Charting Vietnam 2Q 2019

Charting Vietnam
2Q 2019
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2 COUNTRIES 3 COUNTRIES 4 OR MORE COUNTRIES
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Viet Nam
Official name: Socialist Republic of Vietnam
Brief History
• Vietnam declared independence after World War II, but France continued to rule until its 1954
defeat by communist forces under Ho Chi MINH
• Under the Geneva Accords of 1954, Vietnam was divided into the communist North and anti-
communist South but in 1975, North Vietnamese forces overran the South reuniting the country
under communist rule
• Since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities
have committed to increased economic liberalization and enacted structural reforms needed to
modernize the economy and to produce more competitive, export-driven industries.
Geography Population and society Government

Area: 331,210 sq km (#66 in the world) Population: Government type: Communist state
97,040,334 (July 2018 est., #15 in the world)
Land boundaries: Capital: Hanoi
• Cambodia 1,228km Ethnic group (2009):
• China 1,281 km Kinh (Viet) 85.7%, Tay 1.9%, Thai 1.8%, Muong Currency: Dong (VND)
• Laos 2,130 km 1.5%, Khmer 1.5%, Mong 1.2%, Nung 1.1%, Hoa Chief of state: President Tran Dai QUANG (since 2
1%, other 4.3% April 2016)
Coastline: 3,444 km
Language: Head of government: Prime Minister Nguyen Xuan
Land use: Vietnamese (official), English (increasingly favored
• Agriculture 34.8% PHUC (since 7 April 2016)
as a second language), some French, Chinese,
• Forest 45.0% and Khmer, mountain area languages
• Other: 20.2% Cabinet: Cabinet appointed by president based on
Religions (2009):
proposal of prime minister and confirmed by General Information
Irrigated land: 45,850 sq km National Assembly This section provides a snap shot and acts
Buddhist 7.9%, Catholic 6.6%, Hoa Hao 1.7%, Cao
Freshwater withdrawal per capita: 965 cu m/yr Dai 0.9%, Protestant 0.9%, Muslim 0.1%, none as a country fact sheet. Readers will find
Election:
81.8% • president elected by the National Assembly brief history as well as information on
Natural resources:
from among its members for five-year term geography, population, society and
phosphates, coal, manganese, rare earth Working age population (15-64 yr): 70.38%
elements, bauxite, chromate, offshore oil and gas • last held on 2 April 2016 (next to be held in government.
deposits, timber, hydropower Population growth rate: 0.9% (2018 est.) spring 2021)
Source: CIA World factbook www.ChartingEconomy.com This is a licensed product and is not to be photocopied
EXECUTIVE SUMMARY
ECONOMIC PROFILE ECONOMIC OUTLOOK
Structure Competitiveness Development Growth Stability
• Vietnam is the 6th largest economy in ASEAN, around half the size of Thailand
• Vietnam’s population of around 97 million people is larger than those in Myanmar, Cambodia and
Laos combined
• Vietnam’s demographic structure is at its peak in term of working age group
• Vietnam’s economy has been industrialized over the past two decades thanks to export markets
• Apart from Singapore, Vietnam’s economy relies more on international trade than any other
ASEAN economy does Economic Structure
• Manufacturing and Trade are the two most important production sectors for Vietnam’s economy Part of the country’s economic profile,
• Economic freedom in Vietnam is the worst in ASEAN despite some improvement over the past economic structure section gives readers
useful views to understand economic
two decades
fundamental and determine what matters for
the country’s economy.
Vietnam is the 6th largest economy in ASEAN, around half the size
of Thailand
World’s Top 16 Economies

2017 GDP, USD billion, Market Exchange Rate
Measuring the size of an economy

US 19,485 Size of any economy is usually measured by
China 12,015 Indonesia 1,015.4 calculating its Gross Domestic Product (GDP)
which is the market value of all officially
Japan 4,873 Thailand 455.4 recognized final goods and services produced
within a country in a given period of time. To
Germany 3,701 compare GDP internationally, there is a need to
Singapore 323.9 convert value in local currencies to one main
ASEAN* 2,760
currency, normally USD. There are two popular
UK 2,628 Philippines 313.6 exchange rate to be used. The first one is the
official exchange rate for that particular period.
India 2,602 The second one is the so called “Purchasing
Malaysia 312.4
France 2,588 Power Parity” exchange rate, which takes into
account the difference in living expenses
Brazil 2,055 Vietnam 220.4 between countries. The first method is more
popular in comparing the size of each economy.
Italy 1,939
Myanmar 67.3
Canada 1,653 Size of Vietnam’s economy
Cambodia 22.1 Using the market exchange rate method,
Russia 1,578 Vietnam’s GDP is around USD 220 billion in
2017. It’s the sixth largest economy in ASEAN
Korea 1,540 Laos* 17.0 and around half the size of Thailand’s economy.
Australia 1,380
Brunei 12.1
Spain 1,314
Mexico 1,151
Note: (*) IMF Estimate © Charting Economy™ 8

Source: IMF World Economic Outlook Database October 2018 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s population of around 97 million people is larger than
those in Myanmar, Cambodia and Laos combined
Population Population Growth

ASEAN, Million, July 2018 est. Avg. Annual Rate of Change, Medium fertility, 2015-2020
Population
Population compares estimates from the US
Indonesia 262.8 1.061% Bureau of the Census based on statistics from
population censuses, vital statistics registration
systems, or sample surveys pertaining to the
Philippines 105.9 1.512% recent past and on assumptions about future
trends.
Vietnam 97.0 0.998%
Population growth projection
Projected by UN’s Population Division in World
Thailand 68.6 0.218% Population Prospects: 2017 Revision. There are
many sets of assumptions in the projections and
Myanmar 55.6 0.897% we show here the medium fertility scenario as a
base case.
Malaysia 31.8 1.350% Vietnam’s population

Vietnam is the third most populous country in
Cambodia 16.4 1.487% ASEAN with 97 million people, larger than those
in Myanmar, Cambodia and Laos combined. The
population growth is projected to be slightly lower
Laos 7.2 1.449% than South East Asia average in the next 5 years
with 0.998% annual growth.
Singapore 6.0 1.395%
Brunei 0.5 1.252%
SE Asia avg.
1.06%
Source: CIA World Fact book, UN’s World Population Prospects: The 2017 Revision www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s demographic structure is at its peak in term of working
age group
Demographic Structure Working age

2015, % of total population, Medium Fertility 15-64 Years, % of total population, Medium Fertility
100+
Male Female Demographic structure
90-94 Total population (both sexes combined) by five-
year age group.
80-84 Demographic projection
Projected by UN’s Population Division in World
70-74 Population Prospects: 2017 Revision. There are
many sets of assumptions in the projections and
7 6 we show here the medium fertility scenario as a
60-64 6 6 6
0 9 6 6 base case.
7 7 6
. . 5 3
50-54 . . .
2 0 . . Vietnam’s demographic structure
7 0
% %
3 4 Vietnam’s favorable demographic structure is at
40-44 % % 8
% % it peak in term of working age group. Going
%
forward the working age group (15-64) will
30-34 continue to decline from 70.2% to just below 64%
of the total population over the next 30 years.
20-24
10-14
0-4
5% 3% 1% 1% 3% 5% 2015 2025 2035 2045
Source: UN’s World Population Prospects: The 2017 Revision www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s economy has been industrialized over the past two
decades thanks to export markets
GDP composition
GDP composition – Expenditure* GDP composition – Production GDP can be determined in three ways, all of
% of total % of total which should, in principle, give the same result.
120% 50% They are the product (or output) approach,
the income approach, and the expenditure
X 100% approach. The expenditure approach is
Service 45%
summarized in the formula: GDP = C (private
80% consumption) + I (Investment) + G (public
C 40% consumption) + X (export of goods and services)
60% – M (import of goods and services). The
35% production approach measures market value of
40% all final goods and services calculated during the
I period. It sums up value add of each production
20% Industry 30%
process to avoid double counting. The value
G added shares presented in the World
0% 25% Development Indicators for agriculture, industry,
and services may not always add up to a
-20% 20% hundred percent due to FISIM and net indirect
taxes.
-40% Agriculture 15% Vietnam’s GDP composition
-60% Vietnam’s economy has been industrialized over
M
10% the past two decades, with Industry averages for
-80% around 34% of GDP over the past 10 years. The
5% industrialization of the Vietnamese economy has
-100% relied a lot on external market with the share of
export (X) kept increasing and is now more than
-120% 0% 100% of GDP.
1985 1990 1995 2000 2005 2010 2015 1985 1990 1995 2000 2005 2010 2015
Note: (*) C = Private Consumption, I = Investment including: I (capital) = Capital formation and I (inventory) = change in inventory
G = Public consumption, X = Export of goods and services, M = Import of goods and services
Source: The World Bank www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Apart from Singapore, Vietnam’s economy relies more on
international trade than any other ASEAN economy does
Trade Openness Export Import

Trade / GDP, 2017, %
Key partners Key partners Trade openness

Singapore 322.4 2017, % 2017, % The trade-to-GDP ratio is frequently used to
measure the importance of international
transactions relative to domestic transactions.
Vietnam 200.3 US 20.1% China 25.8% This indicator is calculated for each country as
the simple average (i.e. the mean) of total trade
China 14.5% South Korea 20.5%
(i.e. the sum of exports and imports of goods and
Malaysia 135.9
Japan services) relative to GDP. This ratio is often
7.9% Japan 7.8%
called the trade openness ratio.
Cambodia 124.9 South Korea 6.8% Taiwan 5.6%
Trade openness level of Vietnam
Netherlands 3.5% Thailand 5.0% Apart from Singapore, Vietnam’s economy relies
Thailand 122.8 more on international trade than any other
Hong Kong 3.3% US 3.3% ASEAN economy does. Its key trade partners
Brunei 85.2 include the US, China, South Korea, Japan,
UAE 3.1% Malaysia 2.9% Singapore and Hong Kong.
Laos 75.8 Germany 3.1% Singapore 2.4%
UK 2.5% Germany 1.8%

Philippines 70.7
Malaysia 2.2% India 1.7%
Indonesia 39.5
Main export items Main import items
clothes, shoes, electronics, seafood, machinery and equipment, petroleum products,
Myanmar 39.1 crude oil, rice, coffee, wooden products, steel products, raw materials for the clothing
machinery and shoe industries, electronics, plastics,
automobiles
Source: The World Bank, ITC, ADB, CIA World Factbook www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Manufacturing and Trade are the two most important production
sectors for Vietnam’s economy
Key Production Sectors

% of 2017 GDP (current price before taxes)
100% = 4,507,292 Billion VND
GDP composition, production side
The production approach measures market value
of all final goods and services calculated during
the period. It sums up value add of each
17% production process to avoid double counting.
Main production sectors are Agriculture, Industry
and Service. Within Industry, there are
47%
manufacturing, mining, utilities and construction.
Within Service, there are trading, transport, hotel
36% and restaurant, financial, public administration,
education, real estate, health and social, other
social and private household.
Key production sectors in Vietnam

AGRICULTURE INDUSTRY SERVICE Service accounts for 47% of 2017 GDP, followed
Manufacturing 17.0% Trade 11.9% by Industry at 36% and Agriculture at 17%.
Mining 8.3% Financial & Insurance 6.1% Within Service, Trade is the largest sector
Construction 6.4% Real Estate 5.4% accounting for 11.9% of GDP, followed by
Electricity 4.8% Food & Accommodation 4.3% Finance at 6.1%. Within Industry, Manufacturing
Water 0.6% Education, Training 3.9% is the largest sector accounting for 17.0% of
Public Admin 3.1% GDP, followed by Mining at 8.3%.
Transport 3.0%
Health & Social 2.9%
Other services 2.8%
Professional services 1.4%
Info & Communication 0.8%
Support Service 0.4%
Source: General Statistics Office; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Economic freedom in Vietnam is the worst in ASEAN despite some
improvement over the past two decades
Vietnam’s Economic Freedom Index Score Economic Freedom Score in Asia Pacific
Overall Score, 0-100 2018, Selected countries, overall score and global rank ()
Economic Freedom Index

90 HongKong (1) 90.2 The Index of Economic Freedom is published
Free
Singapore (2) 88.8 annually by The Heritage Foundation, a
FREE Malaysia (22) 74.5 Washington think tank. The Index covers 12
Mostly freedoms which can be grouped into four broad
SouthKorea (27) 73.8
Free categories:
80 Japan (30) 72.3
Thailand (53) 67.1 • Rule of law (property rights, judicial
MOSTLY FREE Philippines (61) 65.0 effectiveness, and government integrity)
Moderately • Government size (tax burden, government
Indonesia (69) 64.2 Free spending, and fiscal health)
70
Brunei (70) 64.2 • Regulatory efficiency (business freedom,
Cambodia (101) 58.7 labor freedom, and monetary freedom)
MODERATELY FREE • Market openness (trade freedom, investment
China (110) 57.8
freedom, and financial freedom)
60 SriLanka (111) 57.8
Mongolia (125) 55.7 Economic Freedom in Vietnam
Mostly Economic freedom in Vietnam is the worst in
MOSTLY UNFREE Bangladesh (128) 55.1
Unfree ASEAN despite some improvement over the past
India (130) 54.5 two decades.
50 Pakistan (131) 54.4
Burma (135) 53.9
REPRESSED
Laos (138) 53.6
Vietnam (141) 53.1
40
1995 2000 2005 2010 2015 TimorLeste (167) 48.1 Repressed
Source: The Heritage Foundation www.ChartingEconomy.com This is a licensed product and is not to be photocopied
EXECUTIVE SUMMARY
• Vietnam’s economy ranks 77th in the latest global competitiveness rankings, dropping 22 places
from the year before
• Vietnam has advantage on its peers in Market size but is quite weak in ICT adoption and Labor
market
• Minimum wage in Vietnam is slightly higher than those in Philippines, Indonesia and Laos
• Despite a higher growth, Vietnam’s labor productivity is still quite a long way behind Thailand,
Indonesia and Philippines Nation Competitiveness
• Vietnam is one of the emerging economies that are easy to do business, and it’s getting better Part of the country’s economic profile, this
• Vietnam has done much better than its neighbors such as Thailand and Philippines in attracting section explores the country’s
competitiveness in the global level. It also
FDI covers the country’s attractiveness to foreign
direct investment.
Vietnam’s economy ranks 77th in the latest global competitiveness
rankings, dropping 22 places from the year before
Global Competitiveness Ranking: Global Competitiveness Index

Vietnam East Asia Pacific
Overall ranking, full scale 2018-19, overall score and global rank ()
Global Competitiveness
World Economic Forum, the publisher of the
Singapore (2) 83.5 annual Global Competitiveness Report, defines
Japan (5) 82.5 competitiveness as the set of institutions,
policies, and factors that determine the level of
Hong Kong (7) 82.3 productivity of a country. Featuring the new
Taiwan (13) 79.3 Global Competitiveness Index 4.0, the Report
assesses the competitiveness landscape of 140
Australia (14) 78.9 economies, providing unique insight into the
South Korea (15) 78.8 drivers of economic growth in the era of the
56 55 Fourth Industrial Revolution. More information on
60 New Zealand (18) 77.5 the report can be found on its website
68 Malaysia (25) 74.4 http://www.weforum.org.
77 China (28) 72.6 Vietnam in the Global Competitiveness

Thailand (38) 67.5 Rankings
Vietnam’s economy ranks 77th in the world in the
Indonesia (45) 64.9 2018-2019 global competitiveness rankings,
Philippines (56) 62.1 down 22 places from the year before. It ranks
highest among CLMV economies.
Brunei (62) 61.4
Viet Nam (77) 58.1
Mongolia (99) 52.7
Cambodia (110) 50.2
Lao PDR (112) 49.3
2014-15 2015-16 2016-17 2017-18 2018-19
Source: The Global Competitiveness Report 2018-2019, World Economic Forum www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam has advantage on its peers in Market size but is quite
weak in ICT adoption and Labor market
The Global Competitiveness Index

2018-2019, score = 0-100
Vietnam Brunei Cambodia Indonesia Laos Malaysia Philippines Singapore Thailand
100
The Global Competitiveness Index
90 The Global Competitiveness Index 4.0
framework is organized into 12 main
80 drivers of productivity, or ‘pillars’. It places a
premium on factors that will grow in significance
70 as the 4th Industrial Revolution gathers pace:
human capital, agility, resilience, and innovation.
60
Global Competitiveness Index: Vietnam and
50 comparable
Vietnam has advantage on its peers in Market
size but is quite weak in ICT adoption and Labor
40
market.
30
20
10
0
Institutions Infrastructure ICT Macroeconomic Health Skills Product Labor Financial Market Business Innovation
adoption Stability Market Market System Size Dynamism Capability
Enabling Environment Human Capital Markets Innovation Ecosystem
Source: The Global Competitiveness Report 2018-2019, World Economic Forum www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Minimum wage in Vietnam is slightly higher than those in
Philippines, Indonesia and Laos
Minimum Monthly Wage

Effective as of Jan 1st, 2019, US$
Australia 2,157
New Zealand 1,949 International Wage Comparison
Germany 1,803 International Labour Organization collects
United Kingdom 1,755 statutory nominal gross monthly minimum wage
South Korea 1,583 from countries around the world. Data on
United States 1,276 earnings are presented in nominal terms and on
Japan 1,217 the basis of the minimum of monthly earnings of
Hong Kong 775 all employees as of January 1st of each year. In
cases where a national minimum wage is not
Singapore 733
mandated, the minimum wage in place in the
Taiwan 719
capital or major city is used. In countries where
Malaysia 242 the minimum wage is set at the sectoral level or
Thailand 204 occupational level, the minimum wage for
China 145 manufacturing or unskilled workers is generally
Cambodia 140 applied. Market exchange rate is applied by
Nepal 120 Charting Economy to get the USD term.
Vietnam 119
Indonesia 109 Wages in Vietnam
Pakistan 108 Minimum monthly wages in Vietnam is around
Philippines 102 USD 119, slightly higher than those in Indonesia,
Philippines and Laos.
Laos 100
Azerbaijan 76
Kazakhstan 64
Sri Lanka 55
Bhutan 54
Myanmar 51
India 51
Bangladesh 18
Source: ILO, Wikipedia; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Despite a higher growth, Vietnam’s labor productivity is still quite
a long way behind Thailand, Indonesia and Philippines
Labor productivity
Per person employed in 2017 US$ (converted to 2016 price level with updated 2011 PPPs)
Cumulative
Annual Growth
Rate, 2000-2018
40,000
Labor Productivity
Labor productivity per person employed in 2017
35,000 US$ (converted to 2016 price level with updated
Thailand (3.3%)
2011 PPPs). Compiled and computed by The
Conference Board from macro economic
30,000 indicators in each country. This indicates labor
Indonesia (3.7%)
productivity of the whole economy and is useful
for analyzing the macro trend.
25,000
Philippines (3.0%) Labor Productivity in Vietnam
Labor Productivity in Vietnam grew 4.6%
20,000
annually between 2000-2018. Despite a higher
growth, it is still quite a long way behind
Thailand, Indonesia and Philippines.
15,000
Vietnam (4.6%)
10,000
Cambodia (4.5%)
5,000
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Source: The Conference Board Total Economy Database™ www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam is one of the emerging economies that are easy to do
business, and it’s getting better
Ease of Doing Business Ranking

Selected economies, ( ) = 2019 rank, DTF* score
Ease of Doing Business
New Zealand (1) 86.6 Doing Business sheds light on how easy or
difficult it is for a local entrepreneur to open and
Singapore (2) 85.2
run a small to medium-size business when
Hong Kong (4) 84.2 Vietnam’s DTF* score complying with relevant regulations. It measures
South Korea (5) 84.1 2019 vs 2018 and tracks changes in regulations affecting 11
areas in the life cycle of a business: starting a
Taiwan (13) 80.9 business, dealing with construction permits,
TOPICS DB 2019 DB 2018 Change getting electricity, registering property, getting
Malaysia (15) 80.6
credit, protecting minority investors, paying
Thailand (27) 78.5 Overall 68.36 66.77 taxes, trading across borders, enforcing
Japan (39) 75.7 Starting a Business 84.82 82.02 contracts, resolving insolvency and labor market
regulation.
China (46) 73.6 Dealing with Construction Permits 79.05 79.03
Brunei (55) 72.0 Getting Electricity 87.94 78.69 Doing Business in Vietnam
Vietnam’s economy ranks 69th in the world on the
Vietnam (69) 68.4 Registering Property 71.09 70.61
World Bank’s Ease of Doing Business 2019
Indonesia (73) 68.0 Getting Credit 75.00 75.00 ranking. It’s ranking is only lower than Singapore,
Protecting Minority Investors 55.00 55.00 Malaysia, Brunei and Thailand among ASEAN
India (77) 67.2
countries. It has improved on 6 out of 10 key
Sri Lanka (100) 61.2 Paying Taxes 62.87 61.12 factors over the past year.
Philippines (124) 57.7 Trading Across Borders 70.83 70.83
Cambodia (138) 54.8 Enforcing Contracts 62.07 60.22
Laos (154) 51.3 Resolving Insolvency 34.93 35.16
Myanmar (171) 44.7
Note: (*) An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier © Charting Economy™ 20
Source: Doing Business 2019 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam has done much better than its neighbors such as
Thailand and Philippines in attracting FDI
FDI into Vietnam and comparable countries Average FDI, 2015-2017 Foreign direct investment, net inflows (BoP,
Net inflows, % of GDP Net inflows, Current US$ billion current US$)
Foreign direct investment are the net inflows of
investment to acquire a lasting management
12% Singapore 69.5 interest (10 percent or more of voting stock) in an
enterprise operating in an economy other than
India 42.8 that of the investor. It is the sum of equity capital,
reinvestment of earnings, other long-term capital,
10% Indonesia 15.3 and short-term capital as shown in the balance of
payments. This series shows net inflows (new
Vietnam 12.8
investment inflows less disinvestment) in the
Malaysia 10.9 reporting economy from foreign investors. Data
8% are in current U.S. dollars.
Philippines 8.0
Vietnam Foreign direct investment, net inflows (% of
Thailand 6.6 GDP)
6% This series shows net inflows (new investment
Myanmar 4.0 inflows less disinvestment) in the reporting
economy from foreign investors, and is divided
Bangladesh 2.4 by GDP.
4%
Philippines Pakistan 2.3
Foreign direct investment into Vietnam
Cambodia 2.3 FDI into Vietnam exploded ever since it joined
WTO in 2007. Despite recent decline, the current
2% Lao PDR 1.1 level of around 6% of GDP is still higher than
pre-2007 level. In absolute term, FDI into
Sri Lanka 1.0 Vietnam is slightly behind Indonesia, with an
Thailand
average of USD 12.8 billion a year over the past
0% Brunei 0.2 three years.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EXECUTIVE SUMMARY
• Vietnam’s per capita income has grown quite impressively and is quite close to India
• Poverty reduction in Vietnam has been quite effective with the latest poverty rate closer to those
in Thailand
• Unemployment rate in Vietnam has been declining and is lower than most in the region
• Income distribution in Vietnam is better than in most ASEAN countries
• Vietnam’s Human Development Index has improved over the past three decades and now ranks
at the same place as Indonesia Economic Development
• Life expectancy in Vietnam has been above the average level of developing countries in the region Part of the country’s economic profile, this
• Vietnam has reached one of the 17 SDGs in “No Poverty” but faces major challenges in 6 of the section explores the country’s economic
remaining goals development, average income and its
distribution, poverty as well as other
development indicators.
Vietnam’s per capita income has grown quite impressively and is
quite close to India
Growth in GNI per capita GNI per capita comparison

Purchasing Power Parity in 2011 international dollars 2017, Purchasing Power Parity in current international dollars
GNI per capita, PPP
Singapore 90,570 GNI per capita based on purchasing power parity
10,000
(PPP). PPP GNI is gross national income (GNI)
Brunei 83,090 converted to international dollars using
9,000 Malaysia 28,650 purchasing power parity rates. An international
Philippines
dollar has the same purchasing power over GNI
CAGR = 3.1% Thailand 17,090
8,000 as a U.S. dollar has in the United States. GNI is
China 16,760 the sum of value added by all resident producers
Sri Lanka 12,470 plus any product taxes (less subsidies) not
7,000 included in the valuation of output plus net
Indonesia 11,900 receipts of primary income (compensation of
6,000 Mongolia 11,170 employees and property income) from abroad.
India The constant 2011 international dollars version is
CAGR = 4.9% Philippines 10,030 useful to calculate real growth while the current
5,000
Vietnam Bhutan 8,850 international dollars version is useful to compare
CAGR = 5.4% per capita income level across countries.
4,000 India 7,060
Lao PDR 6,650 Vietnam’s per capita income
3,000 Vietnam Vietnam’s real per capita income grew on
6,450
average 5.4% a year since 1990. In 2017,
Myanmar 5,830 Vietnam’s per capita income was at USD 6,450,
2,000 slightly lower than India and Laos.
Pakistan 5,830
1,000 Bangladesh 4,040

Cambodia 3,760
0 Nepal 2,710
1990 1995 2000 2005 2010 2015
Source: The World Bank; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Poverty reduction in Vietnam has been quite effective with the
latest poverty rate closer to those in Thailand
Vietnam’s Poverty Headcount Poverty Headcount in Asia Pacific

% of population living below the national poverty line % of population living below the national poverty line
25% Timor-Leste (2014) 41.8%

Papua New Guinea (2009) 39.9% Poverty headcount
Myanmar (2015) 32.1% There can be various definitions of poverty, we
use National poverty rate, the percentage of the
Nepal (2010) 25.2% population living below the national poverty line.
20%
Bangladesh (2016) 24.3% National estimates are based on population-
weighted subgroup estimates from household
Pakistan (2015) 24.3% surveys.
Lao PDR (2012) 23.4%
15% Vietnam’s poverty headcount
India (2011) 21.9% Poverty reduction in Vietnam has been quite
Mongolia (2014) 21.6% effective with the latest poverty rate of 9.8%
closer to those in Thailand.
Philippines (2015) 21.6%
10% Cambodia (2012) 17.7%
Indonesia (2017) 10.6%
Vietnam (2016) 9.8%
5% Thailand (2016) 8.6%
Bhutan (2017) 8.2%
Sri Lanka (2016) 4.1%
Malaysia (2015) 0.4%
0%
2006 2008 2010 2012 2014 2016
Source: World Bank www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Unemployment rate in Vietnam has been declining and is quite
low compared to others in the region
Unemployment rate in Vietnam Projected Unemployment rate*

% of total labor force 2018, % of total labor force
Unemployment rate
Unemployment rate can be defined by either the
6% Mongolia 8.0% national definition, the ILO harmonized definition,
or the OECD harmonized definition. The OECD
Brunei 6.9%
harmonized unemployment rate gives the
Pakistan 6.1% number of unemployed persons as a percentage
5% of the labor force (the total number of people
Philippines 5.5% employed plus unemployed). As defined by the
Indonesia 5.2% International Labour Organization, unemployed
workers are those who are currently not working
4% Sri Lanka 4.4% but are willing and able to work for pay, currently
available to work, and have actively searched for
China 4.0%
work. For Vietnam’s data, it is defined by the
Myanmar 4.0% national definition.
3%
Taiwan 3.8% Unemployment rate in Vietnam
Korea Unemployment rate in Vietnam has been
3.7%
declining and is quite low compared to others in
2% Malaysia 3.2% the region. It is expected to be around 2.2% in
2018.
Japan 2.9%
Hong Kong 2.6%
1%
Vietnam 2.2%
Singapore 2.0%
0% Thailand 0.7%
2006 2008 2010 2012 2014 2016 2018
Note: (*) Forecasted by IMF in World Economic Outlook report, October 2018
Source: IMF; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Income distribution in Vietnam is better than in most ASEAN
countries
GINI Coefficient
Cambodia (2012) 0.308

South Korea (2012) 0.316 GINI coefficient
• The Gini coefficient is a The Gini coefficient measures the inequality
Japan (2008) 0.321 measure of inequality of a among values of a frequency distribution (for
Mongolia (2016) 0.323 distribution of income example levels of income). A Gini coefficient of
Pakistan (2015) 0.335 zero expresses perfect equality where all values
• It is defined as a ratio with are the same (for example, where everyone has
India (2011) 0.352 values between 0 and 1 an exactly equal income). A Gini coefficient of
Vietnam (2016) 0.353 • Here, 0 corresponds to one (100 on the percentile scale) expresses
perfect income equality (i.e. maximal inequality among values (for example
Thailand (2015) 0.360 everyone has the same where only one person has all the income).
Bhutan (2017) 0.374 income)
Laos (2012) 0.379 • 1 corresponds to perfect Income distribution in Vietnam
income inequality (i.e. one Income distribution in Vietnam is better than in
Myanmar (2015) 0.381 person has all the income, most ASEAN countries. Its latest GINI coefficient
Indonesia (2013) 0.395 while everyone else has is around 0.353.
zero income)
Sri Lanka (2016) 0.398
Malaysia (2015) 0.410 • Therefore, the lower the
Brunei (2005) 0.413 ratio the better the income
distribution.
China (2012) 0.422
Philippines (2012) 0.430
Singapore (2006) 0.476
Source: World Bank, ASEAN Community In Figures 2011 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s Human Development Index has improved over the past
three decades and now ranks at the same place as Indonesia
Human Development Index (HDI) HDI scores and rank

Score 0-1, 1990-2017 2017, selected countries
Very High Human Development High Human Development

0.80 1 Norway 0.9530 64 Turkey 0.7910
Human Development Index
World 3 Australia 0.9390 74 Mexico 0.7740
Human Development Index (HDI): A composite
7 Hong Kong, China (SAR)
0.9330 76 Sri Lanka 0.7700
index measuring average achievement in three
0.70
Indonesia 9 Singapore 0.9320 79 Brazil 0.7590
basic dimensions of human development—a long
13 United States 0.9240 83 Thailand 0.7550 and healthy life, knowledge and a decent
0.60 14 United Kingdom 0.9220 86 China 0.7520 standard of living. HDI is calculated every year
Vietnam 19 Japan 0.9090 86 China 0.7520 by UNDP.
22 Korea (Republic of)0.9030 92 Mongolia 0.7410
0.50 39 Brunei Darussalam0.8530 92 Fiji 0.7410 Vietnam’s HDI and ranking
57 Malaysia 0.8020 95 Tunisia 0.7350 Vietnam’s Human Development Index has
0.40 58 Kazakhstan 0.8000 101 Maldives 0.7170 improved over the past three decades and now
Medium Human Development Low Human Development ranks at the same place as Indonesia.
113 Philippines 0.6990 155 Syrian Arab Republic
0.5360
0.30
116 Indonesia 0.6940 157 Nigeria 0.5320
116 Viet Nam 0.6940 158 Rwanda 0.5240
0.20 130 India 0.6400 161 Madagascar 0.5190
134 Bhutan 0.6120 168 Afghanistan 0.4980
136 Bangladesh 0.6080 170 Côte d'Ivoire 0.4920
0.10
139 Lao People's Democratic
0.6010 Republic 178 Yemen 0.4520
146 Cambodia 0.5820 183 Burkina Faso 0.4230
0.00 148 Myanmar 0.5780 186 Chad 0.4040
1990 1995 2000 2005 2010 2015 149 Nepal 0.5740 188 Central African Republic
0.3670
150 Pakistan 0.5620 189 Niger 0.3540
Source: UNDP’s Human Development Report 2018 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Life expectancy in Vietnam has been above the average level of
developing countries in the region
Life expectancy at birth Mortality rate, under-5 Life basic facilities Life expectancy at birth
Total (years) per 1,000 live births % of population with access Life expectancy at birth indicates the number of
years a newborn infant would live if prevailing
patterns of mortality at the time of its birth were
80 200 100%
Vietnam to stay the same throughout its life.
Water source
180 90% Mortality rate under 5 per 1000 live births
70
Under-five mortality rate is the probability per
Developing 160 80% 1,000 that a newborn baby will die before
60 East Asia & Pacific reaching age five, if subject to current age-
specific mortality rates.
140 70%
Least developed
50 countries Water source access
120 60% The percentage of people using at least basic
Sanitation
Least developed
facilities water services. This indicator encompasses
countries both people using basic water services as well as
40 100 50%
those using safely managed water services.
80 40%
30 Sanitation facilities access
Developing
East Asia & Pacific The percentage of people using at least basic
60 30% sanitation services, that is, improved sanitation
20 facilities that are not shared with other
40 20% households.
10 Vietnam Quality of life in Vietnam

20 10%
Life expectancy in Vietnam has been above the
average level of developing countries in the
0 0 0% region.
1968 1978 1988 1998 2008 1968 1978 1988 1998 2008 2000 2005 2010 2015
Vietnam has reached one of the 17 SDGs in “No Poverty” but
faces major challenges in 6 of the remaining goals
The SDG Index score Vietnam’s SDG Dashboard* The SDG Index and Dashboards
Selected countries in East and South Asia, ( ) = Global rank 2018 Agenda 2030 and the Sustainable Development
Goals (SDGs), which were adopted by all
Singapore (43) 71.3 GOAL 1: No Poverty member states of the United Nations in 2015,
describe a universal agenda that applies to and
China (54) 70.1 GOAL 2: Zero Hunger
must be implemented by all countries, both
Malaysia (55) 70.0 GOAL 3: Good Health and Well-being developed and developing. To complement the
GOAL 4: Quality Education official SDG indicators and voluntary
Vietnam (57) 69.7 country-led follow-up and review processes, the
GOAL 5: Gender Equality
Thailand (59) 69.2 Sustainable Development Solutions Network
GOAL 6: Clean Water and Sanitation (SDSN) and Bertelsmann Stiftung published
Bhutan (83) 65.4
GOAL 7: Affordable and Clean Energy annual global unofficial SDG index and
Philippines (85) 65.0 Dashboards to enable countries to take stock of
GOAL 8: Decent Work and Economic Growth where they stand with regards to fulfilling the
Sri Lanka (89) 64.6
GOAL 9: Industry, Innovation and Infrastructure SDGs and to help countries set priorities for early
Mongolia (95) 63.9 action.
GOAL 10: Reduced Inequality
Indonesia (99) 62.8
GOAL 11: Sustainable Cities and Communities The SDG Index score signifies a country’s
Nepal (102) 62.8 GOAL 12: Responsible Consumption and Production position between the worst (0) and best (100)
Lao PDR (108) 60.6 outcomes. An overall index score of 85.6
GOAL 13: Climate Action suggests that the country is on average 85.6% of
Cambodia (109) 60.4 GOAL 14: Life Below Water the way to the best possible outcome across
Bangladesh (111) 59.3 GOAL 15: Life on Land the 17 SDGs.
India (112) 59.1 GOAL 16: Peace and Justice Strong Institutions Vietnam’s SDGs
Myanmar (113) 59.0 GOAL 17: Partnerships to achieve the Goal Vietnam has reached one of the 17 SDGs in “No
Poverty” but faces major challenges in 6 of the
Pakistan (126) 54.9 (*) To assess a country’s progress on a particular indicator, such absolute quantitative remaining goals.
thresholds are introduced to differentiate between situations where an SDG threshold
Brunei (n.a.)
has been met (green), where significant challenges remain (yellow & orange), and where
major challenges must be overcome if the country is to meet the goal (red).
Source: SDG Index and Dashboards Report 2018 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
EXECUTIVE SUMMARY
• Over the past 10 years, Vietnam’s economy has grown on average 6% per year, lowest among
CLMV but higher than major ASEAN economies
• In 2018, Vietnam’s economic expansion accelerated with 7.1% growth driven mainly by
Manufacturing and Trade
• On the expenditure side, Export has long been the key driver for Vietnam’s economic growth
• Vietnam’s economic expansion accelerated in 4Q18 with 7.3% year-on-year growth, higher than
in most economies in the region
• Vietnam’s economy is projected to grow above 6% annually over the next three years Economic Growth
Part of the country’s economic outlook, this
section explores the country’s recent
economic growth, its key drivers and well as
the growth outlook for the coming years.
Over the past 10 years, Vietnam’s economy has grown on average 6%
per year, lowest among CLMV but higher than major ASEAN economies
Real GDP growth vs China and India Real GDP growth vs Peers
Annual percentage change Annual percentage change
12% 10%
China, 8.2% Philippines, Myanmar, 6.3%
10% 8% 5.6% Cambodia,
India, 7.0% 6.2%
Economic growth
8%
6% Economic growth is the increase in the amount of
6% the goods and services produced by an economy
Vietnam, over time. It is conventionally measured as the
Vietnam, 4% 6.0%
Indonesia, 5.6%
4% 6.0% percent rate of increase in real gross domestic
2% 2% product, or real GDP. Growth is usually
calculated in real terms – i.e., inflation-adjusted
0% 0% terms – to eliminate the distorting effect of
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 inflation on the price of goods produced.
Real GDP growth vs Emerging economies Real GDP growth vs Developed economies Historical growth of Vietnam’s economy
Annual percentage change Annual percentage change Over the past 10 years, Vietnam’s economy has
grown on average 6% per year, lowest among
12% 8%
Vietnam, 6.0% CLMV but higher than major ASEAN economies.
10% EM Asia, 7.3%
6%
8% 4%
US, 1.5%
6% 2%
4% Vietnam, 6.0% 0% Japan, 0.5%
2% MENA, 3.4% -2% Euro area
0.6%
0% -4%
-2% Latam&Caribbean, -6%
2.1%
-4% -8%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: (*) Labels denote countries and their cumulative annual growth rate between 2008-2017 © Charting Economy™ 31
In 2018, Vietnam’s economic expansion accelerated with 7.1%
growth driven mainly by Manufacturing and Trade
Real growth by production sectors Contribution to GDP growth

2018, % change of value added from last year Percentage point
Manufacturing 13.0% GDP 7.1% Real GDP growth by production sectors

Utilities 9.9% Manufacturing 2.3% It shows the real growth rate of value add from
each production sector.
Construction 9.2% Trade 0.8%
Trade 8.5% Net taxes 0.7% GDP growth contribution from production
Finance & Insurance 8.2% Construction 0.6% sectors
GDP growth contribution from production sectors
Transport 7.9% Agriculture 0.6% shows each sector’s contribution to the total GDP
Info & Commu 7.8% Finance & Insurance 0.5% growth. The contribution from each sector must
add up to the total GDP growth.
Health & Social 7.1% Utilities 0.5%
Education 7.1% Food & Accom 0.3% Most contributing sectors for Vietnam’s
GDP 7.1% Transport 0.2% economy in 2018
In 2018, Vietnam’s economic expansion
Professional services 6.9% Real Estate 0.2%
accelerated with 7.1% growth driven mainly by
Household Activities 6.8% Education 0.2% Manufacturing and Trade. It’s also worth noting
Food & Accom 6.8% Other Service Activities 0.2% that the growth was broad based with all sectors
experienced increases except Mining.
Net taxes 6.1% Public admin 0.1%
Other Service Activities 5.9% Professional services 0.1%
Public admin 4.6% Info & Commu 0.1%
Real Estate 4.3% Health & Social 0.1%
Agriculture 3.8% Household Activities 0.0%
Mining -3.1% Mining -0.2%
Source: General Statistics Office; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
On the expenditure side, Export has long been the key driver for
Vietnam’s economic growth
Contribution to GDP growth

Year-on-year, Percentage point
Expenditure 2013 2014 2015 2016 2017 2018 Real growth by expenditure
Real GDP growth and the growth in each of its
composition on the expenditure side which are C
C 6.8% 4.0% 6.1% 4.9% 4.9%
= Private Consumption, I = Investment including:
I (capital) = Capital formation and I (inventory) =
G 0.9% 0.4% 0.4% 0.5% 0.5%
change in inventory G = Public consumption, X
= Export of goods and services, M = Import of
I (capital) 2.9% 2.5% 2.6% 2.9% 3.1%
goods and services
I (inventory) 0.4% 0.2% 0.2% 0.2% 0.2%
GDP growth contribution
Growth contribution shows portions of the total
I 3.4% 2.7% 2.8% 3.1% 3.2%
growth from each composition. They must add
up to the total growth. Import is a deduction to
X 29.0% 10.6% 12.2% 14.2% 18.3%
GDP and the growth in Import contributes
negatively to the overall GDP growth.
M -28.5% -11.6% -17.5% -16.3% -20.3%
Growth drivers for Vietnam’s economy
Discrepancy -0.5% -0.1% 2.6% -0.1% 0.1%
On the expenditure side, Export has long been
the key driver for Vietnam’s economic growth.
GDP 11.0% 6.0% 6.7% 6.2% 6.8% 7.1%
Note: (*) C = Private Consumption, I = Investment including: I (capital) = Capital formation and I (inventory) = change in inventory
G = Public consumption, X = Export of goods and services, M = Import of goods and services
(**) GDP = C + I + G + X - M
Source: The World Bank, General Statistics Office; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s economic expansion accelerated in 4Q18 with 7.3%
year-on-year growth
Real GDP growth

Year-on-year, 4Q18
Vietnam’s Real GDP growth
Year-on-year, last 8 quarters
Mongolia 7.7%
Vietnam 7.3%
India 6.6% 7.7% GDP growth in the latest quarter
7.5% 7.5% 7.3% Real GDP growth in the latest quarter from major
China 6.4% economies in the world sorted from highest to
6.7% 6.8%
lowest.
Philippines 6.1% 6.3%
Indonesia 5.2% Vietnam’s economic growth in the latest
quarter
Malaysia 4.7% 5.2% Vietnam’s economic expansion accelerated in
4Q18 with 7.3% year-on-year growth. This level
Thailand 3.7%
of growth is the highest in ASEAN.
South Korea 3.2%
US 3.1%
Australia 2.3%
Singapore 1.9%
Taiwan 1.8%
Hong Kong 1.3%
Euro area 1.1%
Japan 0.3% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Source: CEIC, General Statistics Office; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s economy is projected to grow above 6% annually over
the next three years
GDP growth projections

% of real growth from the year before
2018 2019 2020

India 7.3 7.4 7.7
Cambodia 7.0 6.8 6.5 GDP Growth Projections
Laos 6.8 7.0 7.0 GDP growth projection is an exercise done by
various parties, international and domestic. We
Vietnam 6.6 6.5 6.5 use the projections by International Monetary
China 6.6 6.2 6.2 Fund which releases in its World Economic
Outlook report in April and October of every year.
Philippines 6.5 6.6 6.6
Myanmar 6.4 6.8 7.0 Growth Projections for Vietnam’s economy
Vietnam’s economy is projected to grow above
ASEAN-5 5.3 5.2 5.2 6% annually over the next three years. This level
Indonesia 5.1 5.1 5.2 of growth is lower than other CLMV economies
but higher than the average growth of ASEAN-5.
Malaysia 4.7 4.6 4.8
Maldives 4.7 5.0 5.5
Thailand 4.6 3.9 3.7
World 3.7 3.7 3.7
Singapore 2.9 2.5 2.7
United States 2.9 2.5 1.8
Brunei 2.3 5.1 4.3
Euro area 2.0 1.9 1.7
Japan 1.1 0.9 0.3
Source: IMF World Economic Outlook October 2018 www.ChartingEconomy.com This is a licensed product and is not to be photocopied
EXECUTIVE SUMMARY
• Vietnam has tamed its inflation problem quite impressively over the past few years and it’s expected to
be moderate in 2019
• With low inflation prospect, SBV has maintained low policy interest rates to accommodate growth
• Vietnam’s banking sector is healthy, at least on paper, with no official report of the full amount of NPL in
the system
• Vietnam’s fiscal balance is not as healthy as others in ASEAN with continuous deficits while its public
debt is reaching dangerous level
• Current account surplus and capital inflow were the main reasons for the surge in its foreign reserves Economic Stability
• Vietnam’s international reserves have increased over the past year but are still not adequate to cover its Part of the country’s economic outlook, this
section explores the country’s macro
short-term external debt and import needs
economic risks, including inflation, financial
• Due to its fixed value with USD, the Vietnamese Dong has barely moved during the first quarter of 2019 sector, budget deficit as well as balance of
payment and exchange rate.
Vietnam has tamed its inflation problem quite impressively over
the past few years and it’s expected to be moderate in 2019
Inflation in Vietnam Projected Inflation*

Annual percentage change in consumer price index 2019, annual percentage change in CPI
25% Myanmar 5.8%

India 4.9%
Inflation
Laos 4.5% Inflation is normally calculated from the change
Vietnam 4.0% in the Consumer Price Index (CPI). CPI is the
20%
general price level of goods and services
Philippines 4.0% purchased by consumers.
Indonesia 3.8%
Inflation in Vietnam
15% World 3.8% Vietnam has tamed its inflation problem quite
impressively over the past few years, thanks
Cambodia 3.3% mainly to low global oil price. It is projected to
China rise moderately to around 4% in 2019.
2.4%
10% Malaysia 2.3%
Advanced econ 1.9%
Euro area 1.7%
5% Singapore 1.4%
Japan 1.3%
Thailand 0.9%
0%
2007 2009 2011 2013 2015 2017 2019
Brunei 0.5%
With low inflation prospect, SBV has maintained low policy
interest rates to accommodate economic growth
Vietnam’s Policy Rate

Percent
8.0%
Policy Interest rate

Discount rate 7.0% State Bank of Vietnam, the central bank, is
responsible for the country’s monetary policy
which is currently using fixed exchange rate
6.0% framework. Discount rate and Refinancing rate
are the two key policy rates for the State Bank of
Vietnam to achieve its monetary objective.
5.0%
Refinancing rate
Latest development
With low inflation prospect, SBV has maintained
4.0% low policy interest rates to accommodate
economic growth.
3.0%
2.0%
1.0%
0.0%
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
Source: State Bank of Vietnam www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s banking sector is healthy, at least on paper, with no
official report of the full amount of NPL in the system
Vietnam’s Banking sector Bank Capital ratio

2017, % of assets
12%
Indonesia 15.2%
Bank capital to Stability in banking sector
Cambodia 14.0% Stability in banking sector is achieved when there
assets ratio (%)
Bhutan 13.0% is a high capital ratio as well as low bad debt
10%
among banks. Capital ratio is bank capital
US 11.7% divided by assets. Bad debt is usually measured
Malaysia 11.2% by gross non-performing loan divided by total
loans.
8%
Thailand 10.7%
Vietnam’s banking sector
Philippines 10.0%
Vietnam’s banking sector is healthy, at least on
Hong Kong 9.8% paper, with no official report of the full amount of
6%
NPL in the system.
Singapore 9.2%
China 8.6%
4% Gross NPL to Sri Lanka 8.4%
Total loans (%)
Vietnam 7.8%
India 7.4%
2%
Pakistan 7.1%
Australia 6.9%
0% Germany 6.3%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: The World Bank; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s fiscal balance is not as healthy as others in ASEAN with
continuous deficits while its public debt is reaching dangerous level
Vietnam’s General government Projected General government Projected General

structural balance structural balance* government debt*
% of GDP 2018, % of GDP 2018, % of GDP
Fiscal or Government budget balance
2%
2.4 Korea 40.4 Budget balances are the government revenues
net of the government expenditures. When
2.2 Singapore 112.9 compared across countries, it is commonly
1.5 Hong Kong 0.1 standardized in the form of percentage of GDP.
0.9 New Zealand 30.4 Public debt

0%
Public debt includes direct government debt,
-0.7 Euro area 84.4
debt of State Enterprises and others. When
-0.8 Thailand 41.9 compared across countries, it is commonly
standardized in the form of percentage of GDP.
-1.1 Philippines 39.8 Public debt of over 60% of GDP is widely
-1.2 Australia 40.5 considered dangerous to the fiscal health.
-2%
-1.9 Taiwan 34.4 Vietnam’s fiscal situation
Vietnam’s fiscal balance is not as healthy as
-2.1 Indonesia 29.8
others in ASEAN with continuous deficits while
-2.7 Malaysia 55.1 its public debt is reaching dangerous level.
-4% -3.7 Japan 238.2
-4.2 China 50.1
-5.1 United States 106.1
-6.6 India 69.6

-6% 57.8
N.A. Vietnam
2007 2009 2011 2013 2015 2017
Source: Asian Development Bank, IMF www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam’s current account surplus and capital inflow were the
main reason for recent surge in its foreign reserves
Vietnam’s Balance of Payment Projected Current Account balance

USD billion 2018*, % of GDP
Balance of Payment
Essentially, Balance of Payment should always
14 Current Account Capital Flow Singapore 18.5%
equals zero. From there, we can form simple
Thailand 9.1% equation: Current Account + Capital flow =
12 change in Reserve Assets. Current Account
Brunei 7.8% balance equals Trade balance plus Net Services.
10 Korea 5.0%
Current Account balance reflects the capability of
Japan 3.6% a country to obtain foreign exchange through
8 commercial means while Capital flow include net
Hong Kong 3.4%
direct and indirect investment.
6 Malaysia 2.9%
Vietnam's Balance of Payment
Vietnam 2.2% Vietnam’s current account surplus and capital
4
China 0.7% inflow were the main reason for recent surge in
its foreign reserves. Vietnam’s current account
2 Philippines -1.5% surplus is projected to be around 2.2% of GDP in
2018.
Indonesia -2.4%
0
Sri Lanka -2.9%
-2 India -3.0%
Myanmar -5.3%
-4
Cambodia -10.8%
-6 Laos -13.9%
1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18
Vietnam’s international reserves have increased over the past year but
are still not adequate to cover for both its short-term external debt and
import needs
International Reserves Short-term External Debt Import Cover International reserves

USD Billion % of international reserves International reserves as months of import International reserve assets refer to external
assets that are held or controlled by central bank
and are readily available for immediate uses, for
60 100% 4.0
instance, in financing payment imbalances or in
implementing exchange rate policy.
90%
50 External debt
80% External debt refers to the remaining outstanding
3.0 portion of liabilities (excluding equity) which
residents have over nonresidents of an economy.
70%
40 Short-term external debt should not exceed the
country’s international reserves.
60%
Import Cover
30 50% 2.0 Ratio of the country’s international reserves to
the average value of its import of goods and
40% services per month. A country should be able to
cover at least 3 months of Import.
20
30% Vietnam’s International Liquidity
1.0 Vietnam’s international reserves have increased
20% over the past year but are still not adequate to
10 cover for both its short-term external debt and
10% import needs.
0 0% 0.0
May-16 May-17 May-18 2008 2010 2012 2014 2016 1Q16 3Q16 1Q17 3Q17 1Q18
Source: IMF, ADB; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Vietnam Dong depreciated only 2.2% against USD and
outperformed most currencies in the region in 2018
Currency Performance Analysis

Change in value against USD, percentage
1-year 3-year 5-year

Return Analysis
(2018) (2016-2018) (2014-2018)
Japan - JPY 2.4% 9.4% -4.5%
Cambodia - KHR 0.6% 1.1% -0.3%
Thailand - THB 0.6% 11.3% 1.2% Exchange rate
Hong Kong - HKD -0.2% -1.0% -1.0% A stable exchange rate is preferred in the world
where most countries adopt floating rate policy.
Bangladesh - BDT -0.7% -6.3% -7.2%
Volatile exchange rate can certainly harm
Malaysia - MYR -1.7% 4.0% -20.6% international trade and investment.
Singapore - SGD -2.0% 3.8% -7.2%
Brunei - BND -2.0% 3.6% -7.3% Vietnam’s exchange rate
Vietnam Dong depreciated only 2.2% against
Vietnam - VND -2.2% -3.7% -9.2%
USD and outperformed most currencies in the
Laos - LAK -2.8% -4.8% -6.3% region in 2018.
Taiwan - TWD -2.9% 7.6% -2.1%
South Korea - KRW -4.2% 5.6% -5.2%
Philippines - PHP -4.9% -10.7% -15.5%
China - CNY -5.4% -5.6% -11.2%
Indonesia - IDR -6.1% -4.4% -15.7%
Mongolia - MNT -7.7% -24.2% -37.4%
Bhutan - BTN -8.2% -4.6% -11.0%
India - INR -8.2% -4.8% -11.2%
Nepal - NPR -8.7% -5.3% -11.8%
Myanmar - MMK -12.1% -15.5% -36.2%
Sri Lanka - LKR -16.1% -21.2% -28.5%
Pakistan - PKR -20.7% -24.8% -24.4%
Source: Oanda; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
Due to its fixed value with USD, the Vietnamese Dong has barely
moved during the first quarter of 2019
Vietnamese Dong Exchange Rate YTD change in currency values

Per USD, mid point Against USD, as of 31 Mar 2019
Sri Lanka - LKR 4.3%

23240 China - CNY 2.5%
Thailand - THB 2.1%
23230 Myanmar - MMK 2.0% Exchange rate
Indonesia - IDR 1.5% A stable exchange rate is preferred in the world
23220 Malaysia - MYR 1.3% where most countries adopt floating rate policy.
Nepal - NPR 1.0% Volatile exchange rate can certainly harm
23210 Singapore - SGD 0.6% international trade and investment.
Brunei - BND 0.6%
YTD change in Vietnam’s exchange rate
23200 Mongolia - MNT 0.4% Due to its fixed value with USD, the Vietnamese
Cambodia - KHR 0.3% Dong has barely moved during the first quarter of
23190 Bhutan - BTN 0.1% 2019.
India - INR 0.1%
23180 Vietnam - VND 0.0%
Hong Kong - HKD -0.2%
23170 Philippines - PHP -0.3%
Laos - LAK -0.5%
23160 Bangladesh - BDT -0.7%
Japan - JPY -0.8%
23150 Pakistan - PKR -0.8%
Taiwan - TWD -0.9%
23140 South Korea - KRW -2.1%
31/12/18
Source: Oanda; Charting Economy analysis www.ChartingEconomy.com This is a licensed product and is not to be photocopied
APPENDIX 1:
KEY PROJECTIONS
From IMF’s World Economic Outlook Report
October 2018
KEY PROJECTIONS:
VIETNAM’S ECONOMY
Estimates
Indicators Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 Start After
Current account balance % of GDP -0.1 2.9 2.5 2.2 2.0 1.7 1.6 1.5 1.5 2017
Current account balance Billion USD -0.1 5.9 5.4 5.2 5.2 5.0 5.0 5.2 5.6 2017
General government gross debt % of GDP 57.40 59.94 58.49 57.81 57.38 57.13 57.29 57.65 58.12 2015
General government structural balance % of potential GDP
Gross domestic product per capita, constant prices Thousand VND 31,357 32,953 34,840 36,774 38,787 40,917 43,171 45,560 48,094 2016
Gross domestic product per capita, constant prices, PPP 2011 USD 5,667 5,956 6,297 6,646 7,010 7,395 7,803 8,234 8,692 2016
Gross domestic product per capita, current prices Thousand VND 45,717 48,578 53,458 58,223 64,290 70,984 78,071 85,691 93,868 2016
Gross domestic product per capita, current prices, PPP Current USD 6,053 6,430 6,928 7,482 8,060 8,665 9,312 10,010 10,771 2016
Gross domestic product per capita, current prices U.S. dollars 2,086 2,172 2,353 2,553 2,788 3,031 3,276 3,532 3,797 2016
Gross domestic product, constant prices % Change 6.7 6.2 6.8 6.6 6.5 6.5 6.5 6.5 6.5 2017
Gross domestic product, current prices Billion USD 191.3 201.3 220.4 241.4 266.2 292.2 318.8 346.9 376.2 2017
Gross national savings % of GDP 27.5 29.5 29.0 29.6 30.3 31.1 32.2 33.3 34.6 2017
Inflation, average consumer prices % change 0.6 2.7 3.5 3.8 4.0 4.0 4.0 4.0 4.0 2017
Population Million persons 91.7 92.7 93.6 94.6 95.5 96.4 97.3 98.2 99.1 2016
Unemployment rate % of total labor force 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2016
Source: IMF World Economic Outlook October 2018 www.ChartingEconomy.com 46

APPENDIX 2:
DOING BUSINESS 2019
Detailed rankings and scores for Vietnam
and comparable economies
Starting a business in Vietnam is easy for an emerging economy
with relatively low cost and takes less than 3 weeks to complete
Starting a business rank

Cost - Paid-in min.
Procedure -
Time - Men
Cost - Men Procedure - Time -
Women (% capital (% of Starting a Business
Economy Rank DTF* Men (% of income Women Women This topic measures the paid-in minimum capital
(days) of income income per
(number) per capita) (number) (days) requirement, number of procedures, time and
per capita) capita)
cost for a small- to medium-sized limited liability
New Zealand 1 100.0 1 0.5 0.2 1 0.5 0.2 0.0
company to start up and formally operate. To
Singapore 3 98.2 2 1.5 0.4 2 1.5 0.4 0.0 make the data comparable across 190
Hong Kong SAR, China 5 98.2 2 1.5 1.1 2 1.5 1.1 0.0 economies, Doing Business uses a standardized
Australia 7 96.5 3 2.5 0.7 3 2.5 0.7 0.0 business that is 100% domestically owned, has
Korea, Rep. 11 95.8 2 4.0 14.6 2 4.0 14.6 0.0 start-up capital equivalent to 10 times income per
Brunei Darussalam 16 94.9 3 5.0 1.2 4 6.0 1.2 0.0 capita, engages in general industrial or
Taiwan, China 20 94.4 3 10.0 1.9 3 10.0 1.9 0.0 commercial activities and employs between 10
and 50 people one month after the
China 28 93.5 4 8.6 0.4 4 8.6 0.4 0.0
commencement of operations, all of whom are
Thailand 39 92.7 5 4.5 3.1 5 4.5 3.1 0.0
domestic nationals. The most recent round of
Timor-Leste 68 89.4 6 13.0 0.6 6 13.0 0.6 0.2 data collection for the project was completed in
Japan 93 86.1 8 11.2 7.5 8 11.2 7.5 0.0 June 2018.
Vietnam 104 84.8 8 17.0 5.9 8 17.0 5.9 0.0
Malaysia 122 82.8 9 13.0 11.6 10 14.0 11.6 0.0 Starting a Business in Vietnam
Indonesia 134 81.2 10 19.6 6.1 10 19.6 6.1 0.0 Starting a business in Vietnam is easy for an
India 137 81.0 10 16.5 14.4 10 16.5 14.4 0.0 emerging economy with relatively low cost and
Myanmar 152 77.3 12 14.0 24.8 12 14.0 24.8 0.0 takes less than 3 weeks to complete.
Philippines 166 72.0 13 31.0 20.3 13 31.0 20.3 2.8
Lao PDR 180 60.9 10 174.0 6.6 10 174.0 6.6 0.0
Cambodia 185 52.8 9 99.0 47.4 9 99.0 47.4 76.2
Venezuela, RB 190 25.0 20 230.0 391.3 20 230.0 391.3 0.0
Getting construction permits is de facto Vietnam’s strength
Dealing with Construction Permits rank
Economy Rank DTF*

Procedures Time Cost (% of Building quality Dealing with Construction Permits
(number) (days) warehouse value) control index (0-15) This topic tracks the procedures, time and cost to
Hong Kong SAR, China 1 88.2 11 72 0.62 14.0 build a warehouse—including obtaining
Taiwan, China 2 87.1 10 82 0.42 13.0 necessary the licenses and permits, submitting
Malaysia 3 87.0 11 54 1.35 13.0 all required notifications, requesting and
receiving all necessary inspections and obtaining
New Zealand 6 86.4 11 93 2.22 15.0
utility connections. In addition, this year Doing
Singapore 8 84.7 10 41 3.35 12.0
Business introduces a new measure, the building
Australia 9 84.6 11 121 0.72 14.0 quality control index, evaluating the quality of
Korea, Rep. 10 84.4 10 28 4.37 12.0 building regulations, the strength of quality
Vietnam 21 79.1 10 166 0.69 12.0 control and safety mechanisms, liability and
Japan 44 75.0 12 175 0.52 11.0 insurance regimes, and professional certification
India 52 73.8 18 95 5.35 14.0 requirements. The most recent round of data
Brunei Darussalam 55 73.5 20 83 1.92 12.0 collection was completed in June 2018.
Thailand 67 71.9 19 118 0.68 11.0
Myanmar 81 70.4 15 95 3.74 9.0 Getting construction permits in
Philippines 94 68.6 23 122 2.54 13.0 Vietnam
Lao PDR 99 67.9 12 92 4.91 6.5 Getting construction permits is de facto
Indonesia 112 66.6 17 200 4.44 13.0 Vietnam’s strength.
China 121 65.2 20 155 2.95 11.1
Venezuela, RB 152 56.9 11 434 3.70 10.5
Timor-Leste 161 55.3 16 207 0.50 3.0
Cambodia 179 44.2 20 652 3.28 8.0
Getting electricity in Vietnam is expensive
Getting Electricity rank
Reliability of supply and

Procedures Time Cost (% of income per
Economy Rank DTF* transparency of tariff index
(number) (days) capita)
(0-8) Getting Electricity
United Arab Emirates 1 100.0 2 10 0.0 8.0 This topic tracks the procedures, time and cost
required for a business to obtain a permanent
Korea, Rep. 2 99.9 3 13 35.2 8.0
electricity connection for a newly constructed
Hong Kong SAR, China 3 99.3 3 24 1.3 8.0
warehouse. In addition to assessing efficiency of
Malaysia 4 99.3 3 24 26.0 8.0 connection process, new indicators were added
Thailand 6 98.6 3 30 40.4 8.0 to measure reliability of power supply and
Taiwan, China 8 96.3 3 22 38.6 7.0 transparency of tariffs and the price of electricity.
China 14 92.0 3 34 0.0 6.0 The most recent round of data collection for the
Singapore 16 91.3 4 30 23.3 7.0 project was completed in June 2018.
Japan 22 89.9 3 98 0.0 8.0
India 24 89.2 3 55 29.5 6.5 Getting Electricity in Vietnam
Vietnam 27 87.9 4 31 1087.3 7.0 Getting electricity in Vietnam is expensive.
Philippines 29 87.5 4 37 21.7 6.0
Brunei Darussalam 31 86.6 5 35 40.1 7.0
Indonesia 33 86.4 4 34 252.8 5.8
Australia 52 82.3 5 75 12.5 7.0
Timor-Leste 123 63.2 3 93 1170.2 0.0
Cambodia 141 57.0 4 179 1837.4 3.0
Myanmar 144 55.7 6 77 1147.0 1.0
Lao PDR 156 52.8 7 105 763.4 2.0
Registering property in Vietnam takes around 2 months with
relatively low cost
Registering Property rank
Quality of the land

Economy Rank DTF*
Procedures
Time (days)
Cost (% of
administration index (0-
Registering Property
(number) property value) This topic examines the steps, time and cost
30)
involved in registering property, assuming a
New Zealand 1 94.9 2 1 0.07 26.5 standardized case of an entrepreneur who wants
Taiwan, China 19 83.9 3 4 6.20 28.5 to purchase land and a building that is already
Singapore 21 83.1 6 5 2.87 28.5 registered and free of title dispute. In addition,
China 27 80.8 4 9 4.62 23.7 this year Doing Business adds a new measure to
Malaysia 29 80.4 6 12 3.52 27.5 the set of registering property indicators, an
index of the quality of the land administration
Korea, Rep. 40 76.3 7 6 5.12 27.5
system in each economy. The quality of land
Japan 48 74.2 6 13 5.78 24.8
administration index has four dimensions:
Australia 50 74.1 5 5 5.30 20.0 reliability of infrastructure, transparency of
Hong Kong SAR, China 53 73.6 5 28 7.72 27.5 information, geographic coverage and land
Vietnam 60 71.1 5 54 0.58 14.0 dispute resolution. The most recent round of data
Thailand 66 69.5 5 9 7.24 19.0 collection for the project was completed in June
Lao PDR 85 64.9 6 28 3.10 10.5 2018.
Indonesia 100 61.7 5 28 8.34 14.5
Philippines 116 57.6 9 35 4.28 12.5 Registering Property in Vietnam
Cambodia 124 55.2 7 55 4.28 7.5 Registering property in Vietnam takes around 2
Myanmar 136 52.3 6 85 4.09 5.5 months with relatively low cost.
India 166 43.6 9 69 8.33 8.7
Afghanistan 186 27.5 9 250 5.00 3.0
Timor-Leste 187 0.0 No Practice No Practice No Practice No Practice
Vietnam is better than most emerging markets when it comes to
getting credit for entrepreneurs
Getting Credit rank
Credit information Legal rights Sum getting

Economy Rank DTF*
index index credit
Getting Credit
New Zealand 1 100.0 8 12 20 This topic explores two sets of issues—the
Brunei Darussalam 1 100.0 8 12 20 strength of credit reporting systems and the
Australia 8 90.0 7 11 18 effectiveness of collateral and bankruptcy laws in
India 22 80.0 7 9 16 facilitating lending. The most recent round of
Cambodia 22 80.0 6 10 16
data collection for the project was completed in
June 2018.
Hong Kong SAR, China 32 75.0 7 8 15
Singapore 32 75.0 7 8 15
Malaysia 32 75.0 8 7 15
Getting Credit in Vietnam
Vietnam is better than most emerging markets
Vietnam 32 75.0 7 8 15
when it comes to getting credit for entrepreneurs.
Thailand 44 70.0 7 7 14
Indonesia 44 70.0 8 6 14
Korea, Rep. 60 65.0 8 5 13
China 73 60.0 8 4 12
Lao PDR 73 60.0 6 6 12
Japan 85 55.0 6 5 11
Taiwan, China 99 50.0 8 2 10
Timor-Leste 172 20.0 4 0 4
Myanmar 178 10.0 0 2 2
Philippines 184 5.0 0 1 1
Yemen, Rep. 186 0.0 0 0 0
Minority investors in Vietnam are less protected than their
counterparts in most markets in the region
Protecting Minority Investors rank
Disclosure Director Shareholder Shareholder Ow nership Corporate

Economy Rank DTF* index liability index suits index rights index and control transparency
(0-10) (0-10) (0-10) (0-10) index (0-10) index (0-10)
Protecting Minority Investors
This topic measures the strength of minority
Kazakhstan 1 85.0 9 6 9 10 8 9 shareholder protections against misuse of
corporate assets by directors for their personal
New Zealand 2 81.7 10 9 9 7 7 7
gain as well as shareholder rights, governance
Malaysia 2 81.7 10 9 8 8 6 8
safeguards and corporate transparency
Singapore 7 80.0 10 9 9 7 5 8 requirements that reduce the risk of abuse. The
India 7 80.0 8 7 7 10 8 8 most recent round of data collection for the
Hong Kong SAR, China 11 78.3 10 8 9 7 5 8 project was completed in June 2018.
Taiwan, China 15 75.0 9 5 7 7 7 10
Thailand 15 75.0 10 7 8 6 7 7 Minority Investors in Vietnam
Korea, Rep. 23 73.3 8 6 8 7 6 9 Minority investors in Vietnam are less protected
Brunei Darussalam 48 65.0 4 8 8 7 4 8 than their counterparts in most markets in the
Indonesia 51 63.3 10 5 2 7 7 7 region.
Australia 64 60.0 8 2 8 5 4 9
China 64 60.0 10 1 5 7 4 9
Japan 64 60.0 7 6 8 6 3 6
Vietnam 89 55.0 7 4 2 7 6 7
Cambodia 110 50.0 6 10 4 1 3 6
Philippines 132 43.3 2 3 7 1 6 7
Lao PDR 174 31.7 6 1 3 4 4 1
Myanmar 185 25.0 3 0 3 5 1 3
Somalia 190 0.0 0 0 0 0 0 0
Paying taxes in Vietnam is a big headache for entrepreneurs
Paying Taxes rank
Payments (number Time (hours Total tax rate Postfiling index

Economy Rank DTF*
per year) per year) (% of profit) (0-100)
Paying Taxes
This topic addresses the taxes and mandatory
Hong Kong SAR, China 1 99.7 3 35 22.9 98.9
contributions that a medium-size company must
Singapore 8 91.6 5 64 20.6 72.0
pay or withhold in a given year, as well as
New Zealand 10 91.1 7 140 34.6 96.9 measures the administrative burden in paying
Korea, Rep. 24 86.9 12 188 33.1 93.9 taxes. The most recent round of data collection
Australia 26 85.6 11 105 47.4 95.3 for the project was completed on June 1, 2018
Taiwan, China 29 85.1 11 221 34.6 92.2 covering for the Paying Taxes indicator calendar
Thailand 59 77.7 21 229 29.5 73.4 year 2017 (January 1, 2017 – December 31,
Malaysia 72 76.1 8 188 39.2 52.6 2017).
Philippines 94 71.8 14 181 42.9 50.0 Paying Taxes in Vietnam
Japan 97 71.1 30 130 46.7 71.7 Paying taxes in Vietnam is a big headache for
Indonesia 112 68.0 43 208 30.1 68.8
entrepreneurs.
China 114 67.5 7 142 64.9 50.0
India 121 65.4 12 275 52.1 49.3
Myanmar 126 63.9 31 282 31.2 45.5
Vietnam 131 62.9 10 498 37.8 49.1
Cambodia 137 61.3 40 173 21.7 26.0
Lao PDR 155 54.2 35 362 24.1 18.6
Brazil 184 34.4 10 1958 65.1 7.8
Venezuela, RB 189 15.4 70 792 64.6 19.7
Trading across borders in the Vietnam is not easy
Trading Across Borders rank

T im e t o C o st to T im e t o T im e t o C o st to T im e t o C o st to
C o s t t o e xpo rt :
e xpo rt : e xpo rt : e xpo rt : im po rt : im po rt : im po rt : im po rt :
D o c um e nt a ry
Econom y Rank DTF* B o rde r B o rde r D o c um e nt a ry B o rde r B o rde r D o c um e nt a ry D o c um e nt a ry
c o m plia nc e c o m plia nc e c o m plia nc e
c o m plia nc e
( US D )
c o m plia nc e c o m plia nc e c o m plia nc e c o m plia nc e Trading Across Borders
( ho urs ) ( US D ) ( ho urs ) ( ho urs ) ( US D ) ( ho urs ) ( US D ) Doing Business records the time and cost
Austria 1 100.0 0 0 0.5 0.0 0.0 0.0 0.5 0.0 associated with the logistical process of
exporting and importing goods. Under the new
Hong Kong SAR, China 27 95.0 1 0 0.7 12.0 18.5 265.6 1.3 56.8
methodology introduced this year, Doing
Korea, Rep. 33 92.5 13 185 1.0 11.1 6.0 314.6 1.0 26.8
Business measures the time and cost (excluding
Singapore 45 89.6 10 335 2.0 37.0 33.0 220.0 3.0 40.0 tariffs) associated with three sets of
Malaysia 48 88.5 28 213 10.0 35.0 36.0 212.5 6.5 60.0 procedures—documentary compliance, border
Japan 56 86.5 23 265 2.4 54.0 39.6 299.2 3.4 107.0 compliance and domestic transport—within the
Taiw an, China 58 84.9 17 335 5.0 84.0 47.4 340.4 4.0 65.0 overall process of exporting or importing a
Thailand 59 84.7 44 223 11.3 96.9 50.2 232.5 4.0 43.5 shipment of goods. The most recent round of
New Zealand 60 84.6 37 337 3.0 67.0 25.0 366.5 1.0 80.0 data collection for the project was completed in
June 2018.
China 65 82.6 26 314 8.6 73.6 48.0 326.0 24.0 122.3
Lao PDR 76 78.1 9 140 60.0 235.0 10.5 223.5 60.0 115.0
India 80 77.5 66 252 14.5 77.7 96.7 331.0 29.7 100.0
Trading Across Borders in Vietnam
Trading across borders in the Vietnam is not
Vietnam 100 70.8 55 290 50.0 139.2 56.0 373.0 76.0 182.5
easy.
Australia 103 70.3 36 766 7.0 264.0 39.0 539.0 4.0 100.0
Philippines 104 69.9 42 456 36.0 52.5 120.0 579.5 96.0 50.0
Cambodia 115 67.3 48 375 132.0 100.0 7.5 240.0 132.0 120.0
Indonesia 116 67.3 53 254 61.3 138.8 99.4 382.6 106.2 164.4
Brunei Darussalam 149 58.7 117 340 155.0 90.0 48.0 395.0 132.0 50.0
Myanmar 168 47.7 142 432 144.0 140.0 230.0 456.7 48.0 210.0
Congo, Dem. Rep. 188 3.5 296 2223 192.0 500.0 336.0 3039.0 174.0 765.0
Enforcing contracts in Vietnam takes around a year and the cost is
relatively low
Enforcing Contracts rank
Time Cost Quality of judicial

Economy Rank DTF*
(days) (% of claim) processes index (0-18)
Enforcing Contracts
Singapore 1 84.5 164 26 15.5 The enforcing contracts indicator measures the
Korea, Rep. 2 84.2 290 13 14.5 time and cost for resolving a commercial dispute
Australia 5 79.0 402 23 15.5 through a local first-instance court. In addition,
China 6 79.0 496 16 15.5 this year it introduces a new measure, the quality
United Arab Emirates 9 75.9 445 21 14.0 of judicial processes index, evaluating whether
each economy has adopted a series of good
Taiwan, China 11 75.1 510 18 14.0
practices that promote quality and efficiency in
New Zealand 21 71.5 216 27 9.5
the commercial court system. The most recent
Hong Kong SAR, China 30 69.1 385 24 10.0 round of data collection was completed in June
Malaysia 33 68.2 425 38 13.0 2018.
Thailand 35 67.9 420 17 8.5
Japan 52 65.3 360 23 7.5 Enforcing Contracts in Vietnam
Vietnam 62 62.1 400 29 7.5 Enforcing contracts in Vietnam takes around a
Brunei Darussalam 67 61.0 540 37 10.5 year and the cost is relatively low.
Indonesia 146 47.2 403 70 7.9
Philippines 151 46.0 962 31 7.5
Lao PDR 162 42.0 828 32 3.5
India 163 41.2 1445 31 10.5
Cambodia 182 31.8 483 103 4.5
Myanmar 188 24.5 1160 52 3.0
Resolving insolvency in Vietnam takes as long as 5 years and only
a fraction is recovered
Resolving Insolvency rank
Recovery rate Strength of insolvency

Economy Rank DTF*
(cents on the dollar) framework index (0-16)
Japan 1 93.5 92 14.0

Resolving Insolvency
This topic identifies weaknesses in existing
United States 3 90.9 82 15.0
insolvency law and the main procedural and
Korea, Rep. 11 83.0 85 12.0 administrative bottlenecks in the insolvency
Australia 20 78.9 83 11.0 process. The most recent round of data
Taiwan, China 23 77.1 82 10.5 collection for the project was completed in June
Thailand 24 76.6 70 12.5 2018.
Singapore 27 74.3 89 8.5
New Zealand 31 71.8 84 8.5 Resolving Insolvency in Vietnam
Indonesia 36 67.9 65 10.5 Resolving insolvency in Vietnam takes as long as
Malaysia 41 67.2 81 7.5 5 years and only a fraction is recovered.
Hong Kong SAR, China 44 65.7 87 6.0
China 61 55.8 37 11.5
Philippines 63 55.2 21 14.0
Brunei Darussalam 64 55.1 47 9.5
Cambodia 79 48.4 14 13.0
India 108 40.8 27 8.5
Vietnam 133 34.9 21 7.5
Myanmar 164 20.4 15 4.0
Lao PDR 168 0.0 0 0.0
Saudi Arabia 168 0.0 0 0.0
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Charting Vietnam 2Q 2019

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Charting Vietnam 2Q 2019

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Charting Vietnam

Quickly understand the economy,

Publication Date: April 2019

Current Our ways to

 Contradictory expert  Produce your own insights

Meaning  Partial explanations  Exhaustive and fact-based

 Information over load  Only those that matter are

Geography Population and society Government

ECONOMIC PROFILE ECONOMIC OUTLOOK

Structure Competitiveness Development Growth Stability

World’s Top 16 Economies

Measuring the size of an economy

Note: (*) IMF Estimate © Charting Economy™ 8

Population Population Growth

Malaysia 31.8 1.350% Vietnam’s population

Brunei 0.5 1.252%

Demographic Structure Working age

Trade Openness Export Import

Key partners Key partners Trade openness

Laos 75.8 Germany 3.1% Singapore 2.4%

UK 2.5% Germany 1.8%

Key Production Sectors

Key production sectors in Vietnam

Economic Freedom Index

ECONOMIC PROFILE ECONOMIC OUTLOOK

Structure Competitiveness Development Growth Stability

Global Competitiveness Ranking: Global Competitiveness Index

77 China (28) 72.6 Vietnam in the Global Competitiveness

The Global Competitiveness Index

Vietnam Brunei Cambodia Indonesia Laos Malaysia Philippines Singapore Thailand

Enabling Environment Human Capital Markets Innovation Ecosystem

Minimum Monthly Wage

Ease of Doing Business Ranking

Cambodia (138) 54.8 Enforcing Contracts 62.07 60.22

Laos (154) 51.3 Resolving Insolvency 34.93 35.16

Myanmar (171) 44.7

ECONOMIC PROFILE ECONOMIC OUTLOOK

Structure Competitiveness Development Growth Stability

Growth in GNI per capita GNI per capita comparison

1,000 Bangladesh 4,040

Vietnam’s Poverty Headcount Poverty Headcount in Asia Pacific

25% Timor-Leste (2014) 41.8%

Unemployment rate in Vietnam Projected Unemployment rate*

Cambodia (2012) 0.308

Human Development Index (HDI) HDI scores and rank

Very High Human Development High Human Development

10 Vietnam Quality of life in Vietnam

ECONOMIC PROFILE ECONOMIC OUTLOOK

Structure Competitiveness Development Growth Stability

Real growth by production sectors Contribution to GDP growth

Manufacturing 13.0% GDP 7.1% Real GDP growth by production sectors

Contribution to GDP growth

Real GDP growth

GDP growth projections

2018 2019 2020

ECONOMIC PROFILE ECONOMIC OUTLOOK

Structure Competitiveness Development Growth Stability

Inflation in Vietnam Projected Inflation*

25% Myanmar 5.8%

Vietnam’s Policy Rate

Policy Interest rate

Vietnam’s Banking sector Bank Capital ratio

Vietnam’s General government Projected General government Projected General

0.9 New Zealand 30.4 Public debt