Vietnam has been in transition from a centrally-planned to a market-based economy since 1986. Despite the many positive reforms in the last few years, progress is slow and trade and industrialisation policy remains largely one of import substitution affording disproportionate protection to the dominant state-owned sector. Vietnam now has one of the fastest growing and most vibrant economics in Asia. It has both a large market for capital goods and a growing domestic market for consumer goods. There is an abundant, well-educated labour pool.
ASEAN-initiated FDI accounts for 30 per cent of total FDI. The US-Vietnam Bilateral Trade Agreement was ratified in December 2001 and Vietnam became a member of the WTO in November 2006. As a signatory to the ASEAN Free Trade Area, Vietnam is required to reduce many of its tariffs to less than five per cent by 2006. Vietnam’s membership of the WTO will also require a more level playing field and more transparency in the economy. Strong protection for domestic firms is, however, expected to continue for some time.
Key economic indicators and statistics for 2008:
■ GDP US$90.9 billion
■ GPD per capital US$1,047
■ Real GDP growth 6.3 percent
■ Inflation 25 percent
(Source: Australian Government Department of Foreign Affairs and Trade - Country economic fact sheet)
Area: 513,115 sq. km.
Population (2007): 65.74 million. (Data based on Bank of Thailand.)
Natural resources: Tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite.
Agriculture (7.9% of GDP): Products--rice, tapioca, rubber, corn, sugarcane, coconuts, soybeans.
Industry: Types--tourism, textiles, garments, agricultural processing, cement, integrated circuits, jewelry, electronics,
petrochemical, and auto assembly.