Vietnam » Introduction

 GDP Composition by Sector

Vietnam’s economy is one of the fastest growing economies in Asia. During the last decade Vietnamese government has adopted radical economic decisions which have helped in eradicating poverty and improving the economic condition of Vietnam. During the years 2003-2006, with an average GDP rate of 7%, Vietnam was the second fastest growing Asian economy. A decade ago Vietnam was counted among the underdeveloped country. In the period of 10 short years Vietnam has shown promising signs of improvement and it is predicted that Vietnam will emerge as an economically stable country by the end of year 2020.

Vietnamese government is striving towards the development of industrial sector in the country which has been seen in the various reforms formulated towards attracting foreign direct investment in the country. But Vietnam has always been an agrarian society and even today 55.6% of the GDP is generated through the agricultural product. After agriculture, the services sector is the strongest in Vietnam. Tourism is the second important source of revenue generation in the country. Vietnam is bestowed with natural beauty which has fascinated tourists for centuries; just a couple of years ago, an average of 2 million tourists visited the country every year. But for the year 2008, government set a target of attracting 5 million tourists in the country and at the moment 25.5 % of GDP is generated through the services sector. Industrial sector is also taking its root in the country and it is contributing to the GDP growth at the rate of 18%.

The major industries contributing to Vietnam’s economy are food processing, garments, shoes, machine building, mining, cement, chemical fertilizer and paper. Vietnam is also involved in export of its industry’s products and Vietnam’s major export partners are US, Japan, Australia, China, Germany and Singapore.