Economy of Vietnam

According to cheeroutdoor, GDP in 2002 grew by 7.2% (6.8% in 2001, 6.6% – the average annual increase for 1990-2002) and amounted to 35.28 billion US dollars (in 2001 – 32 billion). GDP per capita $441. Gold and foreign exchange reserves 2.1 billion US dollars (2000). The working-age population is 40 million people. The unemployment rate in the country as a whole is 6.13%, in rural areas – approx. 5.5% (2001).

In the structure of GDP, there is a general downward trend in the share of agricultural production and the growth of industry and services: agriculture 22.99%, industry and capital construction 38.55%, services 38.46%. The public sector in the structure of GDP is 40%, non-state 47%, the sector of foreign investment 13% (2001).

Viet Nam was the only country in Southeast Asia to emerge unscathed from the 2001 recession, largely due to rising domestic consumption. GDP growth in 2002 was also determined by this factor. Investment, especially in the private sector, boomed and was equivalent to 1/3 of GDP. The number of new private enterprises increased by 17% to 20,000, for a total of 60,000. Investment in new small and medium enterprises in the private sector reached $2.7 billion.

The main driver of development was the industrial sector with an increase of 14.4% per year due to the expanding demand for consumer goods. The apparel industry is booming due to duty-free admission to the US market. Growth is also driven by increased local private and foreign investment, while investment in the public sector remained at a constant level.

Inflation, according to official Vietnamese data, was 4%, according to the World Bank – 8% (2002).

Industry is the most dynamically developing branch of the national economy. In 2001, the growth was 15.4% in the public sector (state enterprises of central subordination – 13.1%, local industry – 11.8%), in joint ventures with foreign capital participation 20.3%, in the industry of key economic regions 12.1%. %. The main focus in this sector is on the processing industry, the production of consumer and export goods.

To con. 1990s the number of state-owned enterprises decreased from more than 12 thousand to 5.8 thousand. This process continues at the present time. Of the total number of state-owned enterprises in 2002, 3,000 were unprofitable.

The pace of development of agricultural production, including forestry and fisheries, remains at a stable level. They amounted in 2002 to approx. 5%, in fisheries and seafood production – 14%. The most important food crop is rice, which is harvested 2-3 times a year. Vietnam not only fully meets its needs in rice, but is also one of its largest exporters (after Thailand and the USA).

The basis for the stable development of this industry lies in the fact that it is individual peasant farms that over the past years have provided 95% of the industry’s output. In 2001, food production exceeded 30 million tons.

Roads are approx. 60 thousand km, including: state highways – 12 thousand km, inter-provincial roads – 15 thousand km and inter-district roads – 25 thousand km. 25% of state highways are paved. The main highway – Highway No. 1 (2300 km) runs from the northern border with China to Cape Kamau – the most extreme point in the south of the country.

To con. 1990s the length of railway lines exceeded 4 thousand km. The main highway “North-South” (length 2000 km). The Hanoi-Beijing railway route has been restored. Preparations are underway to open the international route “Vietnam – China – Mongolia – Russia”.

There are more than 40 thousand large and small navigable rivers and canals in the country. There are 17 ports on the sea coast. The largest are Haiphong, Ho Chi Minh City, Da Nang and Cam Ranh. Almost 1/2 of the sea freight traffic passes through Haiphong.

Large state and foreign investments have been invested in the modernization of civil aviation. The air fleet serves 17 domestic routes with a length of 62.5 thousand km. The main volume of traffic falls on the Hanoi-Ho Chi Minh route. There are 3 international airports: Noi Bai in Hanoi, Tan Son Nhat in Ho Chi Minh City and Phu Bai in Thua Thien Hue. From these airports flights are made mainly to the countries of Southeast Asia, as well as to Europe. In 2002, an agreement was reached between Vietnam and the United States to establish an air route “Ho Chi Minh City – San Francisco – Ho Chi Minh City”.

Modern communication in the country is represented by 2 ground stations of space communication “Lotos-1” and

“Lotos-2”, providing telegraph, telephone and teletype communications with 56 countries of the world.

New communication services such as facsimile, mobile phones, paging, e-mail, domestic and international urgent information network are becoming more and more widespread. In 1999, there were 3.2 telephones per 100 inhabitants of Vietnam, in 2002 this figure increased to 4.25.

The service sector in 2002 grew by 12%. Here, the main attention is focused on the development of the transport industry, means of communication, trade, tourism, banks, technologies, and the legal framework. Passenger transportation volumes increased by 4.6%, while cargo transportation increased by 7.2%.

In 2000, trade accounted for 75.2 thousand billion dong (share in the service sector – 71%, growth – 7.4%), for the hotel and restaurant business – 12.8 thousand billion dong (share – 12.1%, growth – 12.2%), for tourism and service enterprises – 6.2 thousand billion dong (share – 5.9%, growth – 10.7%).

For various reasons, the tourism business in the country is developing slowly. In 2001, 2.33 million foreign citizens visited the country (in 2000 – 2.14 million), incl. 1.319 million tourists, 439.7 thousand people. on a business visit, 478.6 thousand people to visit relatives and 93.5 thousand people. with other purposes.

In the monetary system, the leading role is played by the State Bank of the Socialist Republic of Vietnam and St. 60 state-owned commercial banks. These are the Vietkombank, which serves export-import financial flows, the Industrial and Commercial Bank, which specializes in lending to industrial and commercial enterprises, the Agricultural Bank, which finances the agricultural sector, the Investment and Development Bank (Vietindebank), which lends to long-term investment projects, and a number of others. The banking system includes as well as other joint-stock commercial banks. In general, state-owned banks control 80% of the country’s financial market, 12% are held by “semi-autonomous” financial institutions (joint and private), the remaining 8% are banks with foreign participation.

Currently there are 4 joint banks, approx. 60 representative offices and 20 branches of 50 largest foreign banks and financial organizations. Vietnam maintains business contacts with the World Bank, IMF, ADB and others. Leading financial institutions have their representative offices in foreign countries. All R. 2002 The first representative offices of Vietcombank and Vietindebank were opened in the USA.

The state budget in 2002 was executed on revenues of 19.94% of GDP, on expenditures – 22.47%, the deficit – 2.53%. Domestic investment in the economy amounted to 66.7% (in 2000 – 82%), foreign investment – 33.3%. From internal investments: 56.8% – state, 43.2% – mixed and private. The country’s external debt is $13.3 billion (or 37% of GDP). According to IMF criteria, Vietnam is considered a creditworthy payer.

In 2002, the dong was devalued. Dong exchange rate 15,400 dong to 1 US dollar.

The inflow of annual foreign direct investment amounted to 2.2 billion US dollars, incl. $1.6 billion for the construction of small and medium industrial facilities. To the beginning In 2002, 3,044 joint projects with foreign participation and an authorized capital of USD 37.6 billion were registered, incl. 1,459 projects with a capital of $20.6 billion have been implemented, 769 projects ($11.1 billion) are in the process of being implemented. During this time, 399 thousand jobs were created.

The official development assistance program continues to be implemented. In 2002, it provided loans in the amount of 2.4 billion US dollars to boost the economy, improve the living standards of the population and fight poverty. The total amount of appropriations under this program since 1993 has reached 20 billion dollars, half of which has been used.

Despite Vietnam’s apparent success in economic modernization in 2002, the rise in living standards and income growth of the population is slow. The wages of public sector workers remain low – 210,000 dong per month (about $14). Since January 2003, it has been increased to 290 thousand. The average income per capita amounted to 331 thousand VND per month (an increase of 12% compared to 1999). According to the estimates of the State Bank of Vietnam, the total savings of the population amount to approx. 30 trillion dong. The poverty rate in 2002 was 32% of the total population and 10% below the absolute poverty line, 90% of the population with minimal income lives in rural areas.

Building up foreign economic activity is one of the most important priorities of the SRV leadership.

Vietnam’s exports in 2002 amounted to 16.53 billion US dollars (in 2001 – 13.596 billion). Main export commodities (%): oil (share in total export 20), garments (16), seafood (12), shoes (11), rice (4), coffee (2), other goods (35). The growth in exports was achieved due to the increase in the volume of exports of rubber, handicrafts, seafood, garments and shoes. Deliveries abroad of oil, rice, vegetables and electronics were noticeably reduced. Exports were directed (%) to: Japan (15), USA (15), China (9), Australia (8), Singapore (6), Taiwan (5), Germany (4), South Korea, Great Britain, France (by 3), to other countries (29).

Imports in 2002 amounted to 19.3 billion US dollars (16.816 billion in 2001), the deficit of the foreign trade balance was 2.77 billion dollars. The main imported goods (%): machinery and machine tools (19), fuels and lubricants (10), fabrics ( 9), rolled steel (7), clothes (5), cars, electrical equipment, fertilizers (2 each), other goods (44).

The export of labor in 2002 amounted to approx. 50 thousand people per year, mainly to Malaysia (about 30 thousand), South Korea, Japan, Taiwan and the countries of the Middle East.

Vietnam’s flexible approach to the entire range of relations with China made it possible to restore mutually beneficial trade and economic relations with this country. At present, the PRC is investing in Vietnam in 41 projects with a total value of $70 million. Trade turnover in 2002 amounted to 3.5 billion US dollars (2.8 billion in 2001). During a visit to Hanoi in February 2002 by Chinese President Jiang Zemin, the parties expressed their intention to increase the trade turnover between the countries in 2005 to 5 billion US dollars.

Trade and economic relations with Japan are developing successfully. In 1992-2002, this country provided Vietnam with $8.2 billion in official development assistance. Japan also remains a key trading partner of Japan. In 2002, the trade turnover between the countries reached 5 billion US dollars.

Of fundamental importance for the expansion of foreign investment and foreign trade of Vietnam was the ratification of a trade agreement with the United States in December 2001. The foreign trade turnover of the two countries in 2002, according to preliminary data, amounted to approx. $2.5 billion. Exports to the US doubled in 2001-02, reaching $2 billion a year. At the same time, the export of garments increased by 18 times. The US is becoming the largest market for Vietnamese goods: in the first two months of 2003, exports to the US reached $590 million, i.e. increased by 350% compared to the same period in 2002. The volume of US investment is estimated at about $ 1 billion. They are concentrated mainly in industrial production, real estate, oil and gas development. The industrial sector and the hotel business account for 82% of all US investments and 37 ongoing projects.

Trade turnover between Russia and Vietnam in 2002 amounted to approx. $500 million. The basis of economic cooperation between the two countries is the sphere of fuel energy and arms supplies. Russia ranks 8th among more than 60 investor countries. An example of successful cooperation is the activity of the Vietsovpetro joint venture on the shelf of Vietnam.

Currently, Vietnam maintains trade and economic relations with 100 foreign countries, St. 60 foreign companies have their offices here.

Economy of Vietnam