Market Report – Vietnam – Economics – BMI (2024)

FAQs

Market Report – Vietnam – Economics – BMI? ›

Vietnam's middle class population – currently at 10% – is believed to be the fastest growing in Southeast Asia. The middle class earning USD 714 a month or more in Vietnam will double to 33 million people, about a third of the population, between 2014 and 2020, according to Boston Consulting Group.

The economy of Vietnam is a mixed socialist-oriented market economy, which is the 36th-largest in the world as measured by nominal gross domestic product (GDP) and 26th-largest in the world as measured by purchasing power parity (PPP) in 2022.

Specifically, sales in 2019 reached VND29,516 billion (US$ 1,271 billion) while it was VND26,574 billion (US$ 1.144 billion) in 2020.

Median salary

The median Vietnamese salary is 14,800,000 VND/month. Median salary means half the population earns more than 14.8 million VND/month, while the other half earns less than 14.8 million VND/month.

Growth is expected to pick up to 6.5 percent in 2024 as the economies of Vietnam's main export markets gain strength, the report says. The outlook for Vietnam reflects heightened uncertainty in the global economy.

The slowdown or possibly recession of the global economy; risks and uncertainties in the financial system that may culminate in a crisis; and foot-dragging disbursem*nt of public investment are three major challenges to Vietnam's economy in 2023.

Main Sectors of Industry

Vietnam's economy is based on large state-owned industries such as textiles, food, furniture, plastics and paper as well as tourism and telecommunications. Agriculture represented 12.6% of GDP and employs 37% of the total workforce in 2022 (World Bank, 2023).

Average wages in Vietnam

A joint report released in 2016 by the Vietnamese government and the World Bank suggested that Vietnam could achieve upper-middle income status by 2035 with per capita income of more than USD 7,000, which is in the range of what Malaysia or South Korea experienced in the mid-2000's.

The salary range in Vietnam is 3,070,000 VND/month (minimum salary) to the highest average of 76,900,000 VND/month (actual monthly salary may be higher). These figures are inclusive of bonuses. The lowest salaries are in the accounting, customer service, and administrative sectors.

To make it into the group of the top 1 per cent in terms of wealth in Vietnam, according to Knight Frank, Vietnamese people need to own $160,000. This figure is $2.9 million in Singapore; $540,000 in Malaysia; and $60,000 in Indonesia and the Philippines.

Why is Vietnam inflation so low? ›

HANOI: One of the factors behind Vietnam's low inflation in 2022 was overcapacity which constrained firms from rising product prices, according to Nguyen Duc Do, deputy director of the Institute of Economics and Finance at the Academy of Finance.

IMF projects 5.8 percent GDP growth for Vietnam this year. The IMF is forecasting GDP growth of 5.8 percent for Vietnam this year, according to its World Economic Outlook, April 2023: A Rocky Recovery report.

The Vietnamese economy itself still faces many challenges, including financial and monetary problems, macro variables such as inflation, bank liquidity, cash flow, exchange rates, interest rates and the real estate market. The Government is working to address these issues.

Vietnam is one of the fastest–growing economies in the world. The country's economic boom is attributed to the shift in labour allocation from agriculture to the manufacturing and services sector. Vietnam also received a boost from private investment, strong tourism, higher wages, and increased urbanisation.

Poverty Data: Viet Nam

In Viet Nam, 4.4% of the population lived below the national poverty line in 2021. In Viet Nam, the proportion of employed population below $1.90 purchasing power parity a day in 2022 was 1.2%.

In 1990, Vietnam was among the world's poorest countries with a GDP per capita of $98. By 2010, GDP reached $1,000. Vietnam is now defined as a lower middle income country by the World Bank.

Distribution of gross domestic product (GDP) across economic sectors Vietnam 2021. In 2021, Vietnam's service sector contributed the largest percentage to the country's gross domestic product (GDP), at 41.21 percent. The service sector consists of the production of intangible goods to businesses and final consumers.

In its latter stages, the conflict held the attention of the world. Alongside its economic growth, Vietnam is also beset by high levels of corruption, political censorship and a poor record on human rights.

Vietnam continues to be a magnet for attracting foreign direct investment (FDI), and for leading economic growth — exceeding 2% GDP growth in 2021, and being on pace for a 6.5% GDP growth target in 2022. Vietnam has a relatively stable government that provides strategic direction and decides on all major policy issues.

In contrast to the Chinese model (dubbed the socialist market economy), the Vietnamese system is more explicitly characterized as an economy in transition to socialism and not as a form of socialism, with the process of building socialism seen as a long-term process.

What does Charlie mean in Vietnam? ›

Collectively the United States often called them the Viet Cong. It was commonly shortened to VC, which in military alphabet code was spoken as Victor Charlie. It was further shortened to just Charlie. American soldiers called them Charlie, they called themselves liberators.

Information and communications technology (ICT) is a booming sector in Vietnam.

The golden star represents the five main classes in Vietnamese society — intellectuals, farmers, workers, entrepreneurs, soldiers.

Living Wage Individual in Vietnam averaged 4957650.00 VND/Month from 2015 until 2018, reaching an all time high of 5258200.00 VND/Month in 2015 and a record low of 4693900.00 VND/Month in 2017.

The yellow star centred on the red field symbolizes one of five classes of society —entrepreneurs, farmers, workers, intellectuals and soldiers representing each point of the star.

Many expats live comfortably in Vietnam on less than $1200 per month. Regardless if your tastes are modest or luxury, your living costs are less than what you would spend in a MCOL city in the US.

1/ Know your take-home pay

Therefore, you should be aware of how much of your income will go into your pocket, and budget accordingly. The good news is that, as an expat, you can expect to command a high salary in Vietnam. Salaries for expats ranged from US$8,500 to US$34,000 per month in 2022, VnExpress reported.

In Vietnam, a 50m2 downtown house costs at least around $500,000, sometimes even higher. However, the average income of Vietnamese is just over $3,000 a year. Thus, it will take us more than 160 years-worth of income to purchase a house.

Yes, expats pay tax in Vietnam. Individuals working in Vietnam (including foreigners) have to pay personal income tax (PIT) based on their tax residency.

Should you tip in Vietnam? ›

Tipping isn't mandatory or customary in Vietnam, but it is always appreciated. If you're happy with the services provided by waiters, drivers and other service workers, leaving a small tip is a good way to show your appreciation.

India's GDP grew 6.1 percent (compared to 4 percent in the same quarter of 2021–22), making it the fastest-growing among the world's top economies. Last year, the IMF's chief called India a bright spot in the global economy.

Vietnam's quality of life index in 2021 is 78.49 points, holding the position of 62/165 countries on the ranking of the world's best quality of life index of CEOWORD. Compared to 2021, Vietnam ranks 101/171 countries in the world, so Vietnam's rank has increased by 39 places after 1 year.

Vietnam and Cambodia are among the fastest-growing economies in Southeast Asia, with both countries projected to experience GDP growth of 5.8 per cent in 2023. Vietnam's public debt is expected to remain the lowest among eight ASEAN members.

Economic reforms since the launch of Đổi Mới in 1986, coupled with beneficial global trends, have helped propel Vietnam from being one of the world's poorest nations to a middle-income economy in one generation. Between 2002 and 2021, GDP per capita increased 3.6 times, reaching almost US$3,700.

Vietnam's digital economy is predicted to continue growing with a CAGR (compound annual growth rate) of 31 percent with value reaching $49 billion by 2025, according to a report about e-commerce.

The country will strive for annual GDP growth of 6.5-7.5% between 2031 and 2050, along with per capita GDP of 27,000-32,000 USD and an urbanisation rate of 70-75% by 2050.

With strong economic expansion projected over the next decade, Vietnam's total GDP is forecast to increase from USD 327 billion in 2022 to USD 470 billion by 2025, rising to USD 760 billion by 2030.

Both the FTSE and MSCI have publicly said that Vietnam's prefunding requirement and strict limits on foreign ownership of shares are among the main hurdles to an emerging market status upgrade.

Vietnam has benefited as major companies have moved their manufacturing there to take advantage of the low costs, developed infrastructure, supportive business environment, and success in mitigating the economic effects of COVID-19.

Is Vietnam a non market economy? ›

As a member considered a non-market economy of the WTO (World Trade Organization), Vietnam has met many difficulties in exporting goods to the US market by this legal barrier, especially under US anti-dumping law.

From fresh fruit and vegetables to clothes and furniture, Vietnamese markets have it all. Every town and city has a large, central market, as well as several smaller, more specialised markets. With such a wide variety of goods and markets on offer in Vietnam, finding the best market for what you want can be tricky.

With a low banked population, those aged 15 and above holding a bank account, of 34%, Vietnam has traditionally been a cash-based economy.

In contrast to the Chinese model (dubbed the socialist market economy), the Vietnamese system is more explicitly characterized as an economy in transition to socialism and not as a form of socialism, with the process of building socialism seen as a long-term process.

Vietnam At-A-Glance

Vietnam's shift from a centrally planned to a market economy has transformed the country from one of the poorest in the world into a lower middle-income country. Vietnam now is one of the most dynamic emerging countries in East Asia region.

In Asia, local markets are simply places where butchers and grocers sell fresh products straight from the farms. You'll also find live animals such as chickens or fish. These markets are also referred to as wet markets due to the fact that the floors are always wet when sellers wash their vegetables or clean fish.

SINCE REUNIFICATION IN 1975, the economy of Vietnam has been plagued by enormous difficulties in production, imbalances in supply and demand, inefficiencies in distribution and circulation, soaring inflation rates, and rising debt problems.

Changing money elsewhere is illegal and while higher rate may be on offer you may risk losing your money. Credit cards are widely accepted but, in rural areas particularly, you should carry cash as a back-up. It may be difficult to cash travellers' cheques. ATMs are widely available in major cities and tourist areas.

Vietnam is a socialist republic with a one-party system led by the Communist Party. The CPV espouses Marxism–Leninism and Hồ Chí Minh Thought, the ideologies of the late Hồ Chí Minh. The two ideologies serve as guidance for the activities of the party and state.

Is Vietnam still a socialist state? ›

The Socialist Republic of Vietnam is a one-party state. A new state constitution was approved in April 2013, replacing the 1980 version. The central role of the Communist Party was reasserted in all organs of government, politics and society.

The Communist Party of Vietnam, the leading non-State organ, operates in accordance with the laws. Government powers in Vietnam are divided into legislative, executive and judiciary powers. Vietnam's legal system is based upon socialist legality according to Article 12 of the constitution.