's imports
Current account deficit (in percent of GDP)
Non-oil current account deficit (in percent of GDP)
Export value (ann. perc. change)
Import value (ann. perc. change)
Non-oil export value (ann. perc. change)
Non-oil import value (ann. perc. change)
External debt (in percent of GDP)
Debt service (in percent of exports of GNFS)

Sources: Data provided by the Vietnamese authorities; and staff estimates.


1/ Including two debt buyback operations carried out in 2002 and 2003, respectively.
2/ Includes US$750 million sovereign bond issue in 2005.
3/ Including net errors and omissions and trade credit.

27
Table 24. Vietnam: Merchandise Exports by Commodity, 200206
2002

2003

2004

2005

2006
Est.

(In millions of U.S. dollars, unless otherwise indicated)


Total exports, f.o.b.
(annual percentage change)
(Excluding oil)
(annual percentage change)

16,706
11.2
13,436
12.9

20,149
20.6
16,328
21.5

26,485
31.4
20,814
27.5

32,447
22.5
25,074
20.5

39,826
22.7
31,561
25.9

Crude oil
Volume ('000 tons)
Unit value (US$/ton)

3,270
16,876
194

3,821
17,143
223

5,671
19,501
291

7373
17967
410

8265
16419
503

Coal
Volume ('000 tons)
Unit value (US$/ton)

154
6,047
26

188
7,262
26

354
11,636
30

670
17,988
37

914.634
29307
31

Rubber
Volume ('000 tons)
Unit value (US$/ton)

271
455
595

378
432
874

596
513
1,162

804
554
1,451

1,286
708
1,817

Rice
Volume ('000 tons)
Unit value (US$/ton)

726
3,236
224

720
3,810
189

950
4,063
234

1,408
5,255
268

1,276
4,643
275

Coffee
Volume ('000 tons)
Unit value (US$/ton)

322
722
445

505
749
674

642
976
658

740
913
811

1,217
981
1,241

Marine products (including frozen items)

2,022

2,200

2,408

2,733

3,358

Garments

2,732

3,609

4,430

4,772

5,834

Footwear

1,875

2,261

2,691

3,039

3,592

Handicrafts

340

397

508

593

630

Electronic goods and components

605

855

1,062

1,427

1,708

4,389

5,216

7,172

8,887

11,745

Other

(In percent of value of total exports)


Crude oil
Coal
Rubber
Rice
Coffee
Marine products
Garments
Footwear
Handicrafts
Electronic goods and components
Other
Source: General Statistics Office.

19.6
0.9
1.6
4.3
1.9
12.1
16.4
11.2
2.0
3.6
26.3

19.0
0.9
1.9
3.6
2.5
10.9
17.9
11.2
2.0
4.2
25.9

21.4
1.3
2.3
3.6
2.4
9.1
16.7
10.2
1.9
4.0
27.1

22.7
2.1
2.5
4.3
2.3
8.4
14.7
9.4
1.8
4.4
27.4

20.8
2.3
3.2
3.2
3.1
8.4
14.6
9.0
1.6
4.3
29.5

28
Table 25. Vietnam: Merchandise Imports by Commodity, 200206
2002

2003

2004

2005

2006
Est.

(In millions of U.S. dollars, unless otherwise indicated)


Total imports, c.i.f.
(annual percentage change)

19,746
21.8

25,256
27.9

31,969
26.6

36,761
15.0

44,891
22.1

Petroleum products (gasoline, diesel, etc.)


Volume ('000 tons)
Unit value (US$/ton)

2,023
9,970
203

2,441
9,936
246

3,572
11,048
323

5,024
11,478
438

5,970
11,212
532

Fertilizer
Volume ('000 tons)
Unit value (US$/ton)

478
3,820
125

631
4,135
153

759
4,065
187

651
2915
223

687
3,119
220

Insecticide
Volume ('000 tons)
Unit value (US$/ton)

116
...
...

116.1
...
...

143
...
...

168

305

Steel and iron


Volume ('000 tons)
Unit value (US$/ton)

1,334
4,946
270

1,695
4,623
367

2,553
5,152
496

2978
5495
542

2,936
5,707
514

Motorcycles
Volume ('000 unit)
Unit value (US$/unit)

423
1,480
286

329
...
...

452
...
...

541
...
...

557

Motor cars and trucks


Volume ('000 units)
Unit value (US$/unit)

262
29.4
8,911

275
21.4
12,863

360
25.0
14,420

335
21.3
15,735

213
12
17,045

Wheat flour
Volume ('000 tons)
Unit value (US$/ton)

11
62
184

10
52
187

10
48
209

9
39
221

9
38
228

Textile yarn (fibers, spun)


Volume ('000 tons)
Unit value (US$/ton)

273
...
...

317
...
...

384
...
...

400
...
...

544
339

Cotton

112

105

192

170

219

1,711

2,034

1,350

2282

1,951

...

...

...

Machinery and equipment (including aircraft)

3,793

5,359

5,249

5281

6,628

Other

9,210

11,944

16,945

Leather and garment material


Cigarette material (including tobacco)

18,922

25,415

(In percent of value of total imports)


Petroleum products
Fertilizer
Insecticide
Steel and iron
Motorcycles
Motor cars and trucks
Wheat flour
Textile yarn
Cotton
Leather and garment material
Cigarette material
Machinery and equipment
Other
Source: General Statistics Office.

10.2
2.4
0.6
6.8
2.1
1.3
...
1.4
0.6
8.7
...
19.2
46.6

9.7
2.5
0.5
6.7
1.3
1.1
...
1.3
0.4
8.1
...
21.2
47.3

11.2
2.4
0.4
8.0
1.4
1.1
...
1.2
0.6
4.2
...
16.4
53.0

13.7
1.8
0.5
8.1
1.5
0.9
...
1.1
0.5
6.2
...
14.4
51.5

13.3
1.5
0.7
6.5
1.2
0.5
...
1.2
0.5
4.3
...
14.8
56.6

29
Table 26. Vietnam: Direction of Trade, 200206
(In percent of total exports or imports)
2002

2003

2004

2005

2006
Prel.

Exports
Industrial countries or regions
Japan
Hong Kong SAR
Korea
Singapore
France
Germany
Italy
Netherlands
Switzerland
United Kingdom
Other Europe (industrialized) 1/
United States
Canada
Australia
New Zealand

68.2
14.6
2.0
2.8
5.8
2.6
4.4
1.6
2.4
0.4
3.4
4.6
14.7
0.8
8.0
0.1

71.0
14.4
1.8
2.4
5.1
2.5
4.2
1.6
2.4
0.4
3.7
4.7
19.5
0.9
7.1
0.1

68.6
13.4
1.4
2.3
5.6
2.1
4.0
1.4
2.2
0.5
3.8
4.7
19.0
1.0
7.1
0.2

66.4
13.4
1.1
2.0
5.9
2.0
3.3
1.4
2.0
0.3
2.4
4.5
18.3
1.1
8.4
0.1

67.9
13.1
1.1
2.1
4.1
2.0
3.6
1.6
2.2
0.4
3.0
4.6
19.7
1.1
9.2
0.1

Developing countries
China (mainland)
Indonesia
Malaysia
Philippines
Russia
Taiwan POC
Thailand
Other

31.8
9.1
2.0
2.1
1.9
1.1
4.9
1.4
9.4

29.0
9.3
2.3
2.3
1.7
0.8
3.7
1.7
7.3

31.4
10.9
1.7
2.4
1.9
0.8
3.4
2.0
8.3

23.5
10.0
1.4
3.2
2.6
0.8
2.9
2.7
10.1

32.1
7.6
2.4
3.0
2.0
1.0
2.4
2.3
11.3

Imports
Industrial countries or regions
Japan
Hong Kong SAR
Korea
Singapore
France
Germany
Italy
Netherlands
Switzerland
United Kingdom
Other Europe (industrialized) 1/
United States
Canada
Australia
New Zealand

55.6
12.7
4.1
11.5
12.8
1.5
2.8
1.4
0.6
0.7
0.8
2.2
2.3
0.3
1.4
0.3

54.8
11.8
3.9
10.4
11.4
1.6
2.4
1.5
1.3
1.2
0.9
2.2
4.5
0.3
1.1
0.4

52.3
11.1
3.4
10.5
11.3
1.9
2.2
1.0
0.6
2.1
0.7
1.8
3.5
0.3
1.4
0.3

50.2
11.1
3.4
9.8
12.2
1.2
1.8
0.8
0.8
2.4
0.5
1.7
2.3
0.5
1.4
0.3

51.4
10.5
3.2
8.6
14.0
0.9
2.0
0.7
0.8
3.0
0.4
1.7
2.2
0.4
2.4
0.4

44.4
10.9
1.8
3.5
0.5
2.5
12.8
4.8
7.5

45.2
12.4
2.2
3.7
0.6
1.9
11.5
5.1
7.8

47.7
14.4
2.1
3.8
0.6
2.1
11.6
5.8
7.4

49.8
16.0
1.9
3.4
0.6
2.1
11.7
6.5
7.6

48.6
16.5
2.3
3.3
0.8
1.0
10.7
6.8
7.3

19.8
9.5

19.9
10.2

18.8
8.4

15.0
7.0

17.8
7.0

14.6
24.2

14.7
23.6

15.3
24.3

15.6
25.4

16.0
27.9

Developing countries
China (mainland)
Indonesia
Malaysia
Philippines
Russia
Taiwan POC
Thailand
Other
Memorandum items:
European Union
Exports
Imports
ASEAN
Exports
Imports

Sources: General Statistics Office; and Fund staff estimates.


1/ Defined as Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Luxembourg, Norway, Portugal, Spain,
and Sweden.

30
Table 27. Vietnam: Commitments of Foreign Direct Investment, 2002-06 1/
2002

2003

2004

2005

2006

4,510
2,895
40
1,285
290
20
174
709
601
124
477
393
427
6,835

7,842
6,034
56
1,562
190
107
327
615
526
865
600
408
715
12,004

66.0
42.4
0.6
18.8
4.2
0.3
2.5
10.4
8.8
1.8
7.0
5.8
6.2
100.0

65.3
50.3
0.5
13.0
1.6
0.9
2.7
5.1
4.4
7.2
5.0
3.4
6.0
100.0

(In millions of U.S. dollars)


Industry
Heavy industries
Export processing zones
Light industries
Food
Oil and gas
Construction
Transportation and communications
Real estate
Hotels and tourism
Office property and apartments (office, new cities)
Agriculture, forestry, and fisheries (agr, Fisheries)
Services (service, Culture, finance)
Total

2,043
868
71
774
330
45
192
78
236
218
19
264
134
2,993

2,235
854
18
1,190
173
16
101
19
315
185
130
298
189
3,172

2,741
1,584
41
943
173
12
481
78
467
257
210
537
219
4,534
(In percent of total)

Industry
Heavy industries
Export processing zones
Light industries
Food
Oil and gas
Construction
Transportation and communications
Real estate
Hotels and tourism
Office property and apartments
Agriculture, forestry, and fisheries
Services
Total

68.3
29.0
2.4
25.9
11.0
1.5
6.4
2.6
7.9
7.3
0.6
8.8
4.5
100.0

70.5
26.9
0.6
37.5
5.4
0.5
3.2
0.6
9.9
5.8
4.1
9.4
6.0
100.0

60.5
34.9
0.9
20.8
3.8
0.3
10.6
1.7
10.3
5.7
4.6
11.8
4.8
100.0

Source: Ministry of Planning and Investment.


1/ Includes investments by domestic joint venture partners. Commitments include both new projects and additional capital of ongoing
projects.

31
Table 28. Vietnam: Public Sector Debt, 200306 1/
2003

2004

2005
Prel.

2006
Prel.

(In billions of dong)


Public and publicly guaranteed debt

251,727

305,383

368,027

421,763

84,134

110,152

145,424

180,227

42,795
12,118
30,677

50,649
14,220
36,429

63,019
17,886
45,133

74,762
...
...

Disbursements
maturity less than 1 year
maturity greater than 1 year

22,895
12,118
10,777

27,452
14,222
13,230

33,250
17,886
15,364

36,000
17,514
18,486

Amortization
maturity less than 1 year
maturity greater than 1 year

14,828
6,089
8,739

19,596
12,118
7,478

20,050
14,220
5,830

26,910
17,886
9,024

Interest
maturity less than 1 year
maturity greater than 1 year

2,189
475
1,714

4,056
957
3,099

5,440
1,150
4,290

6,050
1,034
5,016

23,890
2,579
8,050
5,020
1,800
...
...
...
...

32,800
2,579
9,540
10,220
4,364
...
...
...
...

38,801
5,395
9,540
20,805
7,864
600
200
200
200

49,013
5,395
9,540
31,153
10,364
600
200
200
200

167,593
156,202
9,644
9,514
130
1,747

195,232
175,421
17,475
17,345
130
2,336

222,604
203,854
15,941
15,811
130
2,808

241,536
220,511
17,154
17,024
130
3,871

Domestic debt
T-bills and bonds
maturity less than 1 year
maturity greater than 1 year

Vietnam Development Bank (VDB) 1/


Education bonds
Reform bonds
Infrastructure bonds
Municipal bonds
Domestic guarantees
EVN
Petrovietnam
Vinashin
External Debt in billions of dong
Sovereign debt
External guarantees
MOF
SBV
Short term publicly guaranteed

Sources: Ministry of Finance; and Fund staff estimates.


1/ Includes bonds issued by the Vietnam Development Bank (formely Development Assistance Fund)
as well as liabilities to the Postal Savings Service Company and Social Security Fund; capital
mobilized by VDB branches (deposits); and Project Bonds.

32
Table 29. Vietnam: External Debt and Debt Service, 200306 1/
(In million o f U.S. dollars)
2003

2004

2005

2006
Prel.

A. External Debt
Total External Debt
Public and publicly guaranteed 2/
Private

13,535
11,001
2,534

15,266
12,273
2,993

16,833
13,719
3,114

18,330
14,831
3,499

Medium and Long Term


Public and publicly guaranteed 2/
Public
Multilateral
Bilateral
Commercial
Publicly guaranteed 3/
Private

13,346
10,888
10,091
4,151
5,459
509
797
2,458

15,018
12,124
11,159
4,618
6,044
498
965
2,894

16,537
13,541
12,632
5,204
6,210
1,218
909
2,996

18,150
14,831
13,803
5,843
6,771
1,189
1,028
3,319

188
113
...
113
75

248
149
...
149
99

296
178
...
178
118

180
180

1,764
1,477
287

1,858
1,441
417

1,952
1,513
439

1,814
1,270
544

Total Public and Guaranteed Debt Service 2/


Amortization
Interest

699
489
210

771
447
324

722
431
291

824
466
358

Total Public Debt Service


Amortization 4/
Interest

629
435
194

522
227
295

555
310
245

654
360
294

Amortization

1,477

1,441

1,513

1,270

Medium and Long Term


Public and publicly guaranteed 2/
Public
Publicly guaranteed
Private

1,115
518
435
83
597

899
353
227
126
546

1,027
477
310
167
550

1,297
493
330
163
804

287

417

439

543

Short-term
Public and publicly guaranteed
Public
Publicly guaranteed
Private
B. External Debt Service
Total External Debt Service
Amortization 4/
Interest

Interest

Medium and Long Term


287
421
439
522
Public and publicly guaranteed 2/
210
328
291
336
Public
194
295
245
293
Publicly guaranteed
16
33
46
43
Private
77
93
148
186
Sources: Ministry of Finance; and Fund staff estimates.
1/Data for 2005 and 2006 are not fully consistent with the data in the staff report due to small
differences arising from recent revisions in the estimation of private and bilateral debt.
2/ Includes loans to State-owned-enterprises not classified elsewhere.
3/ Short-term debt of State-owned-enterprises.
4/ 2002-03 data reflect debt buyback operations.

6,519

Total

100.0

31.8
0.0
2.4
5.5
10.8
0.1
8.8
0.0
1.2
0.0
7.9
0.0
10.4
0.0
10.5
0.0
9.2
0.1
0.0
0.0
1.0
0.1
0.0
Total

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
100
120
150
10,689

3,087
0
196
614
1,110
1
1,047
0
177
0
855
121
1,164
0
985
0
1,001
25
0
3
291
0
12
100.0

28.9
0.0
1.8
5.7
10.4
0.0
9.8
0.0
1.7
0.0
8.0
1.1
10.9
0.0
9.2
0.0
9.4
0.2
0.0
0.0
2.7
0.0
0.1

Rates in 2003
Bands Number of lines:
number percent

Total

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
100
120
150
10,689

3,087
0
196
614
1,110
1
1,047
0
177
0
855
121
1,164
0
985
0
1,001
25
0
3
291
0
12
100.0

28.9
0.0
1.8
5.7
10.4
0.0
9.8
0.0
1.7
0.0
8.0
1.1
10.9
0.0
9.2
0.0
9.4
0.2
0.0
0.0
2.7
0.0
0.1

Rates in 2004
Bands Number of lines:
number percent

Total

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
100
120
150
10,689

3,087
0
196
614
1,110
1
1,047
0
177
0
855
121
1,164
0
985
0
1,001
25
0
3
291
0
12
100.0

28.9
0.0
1.8
5.7
10.4
0.0
9.8
0.0
1.7
0.0
8.0
1.1
10.9
0.0
9.2
0.0
9.4
0.2
0.0
0.0
2.7
0.0
0.1

Rates in 2005
Bands Number of lines:
number percent

Total

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
90
100
150
11,029

3,268
6
177
676
1,215
23
1,164
10
280
0
859
136
1,053
7
1,039
7
771
26
0
16
240
6
50
100.0

29.6
0.1
1.6
6.1
11.0
0.2
10.6
0.1
2.5
0.0
7.8
1.2
9.5
0.1
9.4
0.1
7.0
0.2
0.0
0.1
2.2
0.1
0.5

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
90
100
120
150
Total

3,270
6
177
688
1,336
23
1,187
531
329
8
1,115
219
1,062
180
466
38
92
22
165
15
173
62
6
55
11,225

29.1
0.1
1.6
6.1
11.9
0.2
10.6
4.7
2.9
0.1
9.9
2.0
9.5
1.6
4.2
0.3
0.8
0.2
1.5
0.1
1.5
0.6
0.1
0.5
100

Rates in 2006 3/
Rates in 2007
Bands Number of lines: Bands Numbers of lines
number percent
number
percent

1/ The normal tariff rates are termed preferential in the official schedule. There are also nonpreferential tariff rates about 50 percent higher than these rates, which are applied to imports
from countries without a trade agreement (or not in the process of negotiating one).
2/ Effective September 1, 2003.
3/ Effective September 15, 2006.
4/ Effective as of August 2007.

Source: Ministry of Finance.

2,076
0
159
360
701
4
576
3
79
2
512
3
679
1
683
2
602
5
0
2
62
8
0

0
0.5
1
3
5
7
10
12
15
18
20
25
30
35
40
45
50
60
70
80
100
120
150

Rates in 2002
Bands Number of lines:
number percent

Table 30. Vietnam: Summary of Normal Tariff Schedule, 2002-07 1/

33

36.0
3.2
6.4
19.6
0.1
11.0
3.1
20.8

100.0

2,002
177
355
1,092
3
610
171
1,158

5,568

10,143

3,257
239
607
3,372
89
125
2,454

100.0

32.1
2.4
6.0
33.2
0.9
1.2
24.2

0
1
3
5
10
15
20

10,162

3,258
241
603
3,396
130
2,131
403

1/ Under Vietnam's current ASEAN Free Trade Area (AFTA) agreement.

0
1
3
5
10
15
20

100.2

32.1
2.4
5.9
33.4
1.3
21.0
4.0

Rates in 2003
Rates in 2004
Bands Number of lines: Bands Number of lines:
number percent
number percent

Source: Ministry of Finance.

0
1
3
5
7
10
15
20

Rates in 2002
Bands Number of lines:
number percent

0
1
3
5
10
15
20
50

Bands

10,277

3277
241
603
4375
1352
32
378
19

100

31.9
2.3
5.9
42.6
13.2
0.3
3.7
0.2

Rates in 2005
Number of lines:
number percent

0
1
3
5
10
15
20
30
40
50

5,478
4
150
4,651
2
24
1
13
19
10,342

53.0
0.0
1.5
45.0
0.0
0.0
0.2
0.0
0.1
0.2
100

0
1
3
5
10
15
20
30
40
50

5472
4
90
4474
11
0
13
5
28
0
10,097

54.19
0.04
0.89
44.31
0.11
0.13
0.05
0.28
100

Rates in 2007
Rates in 2006
Bands Number of lines: Bands Number of lines
number percent
number
percent

Table 31. Vietnam: Common Effective Preferential Tariff (CEPT) Rates, 200207 1/

34

Personal Income Tax

Regular income
Salaries, wages and remuneration, including
overtime income, nightshift, and thirteenth
month salary (if any); allowances; subsidies
received from social insurance funds in
substitution of salaries; and allowances for
lunch and mid-shift meals (if received in
cash).

Bonuses (both in cash or in kind).

Income from the participation in projects,


business associations, enterprises boards of
management or the like.

Income in the form of royalties for using


patents, trademarks, literary and artistic
works.

Income that is not subject to Corporate


Income Tax, such as: income from the
provision of scientific services, technical
services, informatics services, consultancy
services, design, architecture, training,
cultural and artistic performances, artistic
performance organization, sporting activities,
agent services, brokerage and other services.

Housing provided by the employer. This


benefit is taxable, and it is calculated based
on the lower of actual rental and 15% of total
taxable income.

Other income earned by individuals from any


employers.

1.

a)

Nature of the Tax

Exempt income
Interest from bank deposits, bank savings and
loans; interest from bonds, dividend income from
shares; and income from investment in securities,
and gains on the purchases and sales of
securities.
Toxic and dangerous allowances for type of work
under toxic or dangerous labor conditions; regional
allowances, incentive allowances and special
allowances for work in remote or unfrequented
areas, areas with harsh climate, new economic
zones, offshore islands and border areas with
difficult conditions (excluding expatriate
allowances for foreigners); seniority allowance for
armed forces, customs and important forces;
mobile allowance for types of work which require a
regular change of working place and residence;
responsibility and position allowances for civil
servants and officials.
Per diem for business trips (capped by different
rates of cash income for domestic trips and
overseas trips).
Fixed cost of meals for specific types of work;
subsidies and compensation for sick and wounded
soldiers, and victims of labor accidents; insurance
compensation payments for personal and property
insurance policies.
Termination and severance allowances in
accordance with labor regulations.
Relocation costs (one-off) of workers.
Prizes for technical innovations and inventions,
international awards, and national awards
organized or recognized by the State of Vietnam.
Income of family businesses and individuals who
are subject to Corporate Income Tax.

a)

Tax Deductions and Exemptions

Vietnam: Summary of the Tax System, August 2007

Marginal rate
0%
10%
20%
30%
40%

Marginal rate
0%
10%
20%
30%
40%
For non-resident foreigners who stay in
Vietnam less than 183 days in the tax year,
a flat rate of 25% is applied on the Vietnamsourced income.

Monthly income (VND mil)


0-8
8-20
20-50
50-80
Above 80

For resident foreigners and for Vietnamese


citizens on oversea missions, or working at
the professional level in software services
sector:

For Vietnamese citizens:


Monthly income ( VND mil)
0-5
5-15
15-25
25-40
Above 40

Rates

35

Irregular Income
Income from technology transfer (except gifts
or donation); and

Lottery winnings in whatever form, including


promotional prizes.

Residency rules
Non-tax resident: A foreigner is considered
non-tax resident in Vietnam if he/or she stays
in Vietnam for less than 183 days during a tax
year. In this circumstance, a foreigner is only
taxed at 25% on his/or her Vietnamesesourced income. The Vietnamese-sourced
income means all income related to his/or her
service in Vietnam, irrespective of the location

b)

c)

Nature of the Tax

Employees statutory contributions for social


insurance or health insurance from salaries and
wages; and
25% allowable deduction from the income earned
by singers, circus performers, dancers, football
players, and professional athletes that have
certificates from the required specialized state
management agencies.

If a foreigner is considered liable to the Vietnamese


Foreign Contractor Tax, he/or she will not be subject to
Personal Income Tax on the income derived from
contractors work in Vietnam.

Irregular income that does not exceed VND15


million is exempt from Personal Income Tax.

Allowable deductions:

b)

Certain benefits in kind, such as the costs of


training paid directly by the employer to the
training agencies/schools, airfares for home leave
for expatriate taxpayers, and tuition fees for their
children paid directly to schools in Vietnam.

Tax Deductions and Exemptions

Income earned from lottery winnings,


including promotional prizes that exceeds
VND15 millions per lottery shall be subject
to a tax rate of 10% on the total income;
and
a withholding tax of 10% is applied on
individuals who receives income of
VND500,000 or more/time from
commission, brokerage; training; etc.

The Foreign Contractor Tax rates for services


activities may be up to 10%.

Income earned from technology transfer


that exceeds VND 15mil/time shall be
subject to a tax rate of 5% on the total
income;

Rates

Vietnam: Summary of the Tax System (continued), August 2007

36

Foreign contractors who adopt the


Vietnamese Accounting System (VAS)
and VAT by the deduction method:

VAS foreign contractors may adopt a hybrid


method where they still adopt the VAS and pay

These contractors are taxed in a similar manner to


legal entities incorporated in Vietnam, i.e. they
issue VAT invoices, collect VAT on their sales,
claim input VAT credits and pay output VAT, etc.
In that case, these VAS foreign contractors will
generally be liable to pay CIT at the current
applicable rate of 28% on their net profit.

a)

Under Circular 05/2005/TT-BTC, foreign


contractors are split into two categories:

Tax-resident: A foreigner is considered tax


resident if he/or she is present in Vietnam for
183 days or more during a tax year. A tax
resident is subject to PIT on his/her worldwide
income. To determine the worldwide income
of the foreigner, the Vietnamese tax
authorities may wish to check/verify employee
payroll statements or bank payment
vouchers/statements.
2.
Foreign Contractor Tax
The Ministry of Finance released Circular
05/2005/TT-BTC dated 11 January 2005 (Circular
05/2005/TT-BTC) on Foreign Contractor Tax
(FCT). Circular 05/2005/TT-BTC is effective
from 16 February 2005 and replaces Circular
169/1998/TT-BTC dated 22 December 1998 (and
Circular 95/1999/TT-BTC dated 6 August 1999 on
the same issues.

where income is paid.

Nature of the Tax

FCT does not apply to foreign organizations or


individuals supplying goods to Vietnamese
organizations or individuals under pure commercial
contracts. Pure commercial contract is defined as:

FTC does not apply to foreign individuals who are


subject to PIT in Vietnam;
FCT does not apply to foreign organizations or

seller bears all responsibilities, costs and risks


associated with the goods up to the place of delivery
of goods at the Vietnamese border gate; the
purchaser bears all responsibilities, and risks relating
to the receipt and transportation of goods from the
Vietnamese border gate.

- Delivery of goods at a Vietnamese border gate: the

bears all responsibilities, costs and risks associated


with the export and delivery of goods at the foreign
border gate; the purchaser bears all responsibilities,
costs and risks associated with the receipt and
transportation of goods from the foreign border gate
to Vietnam; and

- Delivery of goods at a foreign border gate: the seller

FCT does not apply to foreign organizations which


do not have Vietnamese legal status, but do
business in Vietnam under the Law on Foreign
Investment in Vietnam, Law on Petroleum, Law on
Credit Institutions;

Tax Deductions and Exemptions

Rates

Royalties/Technology transfer/Interest/fees
for lease of machinery and equipment: 10%
(VAT exempt and 10% CIT)
Other business or production activities
(where contract value is not separated by
the activities): 4.5% (2.5% VAT and 2%
CIT)

Construction, installation (not including


materials and/or machinery and equipment
provided): 7% (5% VAT and 2% CIT)

Construction, installation (including


materials and/or machinery and equipment
provided): 5% (3% VAT and 2% CIT)

Services: 10% (5% VAT and 5% CIT)

Trading: 2% (1% VAT and 1% CIT)

FCT applies at various rates, depending on the


nature of the contract/project. Where several
rates could apply to a composite contract, and it
is not possible to determine which rates apply to
which part, the tax authorities may apply the
highest rates to the whole contract. Current
FCT rates are:

Vietnam: Summary of the Tax System (continued), August 2007

37

Foreign contractors who do not adopt the


VAS and VAT by the deduction method:

Depreciation of fixed assets: straight line


method. Accelerated method is also permitted
under certain conditions.

Interest costs calculated on the basis of the


interest paid on loans from credit institutions
or other lenders, but not more than 1.2 times
the lending rate of commercial banks.

Advertising, promotion and other expenses

Deductible expenses, inter alia, include:

These contractors are subject to FCT which is


calculated on a presumptive basis. This means
that withholding tax rates are determined based on
certain presumed profit and value added
percentages. If FCT applies, it is the responsibility
of the Vietnamese contracting party or project
owner to register the contract with the tax
authorities, withhold the applicable FCT prior to
making payments to the foreign contractor, and
remit the tax to the tax authorities on the foreign
contractors behalf.
3.
Corporate Income Tax
Taxable income defined as total revenue from
production, trading and service activities, including
taxable incomes from overseas production, trading
and service activities, less total deductible
expenses of the enterprise.

b)

VAT under the deduction method, but where their


accounting records for the projects/contract in
Vietnam are not sufficient for determination of a
net profit for the calculation of 28% CIT, the CIT
may be calculated based on the presumed FCT
rate.

Nature of the Tax

FCT does not apply to payments of interest on


loan agreements signed with foreign lenders
before 1 January 1999, subject to certain
conditions.

Business establishments, including cooperatives,


newly set up as investment projects are eligible to
tax rates of 20% (first 10 years), 15% (first 12
years), or 10% (first 15 years) depending on their
classifications in the prioritized sectors and their
localities as regulated by the Investment Law.
In addition, tax exemptions all these
establishments are granted for up to four years
after taxable income is generated, and a 50%
reduction of the payable tax amount for up to nine

Business establishments newly set up as


investment projects and relocated business
establishments shall enjoy the tax exemption and
reduction.

a)

Tax deductions and exemptions are granted to:

individuals that have income derived from


investments in securities in Vietnam; and

Tax Deductions and Exemptions

1
2
3
4
5

Grade

Ratio of remaining income to


expenses
up to 15%
Above 15% to 30%
Above 30% to 45%
Above 45% to 60%
Above 60%

0%
10%
15%
20%
25%

Rate

Standard rate: 28%


Precious natural resources and oil
sector:28%- 50%
Transfer of land use right; transfer of land
rent right: standard rate + progressive
surcharge; specified surcharge as follows:

Rates

Taxable income from land use right and land

Vietnam: Summary of the Tax System (continued), August 2007

38

Deduction method, whereby VAT payable


shall be the difference between output VAT
and input VAT.

Two methods of VAT payment are:

For imports, base includes the import price, import


duty (if any) and special consumption tax (SCT)
(if any).

For domestic goods and services, tax is calculated


on before-VAT price.

4. Value Added Tax


Goods and services for the purposes of
production, business, or consumption in Vietnam
are subject to VAT.

are capped at 10% of reasonable expenses.

Nature of the Tax

Other cases of tax exemption: income from the


implementation of contracts for scientific research
and technological development, scientific and
technological information services; income from
technical services in direct service of agriculture;
income from sale of products turned out by new
technologies applied for the first time in Vietnam
during the first year of application of the new
technology in production; income from sale of
products during pilot production period of up to
6 months; income from job training activities
exclusively for ethnic minority people, income from
production, service provisions of business
establishments set up exclusively for the disabled.

c)

Agricultural, animal, husbandry, and marine


products which have not been processed or are
semi-processed.
Machinery, equipment, materials or means of
transportation which can not be produced
domestically and are required to be imported to
use directly in scientific research and technological
development and to form fixed assets. Leased
airplanes, drilling rigs and vessels.

Products being species of plants and animals.

Goods and services not subject to VAT, inter alia,


include:

Business establishment investing in building of


new production chains, expansion of production
scale, renewal of technologies, improvement of
ecological environment, raising production
capacity are eligible for tax exemption for income
generated by this investment for up to four years
and a reduction of 50% for up to seven
subsequent years.

b)

subsequent years.

Tax Deductions and Exemptions

Rates

Cost of leveling and reclaiming land


Investment cost of infrastructure and
architectural buildings on land and the
value of those buildings
Appropriate expenses provided by laws

b)
c)

d)

0%: applied for export goods and


services (including certain services
provided to export processing enterprises in
Vietnam), except the followings: goods and
services provided directly to international
transportation; reinsurance services being
re-insured outside Vietnam; credit services,
financial investment and securities invested
overseas and certain exported unprocessed
minerals.
5%: applied for
Clean water used for production and living
consumption; fertilizer and ores to produce
fertilizer. Pesticides; medical equipment,

a)

b)

Expenses of acquiring land use right and


land rent right:
Original price of land transferred
Compensation for loss on land not yet
computed into land use payment
Compensation for loss of plantation on land
Moving allowance to new locations
Cost of moving tombs
Other allowances for land clearance
Relevant fees and charges provided by
laws.

a)

rent right transfer is the actual price paid for the


transfer.
Expenses of land use right and land rent right
transfer are:

Vietnam: Summary of the Tax System (continued), August 2007

39

Direct method, whereby VAT payable is


calculated on value added of VATable good or
service.

The time-limit for declaration of input VAT


shall be no more than 3 months from the
declaration date of the month when input tax
was incurred.

Year-end VAT return is no longer required.


Annual VAT Adjustment Declaration is
required to be submitted by taxpayers to the
tax department on or before 28 February of
the subsequent year, if there is any
adjustment of input/output VAT for the
relevant year.

Export goods and services subject to tax


credit on inputs should be certified by the
Customs as the actual exportation, and
attached with contacts of sale and/or
processing or supplying services to foreigner
parties. Payments, including off-set payments,
should be made via banking system.

Export:

Monthly VAT declarations and monthly


payments of VAT must be submitted/paid to
the tax department on or before the 25th day
of the subsequent month.

Compliance:

Input VAT deduction:

Nature of the Tax

Technology transfer, software (excluding exported


software)
International transportation, and reinsurance
services being re-insured outside Vietnam.
Postal and telecommunication services and
popularization of internet under the governments
program.
Some exported raw minerals, including crude oil,
stone slabs, sand and rare earth; precious stones;
manganese ores, tin ores, iron ores, chromic ores,
emanate ores and apatite ores
Products being artificial organs used for
replacement of organs of patients; crutches,
wheelchairs and other specialized appliances for
the disabled

Life insurance; student insurance and personal


insurance services.

Text books for students; scientific and technical


books.

Credit services and investment fund services.

Transfers of land use right.

Tax Deductions and Exemptions

Rates
certain pharmaceutical chemical products,
medicines, materials used to produce
preventive and curative medicines; certain
printing products except printing of money;
books of all types except VAT exempt
books ; magnetic tapes, disks; not-yet
processed agricultural products; sugar and
by-products of sugar production including
sugar sediment and residue; products
made from jute, sedge, bamboo and thatch;
semi-processed cotton; feed for cattle,
poultry and other domesticated animals;
technological and scientific services;
services directly serving agricultural
production; coal of all types, stone, sand,
gravel.
Certain basic chemicals; mechanical
products (except for consumption
mechanical products); moulds of all types;
explosive materials; grindstones; newsprint;
pressurized spray canisters; rubber latex in
semi-processed form; colophony in semiprocessed form; artificial hard board;
industrial concrete products as bridge beam
and house frames, concrete pillars,
concrete high- tension poles, concrete
culvert pipeline, concrete boxes of all types,
panel and non- standardized prefabricated
building components, concrete products;
tire and sets of tires and tubes of size 90020 or more; neutral glass tubes; net, rope
and fiber for weaving fishing net.
Products from metallurgy, rolling and
drawing of ferrous, non- ferrous and
precious metals, except for imported gold.
Automatic data processing machines and
their parts and components.
Maintenance, repair and restoration of
historical or cultural relics, museums; repair
of machines, equipment and means of
transportation; transportation, loading and

Vietnam: Summary of the Tax System (continued), August 2007

40

Nature of the Tax

Tax Deductions and Exemptions

c)

Rates

10% applied for:


Petroleum, gas; ore and other minerals;
Commercial electricity; electronic products.
mechanical consumer products;
appliances; Chemical products (excluding
basic chemicals) and cosmetics; electrical
conductors, telephone lines and other types
of conductors (except for wire being a new
product of the rolling or drawing phase);
welding rods; fibre, cloth, garments and
embroidery products; disposable nappies
and sanitary napkins; paper and paper
products (excluding newsprint); leather and
imitation leather products; milk, cakes,
candy, beverages and other processed
foodstuffs (except for types of foodstuffs
subject to the five per cent VAT rate);
porcelain and terracotta; glass, rubber,
plastic, wood and wooden products;
cement, bricks, tiles and other building
materials (except for products in the five
per cent VAT rate group);
Construction and installation; sale or
transfer of houses and infrastructure
facilities of establishments to which the
State allocates or leases land or which
receive the land use right from other
entities to invest in houses and
infrastructures for sale or transfer; leasing
technical infrastructure facilities by
establishments to which the State allocates
or leases land or which receive the land use

unloading; dredging of channels,


waterways, river ports and seaports,
recovery of sunken property and salvage.
Distribution and screening of video films,
except documentary video films.

Vietnam: Summary of the Tax System (continued), August 2007

41

Special Consumption Taxes (excise tax)

For bottled liquors, bottled beer and canned beer

Taxable price for processing goods is determined


based on the selling price (exclusive of SCT and
VAT);

Sale price is VAT exclusive price

SCT calculation price = sale price / (1 + tax rate).

SCT payable= SCT calculation price x SCT rates

Tax base is the tax-exclusive sale price, which is


calculated as follows:

5.

Nature of the Tax

Tax Deductions and Exemptions

Rates

Cigarettes
Spirits from 40% and above
Spirits from 20% to below 40%
Spirits below 20%
Canned and bottled beer
Draught beer
Automobiles of 5 seats or less
Automobiles of 6 seats to 15
seats

Rates of SCT
Goods and Services
Cigars

55%
65%
30%
20%
75%
30%
50%
30%

SCT rates
65%

right from other entities to invest in


infrastructure in industrial, high-tech or
other economic zones for lease.
Postal, telecommunication and internet
services, except postal and
telecommunication services and
popularization of internet under the
Governments program.
Leasing houses, offices, warehouses,
yards, factory buildings, machinery,
equipment and means of transportation.
Legal consultancy services and other
consultancy services; auditing and
accountancy services; survey and design
services; insurance, including insurance
broking (except for the types of insurance
not subject to VAT); photography and
video/tape services; hotels, tourism,
restaurants services; goods and services
subject to excise tax; gold, silver and
gemstone, except for imported gold;
shipping agencies; broker services; repair
and maintenance services (except for
services subject to 5%)..
Other goods and services.

Vietnam: Summary of the Tax System (continued), August 2007

42

a)

Import Duty
Import taxable price is the actual price
payable at the first import border gate and
determined by one of 6 methods pursuant to
the contract, consistent with international
undertakings.

Deadline for submission of SCT finalization is 45


days calculated from the calendar year end; and
deadline for payments of monthly SCT is no later
than the 25th day of the following month.
6. Import and Export Duty

Goods and services that are subject to SCT


a) Cigarettes, cigars
b) Beer
c) Alcoholic beverages other than beer
d) Cars (including cars of less than 24 seats sold
to export processing enterprises);
e) Gasoline
f) Air conditioning equipment (90,000 BTU or
less)
g) Playing cards
h) Votive paper and products
i) Massage, karaoke, and dance-hall business
j) Casino businesses and jackpot machines
k) Operating betting entertainment
l) Golf course membership and playing fees
m) Lotteries

SCT calculation price = ( Sales price Value of


empty bottles or can)/ (1+ SCT rates)

Nature of the Tax

Duty exempt imports and exports include:

Temporary imports for re-export or temporary


exports for re-import.

Goods which are moveable assets.

Exports and imports of foreign organizations and


individuals enjoying diplomatic immunities in
Vietnam at levels stipulated by the Government
consistent with international treaties of which the
Socialist Republic of Vietnam is a member.

Goods imported for processing for a foreign party


which are exported or goods exported overseas for
processing for a Vietnamese party which are reimported pursuant to a processing contract.

Tax Deductions and Exemptions

Rates

15%

25%
25%
10%

30%

40%
70%

10%

15%

15%

Ordinary rates apply to non-MFN (Most


Favored Nation) imports and are equal to
1.5 times preferential rates.
Preferential rates apply to MFN (and most)
imports.

Import duty rates which may be normal,


preferential or especially preferential rates.
Preferential rates are: 0%, 0.5% 1%, 3%, 5%,
7%, 10%, 12%,15%, 18%, 20%, 25%,30%,
35%,40%, 45%, 50%, 60%, 70%, 80%, 90%,
100%, 120% and maximum of 150%. Details
are as follows:

Automobiles of 16 seats to
under 24 seats
Air conditioner from 90,000
BTU or less
Assorted types of petrol,
naphtha, reformat components
and other used to mix in petrol
Playing card
Votive paper
Services
Dancing halls, massage
lounges , karaoke
Casino, jackpot
Operating betting entertainment
Golf course membership and
tickets
Lotteries

Vietnam: Summary of the Tax System (continued), August 2007

43

Nature of the Tax

Agricultural species imported for investment


projects as regulated.
Goods imported for BOT and subcontractors of
BOT, BTO, BT include:
a) Machinery and equipment to form fixed
assets, including those used for exploration,
design and construction projects;
b) Specialized means of transportation for hightechnology projects and means of
transportation used for transporting

Goods which are imported or exported within the


quantity of duty-free baggage of individuals upon
exit from or entry into Vietnam.
Goods which are imported in order to form fixed
assets of a project which is an encouraged
investment or of a project which is funded by
Official Development Aid (ODA) as stipulated in
Decree 149/2005/ND-CP, comprising
a) Equipment and machinery;
b) Specialized means of transportation of a
technological line and means of transportation
used for transporting employees;
c) Components, details, separate sections,
spare parts, fittings, moulds and accessories
accompanying the equipment, machinery and
specialized means of transportation referred
to in sub-clauses (a) and (b) of this clause,
d) Raw materials and materials used to
manufacture equipment and machinery in
technological lines or to manufacture
components, details, separate sections, spare
parts, fittings, moulds and accessories
accompanying the equipment and machinery
referred to in sub-clause (a) of this clause;
e) Construction materials which are not yet
domestically produced;

Tax Deductions and Exemptions

Specially preferential rates apply to imports


from countries with which Vietnam has
signed agreements to apply such rates
(AFTA/CEPT, ASEAN China, ASEAN Korea).

Rates

Imported quantity beyond a certain level.


Import dumping.
Imports subsidized by exporting country,
thus hindering domestic production.
Imports from countries imposing strict
import tax policy on Vietnamese exports.

Discretionary additional tax is imposed in case


of:

Vietnam: Summary of the Tax System (continued), August 2007

44

Nature of the Tax

employees;
Components, details, separate sections,
spare parts, fittings, moulds and accessories
accompanying the equipment, machinery and
specialized means of transportation,
d) Raw materials and materials used to
implement projects and their operations.
First time import of certain equipment and goods
stipulated by Decree 149/2005/ND-CP to form
fixed assets of encouraged investment or ODAfunded investment in hotels, offices, apartments
for lease, residential housing, commercial centers,
technical services, supermarkets, golf courses,
tourist resorts, sporting resorts, entertainment
areas, medical diagnosis and treatment
establishments, and entities providing training,
cultural, financial, banking, insurance, auditing,
and consultancy services.
Goods imported in order to support petroleum
operations, comprising:
a) Equipment, machinery, replacement
accessories and specialized means of
transportation which are essential for
petroleum operations;
b) Materials which are essential for petroleum
operations and which cannot yet be produced
domestically.
Shipbuilding enterprises are exempted from export
duty for ship products and import duty for imported
machines, equipment to form fixed assets as
defined Ministry of Science and Technology;
materials, semi-products that cannot produced
domestically.
Imported materials for software development.
Goods which are imported for direct use in
scientific research and development of technology,
including machinery, equipment, accessories,
c)

Tax Deductions and Exemptions

Vietnam: Summary of the Tax System (continued), August 2007


Rates

45

Export duty

Crude oil
Wood and wood products
Cashew nuts
Ores
Coal, lignite, peat, coke

Commodities subject to current export duty


include:

Export taxable value is determined as contract


selling price at export gate (FOB, DAF), not
including insurance fees and transportation fees.

b)

Nature of the Tax

materials and means of transportation which


cannot yet be produced domestically, and
technology which is not available domestically; and
scientific books and data.
Raw materials, materials and component parts
imported for production of projects on the list of
sectors where investment is especially encouraged
or on the list of regions with especially difficult
socio-economic conditions (Decree 149/2005/NDCP referred) or production of components,
mechanic, electric and electronic items shall be
exempted from import duty for a duration of five
years from the commencement of production.
Goods which are manufactured, processed,
recycled or assembled in non-tariff zones without
using raw materials or component parts which are
imported from abroad, upon import thereof into the
domestic market; in the case where raw materials
and component parts imported from abroad are
used, upon import of goods into the domestic
market, import duty must be paid on that part of
the goods which is imported raw materials or
component parts which form a constituent part of
such goods.

Tax Deductions and Exemptions

Rates

Crude oil: 4% (subject to changes from time


to time)
Wood and wood products: 5%, 10%
Cashew nuts: 4%
Minerals: 1%, 2%, 5%, 10%, 20%
Gemstones: 1%, 3%, 5%
Metallic wastage: 35%, 40%, 45%
Semi-product metals: 2%, 5%
Hides, skins, live animals: 10%
Botanic materials (rattan, etc.): 3%, 10%

Export duty rates:

Vietnam: Summary of the Tax System (continued), August 2007

46

Precious and semi-precious gemstones


Metallic wastage
Zinc, lead, aluminum bar
Uncompleted metals
Hides, skins, live animals
Botanical materials (rattan, etc)
Profit Remittance Tax

Category of land is determined based on following:

quality

location

region (field, middle, mountain)

weather

irrigation supply and drainage situation

9.
Slaughter Tax
Based on market value of slaughtered buffaloes,
cows and pigs
10.
Tax for Use of Agricultural Land
Based on area and category of agricultural land,
the tax rate is calculated in paddy.

8. License Tax
Annual license tax for all enterprises (the Decree
75/2002/ND-CP dated 30 August 2002 and
various Circulars of the MOF)

7.

Nature of the Tax

barren hills and land used for agricultural


production
reclaimed land used for:
annual crops: 5 years; 7 years of exemption will
be applied for marsh and sea-encroaching
areas.

a)
b)

10.1. Exemptions according to the Law on agricultural


tax (1993) and its amendment in 1999:

Certain exemptions and 50% reductions of license tax


are available.

Tax Deductions and Exemptions

Rates

Registered capital from more than VND5


billion to less than VND10 billion: VND2
million.
Registered capital from more than VND2
billion to less than VND5 billion: VND1.5
million.

1
2
3
4
5

Category of land

Annual crops
Tax (kg paddy/
hectare)
550
460
370
280
180

Abolished (Circular 15/1999/TT- BTC dated 4


February 1999 of the Ministry of Finance

Registered capital of less than VND2 billion:


VND1 million.

Registered capital more than VND10 billion:


VND3 million.

Annual license tax is calculated based on the


registered capital of the relevant enterprise, as
follows:

Abolished from 1 January 2004.

Vietnam: Summary of the Tax System (continued), August 2007

47

11.
Land and housing tax
Ordinance on Residential HousingLand Tax

Tax is calculated in paddy but collected in dong


currency (paddy price is regulated by provincial
peoples committees).

Category of land will be valid in ten years.

Nature of the Tax

Tax exemption and reduction due to calamities;


tax on agricultural land use would be exempted or
reduced in crop basis as follows:
damage from 10-20%: tax reduction according
to the rate of damage
damage from 20-30%: reduction of 60%
damage from 30-40%: reduction of 80%
damage of 40% or more: tax exempted (100%)

d)

Exemptions are:

10.2. Exemptions according to Decree 129/2003/NDCP dated 3 November 2003 (effective during 2003-10)
on the exemption from agricultural tax

Exemption within bounds of agricultural land areas


provided by legal regulations on land: Household,
individual farmer is granted land use right for
agricultural production by the state, by agricultural
forest cooperatives under long term contracts, or
contribute granted land use right to establish
agricultural co-operatives.

Exemption 100%: poor household, agricultural


households in communes of very difficult social
economic conditions.

Exemption 50%: Other cases.

target groups of social policies


for farmer households in mountains, border,
and island areas and minorities.
invalid or elderly farmer households without any
support.
martyr families that are being subsidized by the
state
households of war invalids of the level 1/4 and
2/4 and sick soldiers of the level 1/3 and 2/3.
Tax reduction for other types of household of
difficulties, which will be considered.

c)

perennial crops: during capital construction plus


3 years from time crops start yielding output; 6
years for marsh and sea-encroaching areas.

Tax Deductions and Exemptions


6

Rates

Tax ( kg
paddy/hectare)
650
550
400
200
80

50

Land used for buildings/housing in the cities

As for wood tree and perennial trees that are


harvested one time only, tax rate is 4% of the
output value.

1
2
3
4
5

Category of land

Perennial and long- term crops

Vietnam: Summary of the Tax System (continued), August 2007

48

Land user fee will be determined by the location of


land, prevailing land price, and the duration of land
use.

Land user fee will be charged at the time the state


grants the right to use land and again for the
issuance of Land Use Right Certificate. Thereafter,
land user fee will be charged if the purpose of the
land use is changed, and for building industrial
parks, high tech zones, and economic zones.

All land belongs to the state, and is granted for use


for specified period to individuals and corporations.

12.
Land Use Charge
Decree 198/2004/ND-CP dated December 3, 2004
and Circular 117/2004/TT-BTC dated December 7,
2004.

Temporarily not to collect tax on housing.

Implementation of this tax has been temporarily


suspended under the current provisions of the
Ordinance on Residential HousingLand Tax; the
ordinance is to be supplemented with provisions
on implementation when conditions for collection
of the housing tax are deemed to have been
satisfied.

dated July 31, 1992 (as amended on June 3,


1994), Decree 94/CP dated 25 August 1994,
Circular 83TC/TCT dated 7 October 1994 and
Circular 71/2002/TT-BTC dated 19 August 2002.

Nature of the Tax

Land used under investment promotion schemes


provided by the law on investment.
Land used for high-rise buildings for industrial
zone worker and school/college dormitories for
students. Land used to build houses for minority
groups in special difficult-to-live areas and for
displaced people due to disasters.
Land used for building public works with business
orientation in education, health care, sport, and
culture.
Land used within the originally granted land
(exemption applies also for changes in land use
purposes) for revolutionaries armed forces heroes,
Vietnamese heroic mothers, labor heroes, martyr
families, and disabled soldiers who lost 81% and
more of working capability. under the decision of
the Prime Minister.
Land used by household/individuals who were
granted land under the old regime with Land Used
Right Certificate issued before 15/10/1993.
Outstanding fees from the old regime are
exempted.

Exemptions :

Land authorised for public works; religious sites.


Temporary exemptions are:

Land used for building of administrative offices.

Land in mountainous areas which are exempted


from the agricultural land use tax.

Residential land of war invalids of level 1/4 and 2/4


level and families of fallen combatants who are
entitled to state subsidies

Residential land of disabled persons, minors and


elderly people without family support.
Tax reduction or exemption will be applied for
households in difficulty due to natural disasters, wars or
other contingencies.

Tax Deductions and Exemptions

Rates
and towns: tax rate is between 3 times and
32 times of the highest level of agricultural
tax recorded in the same region.
Land used for buildings/housing in the
suburb of cities and towns and beside
highways or main roads: tax rate is
between 1.5 times and 2.5 times of the
highest level of agricultural tax recorded in
the same region.
Land used for buildings/ housing in the rural
and mountain areas: tax rate is 1 equal to
the highest level of agricultural tax recorded
in the same region.

Vietnam: Summary of the Tax System (continued), August 2007

49

13.
Land Use Right Transfer Tax
Based on the transfer of land use right.

Nature of the Tax


Other cases according to decisions of the Prime
Minister.
50% reduction for land use within the originally
granted land for the poor household.
20% reduction for land use by enterprises
relocated due to government planning/zoning.
Land granted within the originally granted land for
revolutionaries which are not in the list of the
exemption list noted above.
Other cases according to decisions of the Prime
Minister.

Economic entities that are provided land by the


Government to develop infrastructure and which
paid land user charge
A 50% reduction is given for:
War invalids of level 1/4 and 2/4 or sick soldiers of
level 1/3 and 2/3
Martyr households that are subsidized by the State
Handicapped, pre-mature and elderly people with
no support

Exemptions are (Law No 17/1999/QH10 promulgated


on 21 December 1999):

Transfer of land use rights by households or


individuals moving to new economic zones,
mountainous areas, or islands under the decision
of competent authorities

Women who are a Vietnamese Heroic Mother

Transfers in communes of mountainous areas or


islands as regulated by the Government

Swaps between agricultural, forestry, fisheries and


salt production land

Reduction:

Tax Deductions and Exemptions

Rates

Up to 15%
More than 15% to 30%
More than 30% to 45%
More than 45% to 60%
More than 60%

After Tax Profits/Expenses

0%
10%
15%
20%
25%

Tax
Rate

In addition, the remaining income is subject to


Corporate Income Tax as follows:

Tax rate of 28% (Taxable Income= Total (sale)


turnovers total deductible expenses).

Business entities: according to Decree


164/2003/ND-CP dated 22 December 2003:
Subject to Corporate Income.

Households/ individuals:

For land used for agricultural, forestry,


fisheries and salt production, the tax rate is
2%

For other types of land: tax rate is 4%

Vietnam: Summary of the Tax System (continued), August 2007

50

Tolls are paid in relation to State administrative


management.

Fees are paid for services.

15.
Fess and Tolls
Ordinance on Fees and Tolls No 38/2001/PLUBTVQH10 dated 28 August 2001, Decree
57/2002/ND-CP dated June 3, 2002 and Decree
24/2006/ND-CP of March 6, 2006 amending
Decree 57.

14,
Registration Fees
Assets of organizations and individuals in the
groups that have to register the ownership and
user-rights are subject to registration fees (Decree
47/2003/ND-CP dated 12 May 2003).

Nature of the Tax

Tax Deductions and Exemptions

Housing and land: 1%


Boats, ships: 1% (off-shore fishing boats:
0.5%)
Automobiles, motorcycles, hunting and
sport guns: 2%

Rates

Fees are levied in the following fields, inter alia:

Agriculture, forestry, marine products

Industry, construction

Trade, investment

Transportation

Etc.
Tolls are levied in the following fields, inter alia:

Immigration

Asset registration

Business registration

Etc.

The maximum level of above fees shall be


VN500 million per asset.

Vietnam: Summary of the Tax System (concluded), August 2007

- 51 -

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