remains one of the fastest-growing Asian economies with high GDP growth in
recent years, based on the power of FDI & the private sector.
Vietnam has achieved
substantial progress in economic development following the declaration by the
Sixth Party Congress, in 1986, of a broad economic reform package called “Doi
Moi”, or “renovation” which led to a more open economy and dramatically
improved Vietnam’s business environment.
Up to now Vietnam has successfully transformed from a centrally-planned
economy with heavy bureaucracy and subsidies to a socialist-oriented market
economy characterized by strong dynamism and rapidly growing entrepreneurship.
Vietnam’s economy has integrated deeply into the regional and global economies,
bringing about a sharp rise in trade volumes as well as an influx of foreign
Vietnam’s economy is well on the way to being a multi-sector model
operating according to market mechanisms. Over the last decade the economy has
recorded an average GDP growth rate of 7.2 percent per annum, ranking top in
the Asia-Pacific region. The private and FDI sector enjoy very favourable
conditions created by the Enterprise Law and Investment Law of 2014, which
institutionalizes the freedom of all individuals to conduct business in areas
not prohibited by law and removes a large number of administrative obstacles
that hampered enterprises.
With a view to raising the efficiency of the state-owned sector, the
government has adopted assertive policy measures to reorganize the sector
through equalization. As a result, more than 4,190 state-owned enterprises were
equitized by the end of 2014.
Although Vietnam’s economy was affected from the
international economic crisis and the internal irrational macroeconomic
setbacks such as high inflation rate, trade deficit and budget overspending,
the economy recovered rapidly, with GDP growth rate of 5.98 percent in 2014.
Vietnam became a lower middle income country with its GDP per capita exceeding
USD 2,028 in
The Government has put forward some key solutions to the national
socio-economic development plan for 2016, including inflation curbing and
macroeconomic stabilization; economic restructuring and administrative reform;
improved workforce quality and social welfare etc. with the goal to attain the
GDP growth rate of about 6.2 percent, and the reduced trade deficit and CPI
(consumer price index) of under 5 percent.