Economy - overview:
Vietnam is a densely populated developing country that has been transitioning since 1986 from the rigidities of a centrally planned, highly agrarian economy to a more industrial and market based economy, and it has raised incomes substantially. Vietnam exceeded its 2017 GDP growth target of 6.7% with growth of 6.8%, primarily due to unexpected increases in domestic demand, and strong manufacturing exports.
Vietnam has a young population, stable political system, commitment to sustainable growth, relatively low inflation, stable currency, strong FDI inflows, and strong manufacturing sector. In addition, the country is committed to continuing its global economic integration. Vietnam joined the WTO in January 2007 and concluded several free trade agreements in 2015-16, including the EU-Vietnam Free Trade Agreement (which the EU has not yet ratified), the Korean Free Trade Agreement, and the Eurasian Economic Union Free Trade Agreement. In 2017, Vietnam successfully chaired the Asia-Pacific Economic Cooperation (APEC) Conference with its key priorities including inclusive growth, innovation, strengthening small and medium enterprises, food security, and climate change. Seeking to diversify its opportunities, Vietnam also signed the Comprehensive and Progressive Agreement for the Transpacific Partnership in 2018 and continued to pursue the Regional Comprehensive Economic Partnership.
To continue its trajectory of strong economic growth, the government acknowledges the need to spark a ?second wave’ of reforms, including reforming state-owned-enterprises, reducing red tape, increasing business sector transparency, reducing the level of non-performing loans in the banking sector, and increasing financial sector transparency. Vietnam’s public debt to GDP ratio is nearing the government mandated ceiling of 65%.
In 2016, Vietnam cancelled its civilian nuclear energy development program, citing public concerns about safety and the high cost of the program; it faces growing pressure on energy infrastructure. Overall, the country’s infrastructure fails to meet the needs of an expanding middle class. Vietnam has demonstrated a commitment to sustainable growth over the last several years, but despite the recent speed-up in economic growth the government remains cautious about the risk of external shocks.
GDP (purchasing power parity):
$643.9 billion (2017 est.)
$605.7 billion (2016 est.)
$570.3 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 36
GDP (official exchange rate):
$216 billion (2017 est.)
GDP - real growth rate:
6.3% (2017 est.)
6.2% (2016 est.)
6.7% (2015 est.)
country comparison to the world: 20
GDP - per capita (PPP):
$6,900 (2017 est.)
$6,500 (2016 est.)
$6,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 158
Gross national saving:
28% of GDP (2017 est.)
30.7% of GDP (2016 est.)
27.5% of GDP (2015 est.)
country comparison to the world: 36
GDP - composition, by end use:
household consumption: 68.5%
government consumption: 6.6%
investment in fixed capital: 24.8%
investment in inventories: 2.9%
exports of goods and services: 98.6%
imports of goods and services: -101.4% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 15.9%
industry: 32.7%
services: 41.3% (2017 est.)
Agriculture - products:
rice, coffee, rubber, tea, pepper, soybeans, cashews, sugar cane, peanuts, bananas; pork; poultry; seafood
Industries:
food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones
Industrial production growth rate:
6.4% (2017 est.)
country comparison to the world: 31
Labor force:
56.46 million (2017 est.)
country comparison to the world: 12
Labor force - by occupation:
agriculture: 48%
industry: 21%
services: 31% (2012 est.)
Unemployment rate:
2.3% (2017 est.)
2.3% (2016 est.)
country comparison to the world: 19
Population below poverty line:
11.3% (2012 est.)
Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 30.2% (2014 est.)
Distribution of family income - Gini index:
37.6 (2008 est.)
36.1 (1998 est.)
country comparison to the world: 81
Budget:
revenues: $49.41 billion
expenditures: $61.14 billion (2017 est.)
Taxes and other revenues:
22.9% of GDP (2017 est.)
country comparison to the world: 131
Budget surplus (+) or deficit (-):
-5.4% of GDP (2017 est.)
country comparison to the world: 168
Public debt:
62.3% of GDP (2017 est.)
61.6% of GDP (2016 est.)
note: official data; data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
country comparison to the world: 70
Fiscal year:
calendar year
Inflation rate (consumer prices):
4.4% (2017 est.)
2.7% (2016 est.)
country comparison to the world: 164
Central bank discount rate:
9% (31 December 2012 est.)
15% (31 December 2011 est.)
country comparison to the world: 29
Commercial bank prime lending rate:
6.8% (31 December 2017 est.)
6.96% (31 December 2016 est.)
country comparison to the world: 120
Stock of narrow money:
$84.22 billion (31 December 2017 est.)
$73.48 billion (31 December 2016 est.)
country comparison to the world: 44
Stock of broad money:
$341.4 billion (31 December 2017 est.)
$299.2 billion (31 December 2016 est.)
country comparison to the world: 33
Stock of domestic credit:
$320.1 billion (31 December 2017 est.)
$277.3 billion (31 December 2016 est.)
country comparison to the world: 36
Market value of publicly traded shares:
$51.88 billion (31 December 2015 est.)
$46.07 billion (31 December 2014 est.)
$40.06 billion (31 December 2013 est.)
country comparison to the world: 51
Current account balance:
$2.794 billion (2017 est.)
$8.235 billion (2016 est.)
country comparison to the world: 31
Exports:
$194.6 billion (2017 est.)
$176.6 billion (2016 est.)
country comparison to the world: 28
Exports - commodities:
clothes, shoes, electronics, seafood, crude oil, rice, coffee, wooden products, machinery
Exports - partners:
US 19.4%, China 16.6%, Japan 7.9%, South Korea 6.9% (2017)
Imports:
$190.1 billion (2017 est.)
$162.6 billion (2016 est.)
country comparison to the world: 25
Imports - commodities:
machinery and equipment, petroleum products, steel products, raw materials for the clothing and shoe industries, electronics, plastics, automobiles
Imports - partners:
China 27.6%, South Korea 22.1%, Japan 7.9%, Taiwan 6%, Thailand 5%, US 4.4% (2017)
Reserves of foreign exchange and gold:
$38.75 billion (31 December 2017 est.)
$36.91 billion (31 December 2016 est.)
country comparison to the world: 45
Debt - external:
$91.79 billion (31 December 2017 est.)
$84.34 billion (31 December 2016 est.)
country comparison to the world: 52
Stock of direct foreign investment - at home:
$128.3 billion (31 December 2017 est.)
$115.4 billion (31 December 2016 est.)
country comparison to the world: 42
Stock of direct foreign investment - abroad:
$7.7 billion (31 December 2009 est.)
$5.3 billion (31 December 2008 est.)
country comparison to the world: 66
Exchange rates:
dong (VND) per US dollar -
22,784 (2017 est.)
22,355 (2016 est.)
22,355 (2015 est.)
21,909 (2014 est.)
21,189 (2013 est.)