Vietnam:
Economy

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Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. Economic stagnation marked the period after reunification from 1975 to 1985. In 1986, the Sixth Party Congress approved a broad economic reform package that introduced market reforms and set the groundwork for Vietnam's improved investment climate. Substantial progress was achieved from 1986 to 1997 in moving forward from an extremely low level of development and significantly reducing poverty. The 1997 Asian financial crisis highlighted the problems in the Vietnamese economy and temporarily allowed opponents of reform to slow progress toward a market-oriented economy. GDP growth averaged 6.8% per year from 1997 to 2004 even against the background of the Asian financial crisis and a global recession. Since 2001, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The economy grew 8.5% in 2007. Vietnam's membership in the ASEAN Free Trade Area (AFTA) and entry into force of the US-Vietnam Bilateral Trade Agreement in December 2001 have led to even more rapid changes in Vietnam's trade and economic regime. Vietnam's exports to the US increased 900% from 2001 to 2007. Vietnam joined the WTO in January 2007, following over a decade long negotiation process. WTO membership has provided Vietnam an anchor to the global market and reinforced the domestic economic reform process. Among other benefits, accession allows Vietnam to take advantage of the phase-out of the Agreement on Textiles and Clothing, which eliminated quotas on textiles and clothing for WTO partners on 1 January 2005. Agriculture's share of economic output has continued to shrink, from about 25% in 2000 to less than 20% in 2007. Deep poverty, defined as a percent of the population living under $1 per day, has declined significantly and is now smaller than that of China, India, and the Philippines. Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one-and-a-half million people every year. In an effort to stem high inflation which took off in 2007, early in 2008 Vietnamese authorities began to raise benchmark interest rates and reserve requirements. Hanoi is targeting an economic growth rate of 7.5-8% during the next four years.
GDP (purchasing power parity)	Definition - World rank and map $221.4 billion (2007 est.)
GDP (official exchange rate)	Definition $70.02 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 8.5% (2007 est.)
GDP - per capita	Definition - World rank and map $2,600 (2007 est.)
GDP - composition by sector	Definition agriculture: 19.5% industry: 42.3% services: 38.2% (2007 est.)
Labor force	Definition 46.42 million (2007 est.)
Labor force - by occupation	Definition agriculture: 55.6% industry: 18.9% services: 25.5% (July 2005)
Unemployment rate	Definition - World rank and map 5.3% (2007 est.)
Population below poverty line	Definition 14.8% (2007 est.)
Household income or consumption by percentage share	Definition lowest 10%: 2.9% highest 10%: 28.9% (2004)
Distribution of family income - Gini index	Definition - World rank and map 37 (2004)
Inflation rate (consumer prices)	Definition - World rank and map 8.3% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 40% of GDP (2007 est.)
Budget	Definition revenues: $18.26 billion expenditures: $19.63 billion (2007 est.)
Public debt	Definition - World rank and map 42.8% of GDP (2007 est.)
Agriculture - products	Definition paddy rice, coffee, rubber, cotton, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; poultry; fish, seafood
Industries	Definition food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, paper
Industrial production growth rate	Definition - World rank and map 17.1% (2007 est.)
Electricity - production	Definition - World rank and map 59.01 billion kWh (2007)
Electricity - consumption	Definition - World rank and map 51.35 billion kWh (2007)
Electricity - consumption per capita	Definition - World rank and map 596.3 kWh (2007)
Electricity - exports	Definition 0 kWh (2007)
Electricity - imports	Definition 0 kWh (2007)
Oil - production	Definition - World rank and map 319,500 bbl/day (2007)
Oil - consumption	Definition - World rank and map 271,100 bbl/day (2007 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 3.1 bbl/day (2007 est.)
Oil - exports	Definition - World rank and map 315,700 bbl/day (2007)
Oil - imports	Definition - World rank and map 271,100 bbl/day (2007)
Oil - proved reserves	Definition - World rank and map 3.3 billion bbl (2007 est.)
Natural gas - production	Definition - World rank and map 6.86 billion cu m (2007 est.)
Natural gas - consumption	Definition - World rank and map 6.86 billion cu m (2007 est.)
Natural gas - consumption per capita	Definition - World rank and map 80 cu m (2007 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2007)
Natural gas - proved reserves	Definition - World rank and map 184.7 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$6.722 billion (2007 est.)
Exports	Definition - World rank and map $48.07 billion f.o.b. (2007 est.)
Exports - commodities	Definition crude oil, marine products, rice, coffee, rubber, tea, garments, shoes
Exports - partners	Definition US 22.5%, Japan 12%, Australia 7.5%, China 6.2%, Germany 5.1%, Singapore 4.2% (2006)
Imports	Definition - World rank and map $52.28 billion f.o.b. (2007 est.)
Imports - commodities	Definition machinery and equipment, petroleum products, fertilizer, steel products, raw cotton, grain, cement, motorcycles
Imports - partners	Definition China 20%, Singapore 11.6%, Taiwan 10.9%, Japan 10.1%, South Korea 7.9%, Thailand 6.8%, Malaysia 4.1% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $19.74 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $21.69 billion (31 December 2007 est.)
Stock of direct foreign investment - at home	Definition $33.74 billion (2007 est.)
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $NA
Economic aid - recipient	Definition $5.4 billion in credits and grants pledged by the 2007 Consultative Group meeting in Hanoi (2007)
Currency (code)	Definition dong (VND)
Exchange rates	Definition dong per US dollar - 16,119 (2007), 15,983 (2006), 15,746 (2005), NA (2004), 15,510 (2003)
Fiscal year	Definition calendar year

Vietnam: Economy

Vietnam:
Economy