Strong economic performance masks structural fragilities

C2

MEDIUM 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 362.638bn (World ranking 39, World Bank 2021)
Population 98.17mn (World ranking 15, World Bank 2021)
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, 2021)

Exports Rank Imports
United States 29.1%
1
33.8% China
China 17.0%
2
17.3% Korea, Republic of
Korea, Republic of 6.6%
3
6.9% Japan
Japan 6.1%
4
6.4% Taiwan
China, Hong Kong SAR 3.6%
5
4.6% United States

Trade structure by product

(% of total, 2021)

Exports Rank Imports
Telecommunication and sound recording apparatus 16.8%
1
21.4% Electrical machinery, apparatus and appliances, n.e.s.
Articles of apparel & clothing accessories 11.6%
2
8.5% Office machines and automatic data processing machines
Office machines and automatic data processing machines 11.6%
3
6.8% Textile yarn and related products
Electrical machinery, apparatus and appliances, n.e.s. 10.8%
4
4.7% Iron and steel
Footwear 7.0%
5
4.0% Petroleum, petroleum products and related materials
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