VietnamCredit, a major company information provider based in Vietnam, has just launched Vietnam Country Report, which is an annual publication prepared by this agency.
Vietnam is known to the world as a land of war, which is located in Asia. However, there are more about it than that, and Vietnam Country Report by VietnamCredit will give people a detailed overview about this country.
Based on the PEST research model, this report studies four main aspects including political, economic, socio-cultural and technological environments in Vietnam in order to provide an insightful overview of Vietnam in the past, in 2020, and in the coming years.
Vietnam is led by a single party – the Communist Party of Vietnam. The country has been ruled by the Communist Party for nearly 50 years. Although the name of the party has changed from time to time, its leadership has stayed unchanged for all these years.
With such feature, it can be seen that Vietnam is a stable country with almost no political violence.
In terms of policy, according to data from the World Bank's Worldwide Governance Indicators in 2019, the quality of Vietnam's legal regulations reached 41.83/100 points, ranking 127th out of 214 countries and territories, higher than the previous years. This shows that Vietnam's policy quality is still at an lower average level. However, it has been still improving in recent times with the efforts of the government.
Vietnam offers a lot of tax incentives for FDI enterprises, however, according to the investment law in 2020, the State tends to restrict market access for FDI enterprises in some fields. Specific information on investment incentives as well as industries with limited market access is provided in the Vietnam Country Report. You can download the report here.
In 2020, like other countries in the world, Vietnam faced with many difficulties and challenges due to the impacts of the Covid-19 pandemic. However, with the dual goals of epidemic prevention and socio-economic development, Vietnam has achieved some positive results and maintained stable development.
Vietnam's economic growth reached 2.9% in 2020, which is among the highest in the world. Nikkei Asia estimated that Vietnam's economy would continue to lead in Southeast Asia in 2021, with growth forecasted at 6.5% - 6.7%.
Vietnam's GDP per capita increased about 1.8 times after 10 years, reaching approximately 3500 USD per person in 2020, ranking 6th in Southeast Asia, following Singapore, Brunei, Malaysia, Thailand and Indonesia. It is forecasted that by 2025, Vietnam's GDP per capita will reach 5211.9 USD per person.
In terms of international economic cooperation and integration, by the end of 2020, Vietnam had signed 15 free trade agreements, of which 13 have taken effect. Currently, there are two agreements under negotiation.
Regarding public debt, Vietnam has effectively managed public debt over the past 5 years, contributing to supporting the economy amid difficulties caused by the Covid-19 epidemic. According to statistics of the Ministry of Finance, by the end of 2020, public debt accounted for about 55.8% of GDP, government debt was about 49.6% of GDP, a sharp decrease compared to 63.7% and 52.7%, respectively, in 2016. National external debt on GDP per capita has also decreased gradually, from 49.9% in 2017 to 47.9% in 2020.
Vietnam's population in 2020 was estimated at 97.58 million people, an increase of more than 1.14% compared to 2019 and of 10.93% compared to 2010. Despite having the 3rd largest population in Southeast Asia, the growth rate Vietnam's population in 2020 was lower than that of the regional average, reaching 0.91%.
As for population structure by age, Vietnam is still a country with a young population with people aged 15-64 accounting for about 68.6%. However, Vietnam's population aging rate is increasing and the the number of young people is decreasing gradually.
Human Development Index (HDI) of Vietnam in 2019 was 0.704. With this result, Vietnam entered the list of countries with high human development, ranked 117th out of 189 countries and territories. From 1990 to 2019, the HDI index of Vietnam increased by nearly 46%, which puts it in the list of countries with the highest HDI growth rates in the world.
The labor force of working age in 2020 was estimated at 48.3 million people, decreasing by 849.5 thousand people compared to the previous year. The female labor force of working age was 21.9 million people, accounting for 45.4% of the country's working age workforce, down 0.2 percentage points compared to 2019.
There are currently about 687 scientific research and industrial development institutions, 13 hi-tech industrial parks and 236 universities in Vietnam.
Vietnam's total expenditure on scientific reasearch and development is 1.8 billion USD. Meanwhile, this figure in countries in the region such as Indonesia, Thailand, Malaysia, and Singapore is 2.1 billion USD, 5.2 billion USD, 9.7 billion USD and 10.1 billion USD, respectively. Accordingly, Vietnam's average R&D expenditure per employee is also very low compared to other countries in the region, reaching less than 20 USD/person.
Although Vietnam's scientific research and development is not very focused, the country is gradually becoming a digital economy. In 2020, Vietnam's e-commerce market size was 11.8 billion USD, an increase of 18% compared to 2019. This is a low growth compared to the average growth rate of 25%-30% in recent years, yet amid the Covid-19 pandemic, this is a positive result.
With the above information, Vietnam Country Report prepared by experts of VietnamCredit is expected to assist policy makers, researchers, investors and large corporations in the decision-making process.
* Data in the report is derived from stable and highly accurate statistics of reputable data sources such as the General Statistics Office, the General Department of Vietnam Customs, the Ministry of Finance, the Ministry of Labour, Invalids and Social Affairs, Ministry of Science & Technology, International Monetary Fund, Asian Development Bank, World Bank, etc.
Jimmy Le - VietnamCredit