The document provides an overview of Vietnam's economy, covering its main industries, economic growth rates, foreign direct investment trends, trade relations, and strengths and weaknesses for attracting business. It notes that Vietnam has experienced strong economic growth supported by exports and FDI, though it fell during the global financial crisis, and its main industries include agriculture, textiles, and energy. The country's strengths are its young workforce and economic growth potential, while weaknesses include lack of property rights protections and corruption.

2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview

3. The declining agricultural sector is dominated by cultivation and plantations (rice, coffee,
cashew nuts, corn, pepper, sweet potatoes, peanuts, cotton, rubber and tea), and aquaculture.
Vietnam is the sector that employs the biggest part of the population.
Industry is the main driver of growth in the Vietnamese economy.
The sector is still dominated by large public groups.
Vietnam's main industries are textile, food industry, furniture industry, plastics and paper
industries.
The energy sector is in full-growth since several years ago (coal, hydrocarbons, electricity,
cement, steel and naval industry).
Vietnam is the "new comer" in the oil industry, today Vietnam is the third biggest Southeast
Asian producer.
Vietna,m has also invested into high value-added industries such as cars, electronic and
computer technologies (software).
The services sector is sustained by tourism and telecommunications.
These profitable sectors should strongly contribute to the economic health of the country in
the next following years.

4. After adopting a major reform plan (Doi Moi) in 1986, Vietnam experienced a period
of strong growth.
From 2004 to 2007, the annual GDP growth surpassed 8%, then, it slowed down to 3.5%
in 2008.
Vietnamese growth is sustained by international trade and foreign investments, with
exports ensuring more than two-thirds of the GDP.
Due to the international economic crisis, the country entered into recession in 2009 and
its growth was almost zero in 2010.
The government launched reforms for all the key sectors of the economy and anticipates
partial privatization of public companies; however, their implementation remains
gradual. A tax reform has also been undertaken in order to compensate for the fall in
customs revenues, as a consequence of its entry into the WTO and to make the country
more attractive to investors.

5. In order to deal with the global financial crisis, the government has established several
recovery plans aimed at improving the business climate and therefore promoting
production and exports, stimulating consumption and investments, increasing social
security and reducing poverty, introducing monetary policies and effective taxation.
The reforms have succeeded in the improvement of the standard of living of the
inhabitants.
The GDP per capita went from USD 220 in 1994 to more than USD 1,000 today.
The percentage of the population living on less than a dollar per day has declined in a
significant way and it is now lower than China, India or the Philippines.
The urban unemployment rate has risen in recent years and under-employment,
estimated at 30% remains constant.

6. FDI inflow has increased considerably since the country authorized foreign investments in 1988, and it
has reached record levels in 2008 with USD 1.9 billion.
The social-political stability of the country is one of its main assets.
FDI was strongly affected by the global economic crisis, showing a drop of more than 80% in 2009.
Vietnam was directed towards light industry, but FDI is now rapidly growing in heavy industry, real
estate and tourism.
Despite the crisis, investment planners in Vietnam estimate a significant growth in the FDI capital.
According to a survey carried out by the Asian Business Council, Vietnam ranks in third position amongst
Asian nations, in terms of investment attractiveness for the 2009-2010 period, just behind China and India.
Some measures remain to be taken for the improvement of Vietnam's competitiveness in order to attract
more FDI, namely the improvement of its legal procedures, the acceleration of the process of setting
the legislation for investments and companies, the intensification of the decentralization process,
the creation of an incentive policy for the development of supporting industries and the
simplification of economic partnerships.

7. The promotion of foreign investments is part of the country's development strategy.
Vietnam government has never stopped perfecting its judicial system, creating more incentives
and taxation policies for foreign investors and trying to respect its commitments with regard to
the international community. "Business forums" are frequently organized between the
Vietnamese government and the private sector, these being opportunities for foreign investors to
establish fruitful dialogue and to assert their interests.
Vietnamese efforts to maintain socio-political stability and set up and professionalize
investment promotion activities also play a crucial role in increasing the FDI flow.

8. Vietnam,'s strong points are:
Positive economic prospects in terms of growth, despite the global crisis;
A young, cheap, rapidly growing and more and more technologically qualified
manpower;
A certain social-political stability;
A government committed to liberalizing the economy and to introducing reforms
based on the free market

9. The country's weak points are:
Weak investment and financial freedom;
The lack of guarantees for property rights;
A high level of corruption (in the legal system, as well as for civil
service).

10. Vietnam is one of the Asian economies most open to international trade, which represents more
than 100% of the GDP, more than twice the Chinese rate and more than 4 times the Indian rate.
Vietnam has demonstrated its strong commitment to trade liberalization in these recent years.
Vietnam has joined the WTO and signed Free Trade Agreements (FTAs) with ASEAN countries and
the USA. Vietnam also has a cooperation agreement with the EU.
Vietnamese trade is characterized by a strong geographic inequality, the country shows a trade
surplus with western countries and a growing deficit with its Asian neighbors.
Vietnam is currently classified as the third largest rice exporter in the world.
The other exports mainly constitute textiles, clothing and footwear products and crude oil, whereas
imports are mainly made up of tool machinery, refined oil and steel.
The main export customers of Vietnam are the USA, Japan, the EU, Australia and China.
For imports, the country's main partners are China, Singapore, Japan, South Korea and Thailand.
The global economic crisis affected Vietnam's foreign trade. Exports dropped by 14% in relation to
2009, and imports by 28%, the trade deficit rose to USD 500 million.

11. Visit us to download for related reports
Market Opportunities of products and Services in Vietnam.
Export and investment sector opportunities in Vietnam.
Overview of Trade Regulations, Customs and Standards Vietnam.
Vietnam Investment guide for beginners.
Business and Project Financing in Vietnam.
Business Travel Advisory in Vietnam.

12.  China  Australia
 Mexico  Germany
 United States  France
 India  Spain
 Canada  South Korea
 Russia  Vietnam
 Hong Kong  Saudi Arabia
 Colombia  Poland
 Brazil  South Africa
 Turkey  Nigeria
 Indonesia  Argentina
 Egypt  UAE
 Singapore  Netherland
 United Kingdom  Sweden
 Italy  Thailand
 Japan  Israel
and more….
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