Economy
[edit]
Main article: Economy of Vietnam
Historical GDP per capita development of Vietnam
Share of world GDP (PPP)
Year
Share
1980
0.21%
1990
0.28%
2000
0.39%
2010
0.52%
2020
0.80%
Throughout the history of Vietnam, its economy has been based largely on agriculture—primarily wet rice cultivation. Bauxite, an important material in the production of aluminium, is mined in central Vietnam. Since reunification, the country's economy is shaped primarily by the CPV through Five-Year Plans decided upon at the plenary sessions of the Central Committee and national congresses. The collectivisation of farms, factories, and capital goods was carried out as part of the establishment of central planning, with millions of people working for state enterprises. Under strict state control, Vietnam's economy continued to be plagued by inefficiency, corruption in state-owned enterprises, poor quality, and underproduction. With the decline in economic aid from its main trading partner, the Soviet Union, following the erosion of the Eastern bloc in the late 1980s, and the subsequent collapse of the Soviet Union, as well as the negative impacts of the post-war trade embargo imposed by the United States, Vietnam began to liberalise its trade by devaluing its exchange rate to increase exports and embarked on a policy of economic development.
Vietnam's tallest skyscraper, the Landmark 81, located in Bình Thạnh district, Ho Chi Minh City.
In 1986, the Sixth National Congress of the CPV introduced socialist-oriented market economic reforms as part of the Đổi Mới reform programme. Private ownership began to be encouraged in industry, commerce, and agriculture, and state enterprises were restructured to operate under market constraints. This led to the five-year economic plans being replaced by the socialist-oriented market mechanism. As a result of these reforms, Vietnam achieved approximately 8% annual gross domestic product (GDP) growth between 1990 and 1997. The United States ended its economic embargo against Vietnam in early 1994. Although the 1997 Asian financial crisis caused an economic slowdown to 4–5% growth per year, its economy began to recover in 1999, and grew at around 7% per year from 2000 to 2005, one of the fastest in the world. On 11 January 2007, Vietnam became the 150th member of the WTO (World Trade Organization). According to the General Statistics Office of Vietnam (GSO), growth remained strong despite the late-2000s global recession, holding at 6.8% in 2010. Vietnam's year-on-year inflation rate reached 11.8% in December 2010, and the currency, the Vietnamese đồng, was devalued three times.
Deep poverty, defined as the percentage of the population living on less than $1 per day, has declined significantly in Vietnam, and the relative poverty rate is now less than that of China, India, and the Philippines. This decline can be attributed to equitable economic policies aimed at improving living standards and preventing the rise of inequality. These policies have included egalitarian land distribution during the initial stages of the Đổi Mới programme, investment in poorer remote areas, and subsidising of education and healthcare. Since the early 2000s, Vietnam has applied sequenced trade liberalisation, a two-track approach opening some sectors of the economy to international markets. Manufacturing, information technology and high-tech industries now form a large and fast-growing part of the national economy. Although Vietnam is a relative newcomer to the oil industry, it is the third-largest oil producer in Southeast Asia with a total 2011 output of 318,000 barrels per day (50,600 m3/d). In 2010, Vietnam was ranked as the eighth-largest crude petroleum producer in the Asia and Pacific region. The US bought the biggest share of Vietnam's exports, while goods from China were the most popular Vietnamese import.
Based on findings by the International Monetary Fund (IMF) in 2022, the unemployment rate in Vietnam was 2.3%, the nominal GDP US$406.452 billion, and a nominal GDP per capita $4,086. Besides the primary sector economy, tourism has contributed significantly to Vietnam's economic growth with 7.94 million foreign visitors recorded in 2015.
Agriculture[edit]
Terraced rice fields in Sa Pa
As a result of several market liberalization measures, Vietnam has become a major exporter of agricultural products. It is now the world's largest producer of cashew nuts, with a one-third global share; the largest producer of black pepper, accounting for one-third of the world's market; and the second-largest rice exporter in the world after Thailand since the 1990s. Subsequently, Vietnam is also the world's second largest exporter of coffee. The country has the highest proportion of land use for permanent crops together with other states in the Greater Mekong Subregion. Other primary exports include tea, rubber and fishery products. Agriculture's share of Vietnam's GDP has fallen in recent decades, declining from 42% in 1989 to 20% in 2006 as production in other sectors of the economy has risen.
Seafood[edit]
The overall fisheries production of Vietnam from capture fisheries and aquaculture was 5.6 million MT in 2011 and 6.7 million MT in 2016. The output of Vietnam's fisheries sector has seen strong growth, which could be attributed to the continued expansion of the aquaculture sub-sector.
Science and technology[edit]
Main article: Science and technology in Vietnam
A Vietnamese-made TOPIO 3.0 humanoid ping-pong-playing robot displayed during the 2009 International Robot Exhibition (IREX) in Tokyo
In 2010, Vietnam's total state spending on science and technology amounted to roughly 0.45% of its GDP. Vietnamese scientists have made many significant contributions in various fields of study, most notably in mathematics. Hoàng Tụy pioneered the applied mathematics field of global optimisation in the 20th century, while Ngô Bảo Châu won the 2010 Fields Medal for his proof of fundamental lemma in the theory of automorphic forms. Since the establishment of the Vietnam Academy of Science and Technology (VAST) by the government in 1975, the country is working to develop its first national space flight programme especially after the completion of the infrastructure at the Vietnam Space Centre (VSC) in 2018. Vietnam has also made significant advances in the development of robots, such as the TOPIO humanoid model. One of Vietnam's main messaging apps, Zalo, was developed by Vương Quang Khải, a Vietnamese hacker who later worked with the country's largest information technology service company, the FPT Group.
Vietnamese science students working on an experiment in their university lab
According to the UNESCO Institute for Statistics, Vietnam devoted 0.19% of its GDP to science research and development in 2011. Vietnam was ranked 44th in the Global Innovation Index in 2025. It has increased its ranking considerably since 2012, when it was ranked 76th. Between 2005 and 2014, the number of Vietnamese scientific publications recorded in Thomson Reuters' Web of Science increased at a rate well above the average for Southeast Asia, albeit from a modest starting point. Publications focus mainly on life sciences (22%), physics (13%), and engineering (13%), which is consistent with recent advances in the production of diagnostic equipment and shipbuilding.
Tourism[edit]
Main article: Tourism in Vietnam
Hội An, a UNESCO World Heritage Site, is a major tourist destination. The photo is Japanese Bridge.
Tourism is an important element of economic activity in the nation, contributing 7.5% of the total GDP. Vietnam hosted roughly 13 million tourists in 2017, an increase of 29.1% over the previous year, making it one of the fastest-growing tourist destinations in the world. The vast majority of the tourists in the country, some 9.7 million, came from Asia; namely China (4 million), South Korea (2.6 million), and Japan (798,119). Vietnam also attracts large numbers of visitors from Europe, with almost 1.9 million visitors in 2017; most European visitors came from Russia (574,164), followed by the United Kingdom (283,537), France (255,396), and Germany (199,872). Other significant international arrivals by nationality include the United States (614,117) and Australia (370,438).
The most visited destinations in Vietnam are the largest city, Ho Chi Minh City, with over 5.8 million international arrivals, followed by Hanoi with 4.6 million and Hạ Long, including Hạ Long Bay with 4.4 million arrivals. All three are ranked in the top 100 most-visited cities in the world. Vietnam is home to eight UNESCO World Heritage Sites. In 2018, Travel + Leisure ranked Hội An as one of the world's top 15 best destinations to visit.
Transport[edit]
Main articles: Transport in Vietnam, Rail transport in Vietnam, and List of airports in Vietnam
Much of Vietnam's modern transportation network can trace its roots to the French colonial era, when it was used to facilitate the transportation of raw materials to its main ports. It was extensively expanded and modernised following the partition of Vietnam. Vietnam's road system includes national roads administered at the central level, provincial roads managed at the provincial level, district roads managed at the district level, urban roads managed by cities and towns, and commune roads managed at the commune level. In 2010, Vietnam's road system had a total length of about 188,744 kilometres (117,280 mi) of which 93,535 kilometres (58,120 mi) are asphalt roads comprising national, provincial and district roads. The length of the national road system is about 15,370 kilometres (9,550 mi) with 15,085 kilometres (9,373 mi) of its length paved. The provincial road system has around 27,976 kilometres (17,383 mi) of paved roads, while 50,474 kilometres (31,363 mi) district roads are paved.
HCMC–LT–DG section of the North–South Expressway
Tan Son Nhat International Airport is the busiest airport in the country.
Bicycles, motorcycles, and motor scooters remain the most popular forms of road transport in the country, a legacy of the French, though the number of privately owned cars has been increasing in recent years. Public buses operated by private companies are the main mode of long-distance travel for much of the population. Traffic collisions remain the major safety issue of Vietnamese transportation, with an average of 30 people losing their lives daily. Traffic congestion is a growing problem in both Hanoi and Ho Chi Minh City, especially with the growth of individual car ownership. Vietnam's primary cross-country rail service is the Reunification Express from Ho Chi Minh City to Hanoi, a distance of nearly 1,726 kilometres (1,072 mi). From Hanoi, railway lines branch out to the northeast, north, and west; the eastbound line runs from Hanoi to Hạ Long Bay, the northbound line from Hanoi to Thái Nguyên, and the northeast line from Hanoi to Lào Cai. In 2009, Vietnam and Japan signed a deal to build a high-speed railway—shinkansen (bullet train)—using Japanese technology. Vietnamese engineers were sent to Japan to receive training in the operation and maintenance of high-speed trains. The planned railway will be a 1,545 kilometres (960 mi)-long express route serving a total of 23 stations, including Hanoi and Ho Chi Minh City, with 70% of its route running on bridges and through tunnels. The trains will travel at a maximum speed of 350 kilometres (220 mi) per hour. Plans for the high-speed rail line, however, have been postponed after the Vietnamese government decided to prioritise the development of both the Hanoi and Ho Chi Minh City metros and expand road networks instead.
The port of Hai Phong is one of the largest and busiest container ports in Vietnam.
Vietnam operates 20 major civil airports, including three international gateways: Noi Bai in Hanoi, Da Nang International Airport in Đà Nẵng, and Tan Son Nhat in Ho Chi Minh City. Tan Son Nhat is the country's largest airport, handling the majority of international passenger traffic. According to a government-approved plan, Vietnam will have another seven international airports by 2025, including Vinh International Airport, Phu Bai International Airport, Cam Ranh International Airport, Phu Quoc International Airport, Cat Bi International Airport, Can Tho International Airport, and Long Thanh International Airport. The planned Long Thanh International Airport will have an annual service capacity of 100 million passengers once it becomes fully operational in 2025. Vietnam Airlines, the state-owned national airline, maintains a fleet of 86 passenger aircraft and aims to operate 170 by 2020. Several private airlines also operate in Vietnam, including Air Mekong, Bamboo Airways, Jetstar Pacific Airlines, VASCO and VietJet Air. As a coastal country, Vietnam has many major sea ports, including Cam Ranh, Đà Nẵng, Hải Phòng, Ho Chi Minh City, Hạ Long, Qui Nhơn, Vũng Tàu, Cửa Lò, and Nha Trang. Further inland, the country's extensive network of rivers plays a key role in rural transportation with over 47,130 kilometres (29,290 mi) of navigable waterways carrying ferries, barges, and water taxis.
Energy[edit]
Main articles: Energy in Vietnam and List of power stations in Vietnam
Sơn La Dam in northern Vietnam, the largest hydroelectric dam in Southeast Asia
Vietnam's energy sector is dominated largely by the state-controlled Vietnam Electricity Group (EVN). As of 2017, EVN made up about 61.4% of the country's power generation system with a total power capacity of 25,884 MW. Other energy sources are PetroVietnam (4,435 MW), Vinacomin (1,785 MW) and 10,031 MW from build–operate–transfer (BOT) investors.
Most of Vietnam's power is generated by either hydropower or fossil fuel power such as coal, oil and gas, while diesel, small hydropower and renewable energy supplies the remainder. The Vietnamese government had planned to develop a nuclear reactor as the path to establish another source for electricity from nuclear power. The plan was abandoned in late 2016 when a majority of the National Assembly voted to oppose the project due to widespread public concern over radioactive contamination.
The household gas sector in Vietnam is dominated by PetroVietnam, which controls nearly 70% of the country's domestic market for liquefied petroleum gas (LPG). Since 2011, the company has also operated five renewable energy power plants, including the Nhơn Trạch 2 Thermal Power Plant (750 MW), Phú Quý Wind Power Plant (6 MW), Hủa Na Hydro-power Plant (180 MW), Dakdrinh Hydro-power Plant (125 MW), and Vũng Áng 1 Thermal Power Plant (1,200 MW).
According to statistics from BP, Vietnam is listed among the 52 countries that have proven crude oil reserves. In 2015, the reserve was approximately 4.4 billion barrels, ranking Vietnam in first place in Southeast Asia, while the proven gas reserves were about 0.6 trillion cubic metres (tcm) and ranking it third in Southeast Asia after Indonesia and Malaysia.
Telecommunication[edit]
Main article: Telecommunications in Vietnam
Telecommunications services in Vietnam are wholly provided by the Vietnam Post and Telecommunications General Corporation (now the VNPT Group), which is a state-owned company. The VNPT retained its monopoly until 1986. The telecom sector was reformed in 1995 when the Vietnamese government began to implement a competitive policy with the creation of two domestic telecommunication companies, the Military Electronic and Telecommunication Company (Viettel, which is wholly owned by the Vietnamese Ministry of Defence) and the Saigon Post and Telecommunication Company (SPT or SaigonPostel), with 18% of it owned by VNPT. VNPT's monopoly was finally ended by the government in 2003 with the issuance of a decree. By 2012, the top three telecom operators in Vietnam were Viettel, Vinaphone, and MobiFone. The remaining companies included: EVNTelecom, Vietnammobile and S-Fone. With the shift towards a more market-oriented economy, Vietnam's telecommunications market is continuously being reformed to attract foreign investment, which includes the supply of services and the establishment of nationwide telecom infrastructure.
Water supply and sanitation[edit]
Main article: Water supply and sanitation in Vietnam
In rural areas of Vietnam, piped water systems are operated by a wide variety of institutions including a national organisation, people committees (local government), community groups, co-operatives and private companies.
Vietnam has 2,360 rivers with an average annual discharge of 310 billion m3. The rainy season accounts for 70% of the year's discharge. Most of the country's urban water supply systems have been developed without proper management within the last 10 years. Based on a 2008 survey by the Vietnam Water Supply and Sewerage Association (VWSA), existing water production capacity exceeded demand, but service coverage is still sparse. Most of the clean water supply infrastructure is not widely developed. It is only available to a small proportion of the population, with about one-third of 727 district towns having some form of piped water supply. There is also concern over the safety of existing water resources for urban and rural water supply systems. Most industrial factories release their untreated wastewater directly into the water sources. Where the government does not take measures to address the issue, most domestic wastewater is discharged, untreated, back into the environment and pollutes the surface water.
In recent years, there have been some efforts and collaboration between local and foreign universities to develop access to safe water in the country by introducing water filtration systems. There is a growing concern among local populations over the serious public health issues associated with water contamination caused by pollution as well as the high levels of arsenic in groundwater sources. The government of Netherlands has been providing aid focusing its investments mainly on water-related sectors including water treatment projects. Regarding sanitation, 78% of Vietnam's population has access to "improved" sanitation—94% of the urban population and 70% of the rural population. However, there are still about 21 million people in the country lacking access to "improved" sanitation according to a survey conducted in 2015. In 2018, the construction ministry said the country's water supply and drainage industry had been applying hi-tech methods and information technology (IT) to sanitation issues but faced problems like limited funding, climate change, and pollution. The health ministry has also announced that water inspection units will be established nationwide beginning in June 2019. Inspections are to be conducted without notice, since there have been many cases involving health issues caused by poor or polluted water supplies, as well as unhygienic conditions reported every year.