Vietnam Facts and Figures

Vietnam, located in Southeast Asia, borders China to the north, Laos and Cambodia to the west, and the South China Sea to the east. With a population of over 95 million people, Vietnam is home to vibrant cities such as Hanoi, the capital, and Ho Chi Minh City, the economic hub.

Key Milestones

Vietnam's global integration journey is marked by significant achievements, including accession to the World Trade Organization (WTO) in 2007 and membership in the Association of Southeast Asian Nations (ASEAN) since 1995. These milestones underscore Vietnam's commitment to sustainable development and international collaboration.

Historical Resilience

One of the most transformative events in Vietnam's history was the Vietnam War (1955-1975). This conflict, rooted in the Cold War rivalry, devastated the country and left lasting scars on its people and landscape. Vietnam's resilience was evident as it embarked on economic reforms in the late 1980s, known as Đổi Mới. This transformation propelled Vietnam into a thriving economic hub with robust trade partnerships. Today, Vietnam's dynamic economy reflects its ability to overcome adversity and seize opportunities for development and prosperity.

Demographics Insights

Vietnam has a total population of 100.3 million people and a population density of approximately 315.41 individuals per square kilometer. The significant working-age population, constituting 68% of the total, indicates potential for economic growth and highlights the need for job creation and skill development. The median age of 33.1 years (as of 2024) reflects a youthful population, offering opportunities for investment in education and healthcare. Vietnam's total fertility rate of 1.9 (in 2021) indicates below-replacement levels, posing long-term demographic challenges. Improvements in healthcare have led to a life expectancy at birth of 76.1 years. The crude death rate of 7 per 1,000 persons and the infant mortality rate of 16 per 1,000 live births underscore ongoing health disparities and the need for targeted interventions. Urbanization rate is 39%, transforming regional dynamics.

Economy Ascendancy

Vietnam demonstrates increasing economic prominence with a GDP of $408.8 billion in 2022, ranking 36th globally. The country's GDP growth of 8.0% in 2022, along with stable inflation rates of 3.3% in 2023 and 1.8% in 2021, reflects effective economic management. Vietnam maintains a positive trade balance of $28 billion , with imports totaling $325.8 billion and exports reaching $353.8 billion in 2023. This contributes to a trade on good and services surplus of 2.2% of GDP in 2022. Unemployment at 1.5% in 2022 underscores the labor market's resilience. Sectoral contributions to GDP show a diversified economy: agriculture accounts for 11.9%, industry for 38.3%, and services for 41.3% in 2022. Within the industrial sector, manufacturing plays a significant role, comprising 24.8% of GDP in the same year. Businesses aiming to enter these sectors can benefit from market research in Vietnam to identify opportunities and mitigate risks.

Fiscal Health

In 2022, Net Official Development Assistance (ODA) received amounted to 0.4% of Gross National Income (GNI), indicating the role of international funding in development projects. Vietnam experienced a deficit in its net lending equivalent to -1.61% of GDP in 2023, contrasting with a slight surplus of 0.26% in 2022. This shift signals either increased government spending or reduced revenue collection due to changing economic conditions. Vietnam's general government debt stood at 37.09% of GDP in 2022, indicating a manageable level of indebtedness. However, central government debt has risen from 32.46% in 2010 to 38.72% in 2021, signifying a growing debt burden on the central government relative to the size of the economy. This trend prompts questions regarding fiscal sustainability and debt management approaches.

Military Strategy

Vietnam's military, with 482,000 personnel in 2016, comprises 0.51% of the total population, showcasing the nation's strategic defense capability. The allocation of 2.3% of GDP to military expenditure in 2018 reflects Vietnam's unwavering commitment to safeguarding national security.

Conclusion

Vietnam's thriving economy and digital landscape necessitate market research to understand consumer behavior, market trends, and competition dynamics. Collaborating with a trusted market research agency in Vietnam enables businesses to gather and analyze data effectively, guiding data-driven decision-making and strategy development. By leveraging local expertise, companies can navigate the complexities of the Vietnamese market, identify opportunities, and position themselves for success in this vibrant economy.