Vietnam’s economy over the past 10 years has made impressive development, with per capita income increasing 2.3 times, from $ 1,160 in 2010 to about $ 4.324 in 2023. In 2020, Vietnam was heavily affected by the Covid-19 pandemic, but during the post-Covid period from 2021 to 2024, it had to face many global challenges, such as inflation and economic recession. However, Vietnam still achieved a positive recovery rate, affirming its position as one of the fastest-growing economies in the world.
Steady growth, high resilience
In the period 2011 – 2015, the average growth rate of Vietnam’s economy is 5.9% / year; the period 2016 – 2019 reached 6.8% / year. The macroeconomy has stabilized firmly with the consumer price index (CPI) falling from 18.6% in 2011 to less than 4% in the period 2016-2020.
Thanks to the great balances of the state budget (accumulation – consumption, savings – investment, energy, food …) the macroeconomic foundation has been ensured, firmly stabilized: Total investment capital for social development in the period 2011 – 2020 reaches nearly 15 million billion VND (equivalent to 682 billion USD), an average increase of 10.6% / year.
From 2010 to 2020, Vietnam’s economy continued to demonstrate a strong foundation and high resilience. The Covid-19 pandemic had a considerable impact on the global economy, but according to data released by the General Statistics Office, Vietnam’s GDP in 2020 grew by 2.91%, making it one of the few countries in the world not to forecast an economic recession. In 2021, the country continued to experience positive growth and quickly recovered to this day. It is projected that Vietnam’s GDP will reach 6.4% in 2024 and maintain a level of 6.6% in 2025.
As of September 30, 2024, the total registered FDI capital in Vietnam exceeded 24.78 billion USD, an increase of 11.6% compared to the same period last year. Meanwhile, the realized capital of FDI projects was estimated at around 17.3 billion USD, up 8.9%.
Economic restructuring towards industrialization
In 2010, the proportion of the agricultural sector in GDP is 18.9%, by 2020, this rate has decreased to 14.8%. The economic restructuring in the direction of reducing the proportion of agriculture, increasing the proportion of industry – services is one of the outstanding achievements of the Vietnamese economy in the past 10 years. From a backward agricultural economy with 90% of the population working in agriculture, Vietnam has built technical infrastructure, socio-economic infrastructure to meet the industrialization and modernization.
Many economists affirm the role of FDI investment as a catalyst, promoting economic restructuring towards industrialization. Over the past years, the Government of Vietnam always strives to improve the “clean” investment environment, focusing on attracting FDI enterprises with good technology, giving priority to projects with high added value, using high technology, using environmentally friendly technology.
Social security issue
Paying attention to social security issues, striving to develop people in economic, education and health, are factors contributing to strengthening the economic foundation of Vietnam in the past 10 years.
From 2010 to 2020, the Human Capital Index (HCI) of Vietnam increases from 0.66 to 0.69. Accordingly, every 98/100 children born in Vietnam will live to be 5 years old. This indicates that Vietnam’s Human Capital Index continues to be higher than the average of countries with similar income levels, despite lower levels of public spending on health, education and social protection.
Health outcomes have improved in tandem with rising living standards. Average life expectancy in Vietnam increased from 65.2 years in 1989 to 74.5 years in 2023.
The capacity level of the labor force in Vietnam in recent years has been significantly improved. The rate of trained workers increased from 40% in 2010 to about 68% in 2023, creating a more productive workforce on a larger scale.
With the stable economic foundation, the trend of industrialization and modernizatio, and many policies to attract FDI technology, along with the development of highly skilled human resources, Vietnam has built an attractive investment environment over the past 10 years.
Source: General Statistics Office
