Vietnam’s economy didn’t grow as expected in the following decade, mainly because of corruption and inefficient implementation of state programs as well as various restrictions imposed on the economic activities. Its economy further suffered because of the economic embargoes implemented by many European countries and United States of America. In 1986, after the fall of the communist government, significant steps were taken to revive the economy. Because of better management of economy, Vietnam experienced 8% annual GDP growth throughout the 1990’s.
In 2007, the GDP per capita for Vietnam was US$ 835.31, which increased by 24.55% in 2008. US$ 1,040.35 of GDP per capita was recorded for Vietnam in the year 2008. With this Vietnam achieved 148th position in the world in terms of GDP per capita for the year 2008. Its GDP per capita is above the world’s average in 2008. GDP per capita for Vietnam in 2009 is expected to be around US$ 1,018.95, which is 2.06% less than what was recorded in 2008.
The industrial sector is a major contributor in the GDP of Vietnam. Major industries of Vietnam include paper, cement, steel, building, food processing, garments, glass, shoes, oil, tires and coal. The agriculture sector is the other significant contributor in its GDP with paddy, corn, soybeans, potatoes, rubber, pigs, poultry, tea and coffee being the major agricultural products.
Vietnam has experienced both balance of payment and trade deficit over a number of years. It enjoys trade surplus position with most of the countries it has trade ties including Australia, United Kingdom, United States of America, Belgium, Germany and Philippines. On the other hand, it has a trade deficit with some of the countries like China, India, Korea, Thailand, Switzerland, Hong Kong, Taiwan and Singapore.
The rapid growth of exports in Vietnam is spurred by renovation process (doi moi) and the Foreign Investment Act. Before adopting them, Vietnam usually traded with countries belonging to the communist bloc. Significant growth was seen when US lifted the trade embargo in the year 1995. Exports got further boost when it was accepted in ASEAN and signed a Bilateral Trade Agreement with United States of America in the year 2000 and became the member of WTO in 2007. Vietnam has trade ties with more than 200 countries across the globe.
The major exports from Vietnam include crude oil, footwear, tea, coffee, electronic products and components, textiles, clothing, rubber and marine products. Major countries that import goods from Vietnam include USA, Germany, South Korea, Japan, China, Singapore, Hong Kong and Taiwan.
The major items imported by Vietnam include motorcycles, machinery and related products, steel goods, petroleum products, fertilizer, cement, grain and cotton. Major countries that export goods to Vietnam include France, Hong Kong, India, Taiwan, South Korea and Singapore.
Vietnam has witnessed significant growth in investments in recent times from America and other countries from Asia and Europe. 다낭 페트로