Economy of Vietnam
- See also: Foreign aid to Vietnam
In 2004 external debt amounted to US$16.6 billion, or 37 percent of gross domestic product (GDP).[2]
From 1988 to December 2004, cumulative foreign direct investment (FDI) commitments totaled US$46 billion. By December 2004, about 58 percent had been dispersed. About half of FDI has been directed at the two major cities (and environs) of Ho Chi Minh City and Hanoi. In 2003 new foreign direct investment commitments were US$1.5 billion. The largest sector by far for licensed FDI is industry and construction. Other sectors attracting FDI are oil and gas, fisheries, construction, agriculture and forestry, transportation/communications, and hotels and tourism. During the period 2006–10, Vietnam hopes to receive US$18 billion of FDI to support a targeted growth rate in excess of 7 percent. Despite rising investments, foreign investors still regard Vietnam as a risky destination, as confirmed by a recent survey by the Japan External Trade Organization of Japanese companies operating in Vietnam. Many of these companies complained about high costs for utilities, office rentals, and skilled labor. Official corruption and bureaucracy, the lack of transparent regulations, and the failure to enforce investor rights are additional issues impairing investment, according to the U.S. State Department. Vietnam tied with several nations for 102nd place in Transparency International’s 2004 Corruption Perceptions Index.[2]
The World Bank’s assistance program for Vietnam has three objectives: to support Vietnam’s transition to a market economy, to enhance equitable and sustainable development, and to promote good governance. From 1993 through 2004, Vietnam received pledges of US$29 billion of official development assistance (ODA), of which about US$14 billion, or 49 percent, actually has been disbursed. In 2004 international donors pledged ODA of US$2.25 billion, of which US$1.65 billion actually was disbursed. Three donors accounted for 80 percent of disbursements in 2004: Japan, the World Bank, and the Asian Development Bank. During the period 2006–10, Vietnam hopes to receive US$14 billion–US$15 billion of ODA.[2]
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International rankings
| Organization | Title | Ranking |
|---|---|---|
| Economist Intelligence Unit | IT Industry Competitiveness Index (2007) | 61 out of 64 |
| International Monetary Fund | Gross Domestic Product (PPP) | 37 out of 227 |
| World Economic Forum | Global Competiveness | 77 out of 131 |
| World Bank | Ease of Doing Business | 91 out of 177 |
| Heritage Foundation/The Wall Street Journal | Index of Economic Freedom | 135 out of 157 [3] |
| Transparency International | Corruption Perceptions Index | 123 out of 180 |
[
References
- ^ a b c d Vietnam country study. Library of Congress Federal Research Division (December 1987). This article incorporates text from this source, which is in the public domain.
- ^ a b c d e f g h i j k l m n o p q r s t u v w x y z aa ab ac ad Vietnam country profile. Library of Congress Federal Research Division (December 2005). This article incorporates text from this source, which is in the public domain.
- ^ Index of Economic Freedom
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