Vietnam economy is a business economy which
depends much on fares, and undertakings on FDI. The economy positions sixth in
Southeast Asia, and fifty-seventh in the worldwide business sector. Vietnam is
one of creating nations with quick development rate, around 7% for every
year.
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| Vietnam economy structure |
As
being a business economy, very subject to rough fares and remote immediate
speculation (FDI), Vietnam is the sixth biggest economy in Southeast Asia and
the 57th one on the planet, regarding ostensible terrible household item in
2011. As far as ostensible horrible residential item for every capita, Vietnam
economy positions 128th. The Communist Party of Vietnam has aim to manufacture a
business sector economy framework in the nation. Since 1976, in light of the
fact that there is one gathering authority, the good and bad times of Vietnam
economy depends much on the pioneers and arrangements which are given by the
Communist Party and the legislature. As per Pwc's gauge in right on time 2008,
economy of Vietnam could turn into the 28th biggest economy on the planet with
the Purchasing Power Parity (PPP) arriving at over Us$850 billion in 2025. By
2050, Vietnam economy will remained in the main 20 biggest economies on the
planet, having the most noteworthy development rates among the recently rising
economies, and arriving at 70% of the UK economy. Then again, Vietnam financial
development rate regulated in the second stage after 1997 (in 1998 rose just
5.76 % and 4.77 % in 1999), and from 2008, particularly since 2011 expanded by
6, 24 %, 5.25 in 2012. These figures are short of what that in five other
Southeast Asian district nations, and lower than the normal figure of South
East Asia - Pacific (as indicated by World Bank in 2013, Vietnam expanded by
5.3 %, while the locale climbs 7.2 %).
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| Viet Nam Export |
Economy in Vietnam underwent five periods: before 1954, 1954 – 1975, 1976 – 1986, 1986
– 2006, and 2006 – 2012. Vietnam economic in French colonial period was the
most prosperous in 1938, 60% higher than that in 1960. In 1938, the GDP of
Indochina was of 1,014 billion of Indochina currency, in which industry
accounted for 22%. In the second period, Vietnam economic development of the
Democratic Republic of Vietnam increased 6% per year (average GDP per capita
rose by about 3%), while the Republic of Vietnam economy had an average growth
rate of 3.9% (GDP per capita in the increase of 0.8%). Specifically, in 1965-75
period, the economy of the Republic of Vietnam developed in negative trend,
mainly due to the widespread warfare in the region. In the third period, the
economic mainstream of Vietnam during this period was the socialist
industrialization, constructing the socialist collective mode of working people.
This period is referred to the term “subsidy”. The economy operated under the
centralized planning. The State planned all economic activities, enterprises
operating under the state’s plans. Private sector was gradually removed. In
1986, an Economic Reform was launched by the government. This reform
contributed to the changes in economic management. In the next period, Vietnam
entered its transitional economy, from a central planned economy to market
mechanism, but still limited with the phrase “market economy under the State’s
management”. The 1990s and early 2000s were periods when Vietnamese economy
positively integrated in the global economy, especially participating in the
World Trade Organization (WTO) in 2006, and singing the US – Vietnam Bilateral
Trade Agreement in 2001.
Vietnam owns a mixed economy, but the state
intervention in the economy is still at a high level. Currently, the State of
Vietnam has been applying measures of administrative price control by requiring
economic groups and corporations to adjust levels of investment, gasoline
price, and prices of steel, cement, and coal. Vietnam economic system consists
of state economy, collective economy, private economy (individual, smallholder,
and private capital), state capitalist economy, and foreign investment economy.
According to preliminary data of the General Statistics Office in 2007, the
state economy was the largest part accounting for 36.43% of Vietnam GDP,
followed by the individual economy with 29, 61%, foreign investment economy
with 17.66%, and private economy with 10.11%. Vietnam economic sectors include
Agriculture, forestry and fisheries; Industry (mining and exploiting mineral,
processing, constructing and producing building materials, manufacturing and
distributing gas, electricity, and water); Commerce, services, finance,
tourism, culture, education, and health. The main products of Agriculture are
rice, coffee, rubber, tea, pepper, soybeans, sugar, bananas, peanuts, and
seafood. Those of Industry are food processing, textiles, footwear, machinery,
mining, construction industry, and electricity production. In industry of
Services, the major products are tourism, restaurants, hotels, education,
health care, and entertainment, etc.
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| Vietnam Stock |
In the GDP of Vietnam estimated in 2012,
agriculture accounted for 21.5%, while industry made up 40.7%, and services
acquired 37.7%. There are seven economic regions in Vietnam, including
Northwest, Northeast, Red River Delta, North Central Coast, South Central Coast
and Highlands, Southeast, and Mekong Delta. Besides, in three parts of the
country, there are four key economic regions seen as motivations for the
economic development of the country and region. In coastal area, there are 20
economic zones with incentives to attract domestic and foreign investments.
Along the borders with China, Laos, and Cambodia, there are more than 30 border
economic zones, including nine key border-gate economic zones (Mong Cai, Lang
Son – Dong Dang, Lao Cai, Cau Treo, Lao Bao, Bo Y, Moc Bai, An Giang, and Dong
Thap). Economic development of Vietnam is uneven between regions, and between
urban and rural areas.
In terms of macro economy and finance, Vietnam
now has two stock exchanges, one in Hanoi and another in Ho Chi Minh City. At
HOSE, there are 173 listed stocks with VN-Index used. There are also 68 bonds
and 4 fund certificates. Foreigners are allowed to buy or sell securities in
Vietnam. So far, 2006 is the most exciting year of Vietnam
stock market. Vietnam has 43 domestic commercial banks and 4
branches of foreign banks. The State Bank of Vietnam is the central bank of
Vietnam having offices in all provinces and cities. In term of economic
integration, Vietnam became member of world trade organizations: WTO, ASEAN,
APEC, AFTA, and FAO. Vietnam has announced the establishment of strategic
partnerships with Russia (2001), Japan (2006), India (2007), China (2008),
South Korea, Spain (2009), United Kingdom (2010), Germany (2011), France and
Italy (2013). Of these, some relationships with Germany, China and Russia have
been raised to “comprehensive strategic partnership”. Since 2009, Vietnam has
established “comprehensive partnership” relation with Australia.
Source: AloTrip
