VIETNAM

Strong economic performance masks structural fragilities

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD 223.864bn (World ranking 45, World Bank 2017)
Population 95.54mn (World ranking 15, World Bank 2017)
Form of state Communist State
Head of government Nguyễn Xuân Phúc
Next elections 2021, 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)

Exports Rank Imports
United States 20%
1
27% China
China 14%
2
19% Korea, Republic of
Japan 8%
3
8% Japan
Korea, Republic of 6%
4
6% United States
China, Hong Kong SAR 4%
5
6% Taiwan (PCR)

Trade structure by product

(% of total)

Exports Rank Imports
Telecommunication and sound recording apparatus 19%
1
16% Electrical machinery, apparatus and appliances, n.e.s.
Articles of apparel & clothing accessories 14%
2
9% Telecommunication and sound recording apparatus
Footwear 8%
3
8% Textile yarn and related products
Electrical machinery, apparatus and appliances, n.e.s. 7%
4
5% Iron and steel
Fish, crustaceans, molluscs and preparations thereof 5%
5
5% Other industrial machinery and parts

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Mahamoud Islam

Senior Economist for Asia

mahamoud.islam@eulerhermes.com

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