Vietnam economy outline

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. 

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 %).

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.

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

Agriculture in Vietnam

With points of interest of incredible regular assets, Vietnam is one of the speediest creating nation beginning from agribusiness. Farming in Vietnam is one of the lance monetary areas in Vietnam, chiefly helping the financial improvement of Vietnam. 

Chicken farm

Farming is one of imperative Vietnam monetary parts. As of now, financial improvement depends much on horticulture. In 2009, the estimation of horticultural yield arrived at 71.473 trillion (contrasted and 1994's cost), expanded by 1.32% in examination to that in 2008, and represented 13.85% of the aggregate local item. The gravity of agribusiness in the economy decreases as of late, while other monetary divisions expand. The commitment of horticulture in making occupations is more noteworthy than its commitment in Vietnam GDP. In 2005, give or take 60% of the workforce was utilized in Vietnam horticulture, ranger service, and fisheries. Farming creation represents around 30% of fares in 2005. The liberalization of creation in horticulture, particularly rice generation in Vietnam helps Vietnam be the world heading nation of rice exporter (in 2013). The other critical farming items are espresso, cotton, peanuts, high elastic, sugar, and tea.

Mui Ne

Vietnam has great advantages to develop comprehensively. Natural conditions and resources allow Vietnam to develop a tropical agriculture. With a tropical climate, differentiation in North – South direction and terrain’s height affect the fundamental and seasonal structure of agricultural products in Vietnam. Differentiation in conditions of topography and soil both allows and requires the application of different cultivation in regions. In the midland and mountainous areas, strengths are perennials and large livestock. In plains, short crops, intensive cultivation, and aquaculture are main fields. With the nature of tropical natural monsoon, Vietnam always has to struggle for disasters, plant pests, and diseases. Vietnam is increasingly exploited effectively characteristics of tropical agriculture. Groups of plants and animals are distributed in accordance with the agro-ecological zones. The structure of the seasonal changes is important in structure of Vietnamese agriculture. Seasonality is better exploited by promoting transportation, widely applying advances of processing and storage Vietnam agricultural products. Exports of agricultural products (rice, coffee, rubber, fruits) are promoted significantly.

Rice exporting in Mekong Delta

To develop agriculture of Vietnam, modern agriculture of producing commodity contributes greatly to increase the efficiency of tropical agriculture. Nowadays, in Vietnam agriculture, agriculture autarky exists in parallel with traditional production, agriculture commodities, and modern technology. The agriculture autarky is changing to agriculture commodities. During the period, characteristics of this economic form are small-scale production, simple working tools, main labor force, and low productivity. Besides, smallholder agriculture is autarkical (each locality produces many kinds of agricultural products, and most products are consumed on spot). In addition, the kind of production is popular in many regions in Vietnam economy. Production is oriented towards agriculture commodities with intensive cultivation and specialization to boost productivity, using more machinery, agricultural materials, new technologies (pre-harvest and post-harvest), and agriculture associated with industrial processing and agricultural services. Currently, Vietnam economic development in rural areas is changing significantly. Agricultural operation is major part of rural economy. Agricultural economic sector in rural area includes agriculture, forestry, and fisheries. Non-agricultural operations consist of industry, construction and services which account for greater part in rural economy. Vietnam economy in rural area consists of many economic elements: agriculture – forestry – fishery enterprises, collectives, households, and plantations.

It is known that agriculture remains the great advantage of Vietnam, given internally in the agreement of Trans-Pacific Partnership (TPP). Accordingly, only Vietnam and Malaysia are two tropical agricultural country, but Malaysia only produces a few products such as rubber and palm oil. Therefore, Vietnam is the only agricultural country in the TPP. With approximately 70% of population are farmers, Vietnam always appreciates the importance of issues related to farmers, agriculture and rural development. Vietnam economy over the past 20 years after Doi Moi Reforms (1986-2008) has achieved many positive achievements.

Rubber Plantation

In 1989, the first yields surpassed 20 million tons, exported 1.4 million tons of rice with the turnover of US$ 310 million. By 2007, the food production reached 39 million tons and exported 4.5 million tons of rice with the turnover of US$ 1.7 billion. Over the past decade, Vietnam has become one of the largest rice exporter in the world. Average GDP in agriculture sector annually increases of 3.3%; income and people's living standards are improved, the poverty rate in rural areas decreases by 1.5% per year; rural areas change towards civilization; levels of culture, science, engineering, many farmers are raised higher than before.

Currently, agriculture of Vietnam is developed in both quantity and quality to meet the demand of global market. Vietnamese government also encourage agricultural to participate in international fairs more to promulgate the quality of Vietnam agricultural products to the whole world. This is considered a main target of Vietnam agriculture. At the same time, roles of associations of coffee and rice are highly appreciated. In the context of integration, Vietnam increasingly defines its strategic role in world agriculture. Although, there are many difficulties ahead, with the non-stop efforts, Vietnam agriculture will catch its chance, have flexible, creative methods in the near future to develop endlessly.

Source: Alotrip Travel