Strong economic performance masks structural fragilities

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in July 2021.

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GDP USD 271.158bn (World ranking 42, World Bank 2020)
Population 97.33mn (World ranking 15, World Bank 2020)
Form of state Communist State
Head of government Phạm Minh Chính
Next elections 2026, legislative
  • Low wages but relatively skilled workforce
  • Competitive manufacturing hub
  • Development potential of various natural resources, especially minerals (iron ore, copper, gold) and energy (oil, natural gas, coal)
  • Relatively open economy with growth model based on trade
  • Ongoing shift towards higher value-added sectors
  • Lack of transparency
  • A fragile and opaque banking system
  • Infrastructure to be improved
  • A complicated business environment
  • Low external reserves
  • Recurrent tensions with China

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
United States 27.8%
1
31.3% China
China 16.6%
2
17.5% Korea, Republic of
Japan 7.1%
3
8.2% Japan
Korea, Republic of 7.1%
4
6.4% Taiwan
China, Hong Kong SAR 3.9%
5
5.5% United States

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Telecommunication and sound recording apparatus 18.8%
1
21.9% Electrical machinery, apparatus and appliances, n.e.s.
Articles of apparel & clothing accessories 13.1%
2
7.3% Textile yarn and related products
Electrical machinery, apparatus and appliances, n.e.s. 10.7%
3
5.8% Office machines and automatic data processing machines
Office machines and automatic data processing machines 8.1%
4
5.0% Telecommunication and sound recording apparatus
Footwear 7.6%
5
4.4% Iron and steel
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