Highlight about Vietnam

Highlight about Vietnam

1. Economic growth

According to the statistics of the General Statistics Office, the domestic economy continued to expand its growth. Growth of Gross Domestic Products (GDP) in nine months of 2019 was estimated to increase by 6.98% compared with the same period last year, the highest growth of nine months in the last 9 months. In 2019, GDP increased by 6.82% in the first quarter; 6.73% in the second quarter; and 7.31% in the third quarter. 

The growth of the industrial and constructional sector in nine months of 2019 reached 9.36% compared to the identical period last year, of which the industry increased by 9.56% thanks to the manufacturing playing a key role in leading the overall growth of the whole industry and the entire economy (with a rise of 11.37%).

Export and import turnover of goods and services in nine months of 2019 reached a good growth rate, of which export turnover of the domestic economic sector had a growth rate of 16.4%, much higher than the growth rate of FDI sector (5%). The trade balance of goods in 9 months was estimated at a trade surplus of USD 5.9 billion. Total export and import turnover of goods in nine months of 2019 were estimated at USD 382.72 billion. Export turnover of goods gained USD 194.3 billion, a rise of 8.2% over the same period last year. Import turnover of goods was estimated to reach USD 188.42 billion, a growth of 8.9% from the same period in 2018. 

Inflation was curbed at a low level, the average consumer price index (CPI) in nine months increased by 2.5%, this is the lowest 9-month average increase in the past 3 years. 

2. International integration- Free Trade Agreements (FTAs)

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3. Business opportunities

Vietnamese businesses are facing the opportunity to transform themselves from the 4.0 technology revolution and the great benefits of global integration. Therefore, e-commerce and logistics industry is one of the quite attractive filed to invest in Vietnam. In fact, Vietnamese have been accessing the internet and shopping online more than over the years. For instance, out of 66% of Vietnamese accessed to the internet during 2019, 98% of them made an order purchase online according to Nielsen. The online shopping channel of customers began to be more diversified due to the contribution of e-commerce (68%), social networks (51%) and mobile commerce (41%). 

Besides e-commerce, fresh energy is also an attractive industry to invest in Vietnam in the coming year. Energy demand increased by about 10% in the period of 2001-2010. From 2017 to now, reports have shown that Vietnam’s electricity system can operate with a high proportion of renewable energy sources.

4. Reforming administrative procedures and new law provisions

  • In December 2019, The National Public Service Portal (“NPSP”) is official put onto operation through the address dichvucong.gov.vn. Using a single account, individuals and enterprises can log in to all of the ministry-level and provincial-level public service portals performing online public services; monitoring the settlement status, assessing the quality of settling and sending feedback, recommendations regardless of time and administrative boundaries. At the same time, it could help to reuse existing information and save time for document preparation, thereby significantly reducing social costs in the implementation of administrative procedures, especially those related to many agencies. Sharing information and platforms also contribute to limit scattered investment in ministries, branches and localities and then enhance the management of the State, monitoring and assessing the handling of administrative procedures, enhance accountability and policy response capacity, impulse the administrative reform processes and improve the business investment environment, then develop business and socio-economic. In 2020, Tax Administration laws will take effect. The Tax Administration Law has created a legal basis for modern tax administration, access to international standards and practices, to create favourable conditions for taxpayers, ensure the rights and legitimate interests of taxpayers.
  • Labor code will be effective in 2021. The revised Labor Code has a profound impact on the strata of people and workers, towards ensuring harmony and stability in labor relations.

Note: for further detailed information and data about Vietnamese economy, visit the following websites: 
General Statistics Office of Viet Nam
The Socialist Republic of Viet Nam
Ministry of Planning And Investment