Vietnam's economy

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Vietnam
VietnamVietnam
World economic rank 46. (nominal)
35. (PPP)
currency Vietnamese Dong (VND)
Trade
organizations 		ASEAN , WTO
Key figures
Gross domestic
product (GDP) 		$ 216.0 billion (nominal) (2017)
$ 643.9 billion ( PPP ) (2017)
GDP per capita $ 2,354 (nominal) (2017)
$ 6,913 (PPP) (2017)
GDP by economic sector Agriculture : 15.9%
Industry : 32.7%
Services : 41.3% (2017)
growth   6.3% (2017)
inflation rate 4.4% (2017)
Employed 56.46 million (2017)
Employed persons by economic sector Agriculture : 48% (2012)
Industry : 21% (2012)
Services : 31% (2012)
Unemployment rate 2.3% (2017)
Foreign trade
export 194.60 billion (2017)
Export goods Clothing, shoes, electronics, agricultural goods
import 190.10 billion (2017)
Import goods Machines, electronics, raw materials and petroleum
Foreign trade balance 4.50 billion (2017)
public finances
Public debt 62.3% of GDP (2017)
Government revenue $ 49.41 billion (2017)
Government spending $ 61.14 billion (2017)
Budget balance −5.4% of GDP (2017)

Economic history

1976 to 1986: Central Administration Economy

After the reunification of Vietnam , the country's economy faced the problem of being divided into two halves, which were organized according to completely different patterns: In the north, the communist, planned-economy half, whose agriculture was operated in cooperatives and where the country was also managed by the Americans was bombed. The South, on the other hand, was organized as a market economy, but over the past two decades had developed an economy that depended entirely on the influx of American money brought in as a result of the military presence.

The south was restructured, agriculture collectivized and farms nationalized. In 1978, Vietnam joined the Mutual Economic Assistance Council while the US imposed an economic embargo on Vietnam, which not only prohibited Americans from trading with Vietnam, but also prevented the IMF , World Bank, and similar organizations from providing construction loans to Vietnam.

The result of the ineffectiveness of state-owned enterprises and collectivized agriculture, the trade barriers and the massive environmental damage from the Vietnam War was terrible poverty. Repressions by the communist leadership against the former enemies, poverty and expropriations of the private sector in the south caused more than half a million Vietnamese to leave the country as boat people at risk of death. The number of survivors is only estimated to be between 20 and 40%. In the late 1970s, Vietnam experimented with mixed forms of planned and market economies, but these did not lead to success. As a result, there were multiple famines and hyperinflation in the early 1980s . The only thing that kept Vietnam halfway alive was economic aid from Comecon, which amounted to an estimated $ 3 billion annually.

From 1986: Đổi mới

View over Ho Chi Minh City : it has been Vietnam's economic growth engine since Đổi mới

In 1986 Le Duan died , making way for a younger, reform-minded generation. Under Nguyen Van Linh , Đổi mới ( economic renewal ) was introduced after the sixth party congress , which meant that central planning was abandoned, collectivization gradually abolished and market economy reforms introduced. Foreign companies were allowed to invest in Vietnam. The reforms were based on those of the People's Republic of China in many respects. When Vietnam emerged from international isolation in the early 1990s and the Americans lifted their economic embargo in 1993, so much foreign investment and financial aid flowed into the country that economic growth temporarily exceeded 10% per year. Many foreign companies such as B. Motorola or Triumph International settled in Vietnam.

A considerable part of the economic output is provided by financial support, goods and investments from foreign Vietnamese (especially from the USA); for the year 2000, this amount was estimated at one billion US dollars .

Vietnam is still one of the poorest countries in Asia, although a clear improvement is beginning to take hold. Income differences between urban and rural areas are still large, so that average figures are not very meaningful.

The GDP per person adjusted for purchasing power parity was US $ 410 in 1999 (city 640, country 180), in 2003 it was already around 220 euros / month, which corresponds to around 6 euros / day. Still around 17% of the population earned less than US $ 1 a day in 2003.

In 2007, Vietnam became the 150th member of the World Trade Organization . Vietnam is considered a country with above-average growth opportunities. According to a list published in December 2005 by Goldman Sachs chief economist Jim O'Neill , the country belongs to the so-called " Next Eleven " (N-11), ie populous countries that could prospectively experience a strong economic upswing. The World Bank has classified Vietnam as an emerging country since the beginning of 2011 .

structure

Terrace cultivation in North Vietnam

Before the introduction of Đổi mi , private companies were either banned or neglected, depending on the economic sector. In 2005, the share of the private sector in GDP was 46%, the share in agriculture being particularly high and the share in industrial production accounting for around a third. Foreign direct investment accounts for a further 16%.

The Asian crisis in 1998 also hit Vietnam and economic growth (2001: around 5%) and the interest of foreign investors have slackened. The government needs to implement a number of reforms to allow the economy to continue growing strongly. Above all, this includes a reform of the legal system, as legal uncertainty deteres many potential investors. Likewise, the question of land ownership has not been fully clarified and the impossibility of converting agricultural land into industrial land has meant that the prices for industrial land have temporarily exceeded those in Japan.

The state-owned companies pose a problem for the Vietnamese economy: they are mostly unprofitable, not internationally competitive and have a large amount of loans that they probably cannot repay and thus burden the entire banking system. A number of state-owned enterprises have already been merged with other state-owned enterprises, while others have closed. Due to the social impact (unemployment), however, the process is quite slow.

The economy is marked by a strong difference between the north and the south, with the economy in the south being significantly more dynamic than in the north. This is usually justified by the fact that the strategic location of the south is better and that Đổi mới there - due to the more recent experience with the market mechanisms - took action faster than in the north.

The external debt is relatively low at around 40% of GDP (2001). This is mainly due to the fact that Vietnam could hardly get any loans from western countries until 1993.

The inflation , which was a major problem in the 1980s, is now under control. Astronomical prices with lots of zeros remain as a reminder of inflation. There are only notes with a nominal value of 500–500,000 Đồng. In 2004 one euro was worth about 20,000 Đồng , so it is normal to have to deal with bundles for large amounts, and bags of paper money when settling accounts in shops and banks.

Overall, the Vietnamese economy has proven to be quite stable. Neither SARS nor avian flu have seriously affected development. Even during the Asian crisis that plunged many Southeast Asian countries into recession, growth in Vietnam never fell below 4.8%.

In 2006, Vietnam achieved strong economic growth of 8.2% and joining the World Trade Organization (WTO) in 2007 paved the way for a strong future economy.

Foreign trade

Foreign trade is growing very quickly. In 2003, total imports were around $ 22.5 billion (1996: $ 10.03 billion) and exports were around $ 19.88 billion (1996: $ 7.26 billion). Thanks to the socialist system of government, the Vietnamese economy has achieved a degree of openness that roughly corresponds to that of Thailand .

Vietnam is an oil exporter. About 10% of its exports are crude oil. The second most important export products include goods from light industry, such as textiles and shoes. Among the agricultural products, rice and coffee are the most important. Vietnam is the world's second largest coffee exporter after Brazil . The best known is the Trung Nguyên company. Vietnam is - after the famine before Đổi mới - the world's second largest rice exporter. The trading partners are traditionally the Asian countries, with Japan and Singapore being the most important target countries for exports. Vietnam is also gaining shares in overseas markets (Europe, USA) and is increasingly competing with other Asian countries. Annual export growth is still in double digits, although it has already fallen to half of the values ​​from the 1990s.

Imports are growing at about the same rate as exports. The main imports are fuels, machines, vehicles and raw materials for light industry. Those markets in which unprofitable state-owned companies dominate are protected by high tariffs. Main suppliers are Japan , Taiwan , South Korea and the USA .

The potential for conflict increases with the volume of trade with the USA. In recent years there have been multiple differences of opinion and protectionist measures on the part of America, for example to limit imports of catfish, crabs and textiles. But the diversity of Vietnamese exports makes it comparatively invulnerable to fluctuations in individual product categories.

Mergers & Acquisitions

This article or the following section is not adequately provided with supporting documents ( e.g. individual evidence ). Information without sufficient evidence could be removed soon. Please help Wikipedia by researching the information and including good evidence.
Evidence of M&A Growth, Vietnam. Corporate transactions, acquisition of Big C are missing

Both the interest of foreign companies - especially from Japan, Korea and Thailand - to gain access to Vietnam's market or to accelerate the expansion, as well as mergers of Vietnamese companies have led to a growth in mergers and acquisitions . From January 1999 to November 2016, Vietnamese companies were involved in 3,649 transactions valued at USD 30 billion. The Institute for Mergers, Acquisitions and Alliances , which has been active there since 2006, and the M&A Vietnam expert Christopher Kummer consider a new record possible for the full year 2016, which corresponds to a number of over 500 deals worth almost USD 6 billion. The largest transactions since 2015 include:

  • Acquisition of Big C supermarkets by the Central Group of Cos from Thailand for USD 1.135 billion
  • Acquisition of a 25% stake in Massan Consumer Corporation by Singha Asia Holding of Singapore for $ 1.1 billion
  • the sale of the activities of the Metro Group in Vietnam to TCC Land International from Singapore for 705 mil. USD
  • the 8.8% stake in Vietnam Airlines by ANA Holdings from Japan for USD 109 million

tourism

Stretch of beach

In Europe, Vietnam is more associated with the Vietnam War, communism and poverty and is therefore not one of the classic holiday destinations. Until a few years ago, Vietnam was almost exclusively visited by people who were interested in the culture, wanted to experience adventure or were emotionally connected to the country in one way or another after the Vietnam War.

However, since around 1999 Vietnam has experienced a boom in tourism . In addition to study travelers, more and more backpackers, package tours and beach tourists are coming, the latter mainly from other Asian countries. This is partly due to an “evasive effect” caused by the ongoing violence and terrorist attacks in the Philippines and Indonesia , whereas Vietnam has the image of a peaceful country with low crime rates.

Cruise ships also go to some Vietnamese ports or anchor off the coast and offer day trips to Ho Chi Minh City , Nha Trang , Da Nang or Huế .

In recent years, several international hotels and resorts have been hastily built in some fishing villages, restaurants for foreigners have been opened and the development of a tourist infrastructure has begun. Several hundred thousand people are already employed in tourism.

Stock exchange

The Vietnam Stock Exchange is still relatively young and underdeveloped. A direct investment in Vietnamese stocks is only possible to a very limited extent. Funds based on Vietnamese shares are not permitted in Germany and are therefore tax detrimental for shareholders. However, it is now possible to invest in the Vietnamese stock market through exchange-traded funds (ETF). The Vietnam stock market is represented by two indices:

  • VN Index - Ho Chi Minh Stock Index: The index contains 53 individual stocks. The Bloomberg abbreviation is "VNINDEX" <Index>.
  • Vietnam Stock Index: The index has been calculated since July 28, 2000. The Bloomberg abbreviation is "VNIN" <Index>.

various

GDP and economic sectors
  • According to purchasing power parities : US $ 643.9 billion (2017)
  • per capita (according to purchasing power parities): US $ 6,900
  • Growth: 6.3% (2017)
  • Sectors:
    • Agriculture: 15.9% (employees: 48% of the total population in 2012)
    • Industry: 32.7%
    • Services: 41.3% (2017)
population
  • Human Development Index : 0.704 (2014, 116th place)
  • below the poverty line: 11.3% (2012 estimated)
  • Household income or consumption:
    • poorest 10%: 3.2%
    • richest 10%: 30.2% (2014)
  • Labor force: 56.46 million (2017 estimated)
  • by sector:
    • Agriculture: 48%
    • Industry and services: 52% (2012 estimated)
  • Employment rate women: 48.8% (2001)
  • Unemployment: 2.3% (2017 estimated)
household
  • Income: $ 49.410 billion
  • Spending: US $ 61.140 billion (2017 estimated)
  • Health expenditure (as a percentage of GDP): 5.2 (2000)
  • Defense spending (as a percentage of GDP): 2.6 (1994)
Industry

Products sorted by value of export (as of 2015):

  • Electronics and smartphones
  • textiles
  • Shoes
  • Metals, e.g. B. Semi-finished steel (2017: 17.8 million tons)
  • Plastics and rubber

Other products: food processing, machines, cement, chemical fertilizers, glass, oil (2005: 18,500,000 t), anthracite coal (> 40 Mt / year), iron ore (> 5 Mt / year), paper

  • Growth: 16% (2003 estimated)
Agriculture

Products sorted by value of export (as of 2015):

  • Crustaceans (unprocessed and processed)
  • Coffee (2012: 1,290,000 t)
  • rice
  • Nuts, especially cashews (2007: 300,000 t)
  • Fish (2006: 3,400,000 t)
  • Pepper (2007: 100,000 t)
  • Rubber (2007: 550,000 t)

Other products: grain, potatoes, soybeans, poultry, pigs, tea (2007: 700,000 t), bananas

electricity
  • Consumption: 25.9 TWh (2001)
  • Production: 30.6 TWh (2001)
  • from that:
    • Hydro power: 59.5%
    • Coal: 10.5%
    • Oil: 3.7%
    • Gas turbines (natural gas + oil): 19.1%
    • other: 7.2%
Foreign trade
  • Import: 173.3 billion US $ (2016)
  • The most important imports are: machinery and equipment (USD 28.1 billion), electronics and parts (USD 27.8 billion), materials (USD 10.5 billion) and iron and steel (USD 8 billion).
  • Export: 175.9 billion US $ (2016)
  • The top exports (2016) are cell phones and spare parts ($ 34.5 billion), textiles and clothing ($ 23.6 billion), shoes ($ 12.9 billion), computers and parts ($ 18.5 billion). USD) and machinery and spare parts (USD 10.5 billion).
currency
  • 1 new đồng (VND)
  • Inflation rate: 4.4% (2017)
  • Exchange rates: 1 euro = 24,569 VND; 100,000 VND = 4.07 euros (October 31, 2015)

Web links

literature

  • Peter Boothroyd, Pham Xuan Nam (Ed.): Socioeconomic Renovation in Viet Nam . The Origin, Evolution, and Impact of Doi Moi. International Development Research Center, Ottawa 2000, ISBN 0-88936-904-6 (English, online ).
  • Geoffrey Murray: Vietnam . Dawn of a New Market. Palgrave Macmillan, 1997, ISBN 0-312-17392-X (English).
  • Helmut Opletal, Werner Clement : Doi Moi . Departure in Vietnam. Economic reform and post-war politics. In: Knowledge & Practice . tape 92 . Brandes & Apsel / Südwind, Frankfurt am Main / Vienna 1999, ISBN 3-86099-292-9 .
  • Peter Wolff: Vietnam . The unfinished transformation. Ed .: German Institute for Development Policy. Weltforum Verlag, Cologne 1997, ISBN 3-8039-0474-9 .
  • Au Duong The: Vietnam . The reform policy since the VI. Communist Party Congress of Vietnam. In: Socialist and planned economy systems in Asia in transition . PR China, Vietnam, North Korea, Burma, India. VISTAS Verlag, Berlin 1989, ISBN 3-89158-048-7 .
  • Claudia Pfeifer: Confucius and Marx on the Red River . Vietnamese reform concepts after 1975. Horlemann Verlag, Unkel am Rhein / Bad Honnef 1991, ISBN 3-927905-23-2 .

swell

  1. ↑ Gross domestic product 2016 (PPP) (PDF; 14 kB) In: The World Bank: World Development Indicators database . World Bank. February 3, 2017. Retrieved February 5, 2018.
  2. ↑ [1] Retrieved January 29, 2018
  3. ↑ [2] Retrieved January 29, 2018
  4. ↑ [3] Retrieved January 29, 2018
  5. ↑ [4] Retrieved January 29, 2018
  6. ↑ [5] Retrieved January 29, 2018
  7. ↑ [6] Retrieved January 29, 2018
  8. ↑ [7]
  9. ↑ [8] Retrieved January 29, 2018
  10. ↑ [9] Retrieved January 29, 2018
  11. ↑ [10] Retrieved January 29, 2018
  12. ↑ Viet Nam's Economic Renovation Along Socialist-Oriented Market Economy: Critical policy and institutional reforms. In: Proceedings from the International Policy Conference on Transition Economies. Michigan University Press 2005.
  13. ↑ Triumph ( Memento from October 4, 2015 in the Internet Archive )
  14. ↑ current data see http://data.worldbank.org/ , Statistics Office of Vietnam , statista.com
  15. ↑ M&A expert Vietnam. Retrieved November 10, 2016 .
  16. ^ M&A Statistics Vietnam . Retrieved November 7, 2016.
  17. ↑ Article on bloomberg.com
  18. ↑ Press release on metrogroup.de
  19. ↑ Press release on ana.co.jp
  20. ↑ Bloomberg - Are you a robot? Retrieved April 29, 2019 .
  21. ↑ United Nations Development Program (UNDP): Human Development Report 2015 . Ed .: German Society for the United Nations eV Berliner Wissenschafts-Verlag, Berlin ( undp.org [PDF; 9.3 MB ; accessed on November 1, 2016]). Page 251.
  22. ↑ http://atlas.media.mit.edu/de/visualize/tree_map/hs92/export/vnm/all/show/2015/
  23. ↑ Frederic Spohr: Vietnam: Red Intoxication. In: Zeit Online. June 18, 2017. Retrieved June 19, 2017 .
  24. ↑ https://vietnamnews.vn/economy/450926/vsa-recommends-govt-not-approve-stainless-steel-project.html#Zbc2asPdqYRyjrD8.97
  25. ↑ http://www.sourcewatch.org/index.php?title=Vietnam_and_coal
  26. ↑ http://www.vietnambreakingnews.com/2014/04/kobe-steel-awaits-clarity-over-thach-khe-iron-mine/
  27. ↑ http://atlas.media.mit.edu/de/visualize/tree_map/hs92/export/vnm/all/show/2015/
  28. ↑ FAO , Faostat Statistics of the FAO 2013 , accessed on January 21, 2015
  29. ↑ http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/Vietnam/Wirtschaft_node.html
  30. ↑ http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/Vietnam/Wirtschaft_node.html