VietnamChapters
Historical background
The conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the communist North and anti-communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies, the persecution and mass exodus of individuals - many of them successful South Vietnamese merchants - and growing international isolation. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The communist leaders maintain tight control on political expression but have demonstrated some modest steps toward better protection of human rights. The country continues to experience small-scale protests, the vast majority connected to either land-use issues, calls for increased political space, or the lack of equitable mechanisms for resolving disputes. The small-scale protests in the urban areas are often organized by human rights activists, but many occur in rural areas and involve various ethnic minorities such as the Montagnards of the Central Highlands, Hmong in the Northwest Highlands, and the Khmer Krom in the southern delta region.
Source: https://www.cia.gov/the-world-factbook/countries/vietnam/
Key indicators
- Area
- 331,210 km2
- Population
- 102,789,598 (July 2021 est.)
- Government type
- Communist state
- Languages
- Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon-Khmer and Malayo-Polynesian)
- GDP
- $271.158 billion (2020 est.)
- Growth rate
- 2.9% (2020 est.)
- HDI
- 117
- Capital
- Hanoi
Macroeconomic indicators
Vietnam is a densely populated developing country that has been transitioning since 1986 from the rigidities of a centrally planned, highly agrarian economy to a more industrial and market based economy, and it has raised incomes substantially. Vietnam exceeded its 2017 GDP growth target of 6.7% with growth of 6.8%, primarily due to unexpected increases in domestic demand, and strong manufacturing exports.
Vietnam has a young population, stable political system, commitment to sustainable growth, relatively low inflation, stable currency, strong FDI inflows, and strong manufacturing sector. In addition, the country is committed to continuing its global economic integration. Vietnam joined the WTO in January 2007 and concluded several free trade agreements in 2015-16, including the EU-Vietnam Free Trade Agreement (ratified in 2020), the Korean Free Trade Agreement, and the Eurasian Economic Union Free Trade Agreement. In 2017, Vietnam successfully chaired the Asia-Pacific Economic Cooperation (APEC) Conference with its key priorities including inclusive growth, innovation, strengthening small and medium enterprises, food security, and climate change. Seeking to diversify its opportunities, Vietnam also signed the Comprehensive and Progressive Agreement for the Transpacific Partnership in 2018 and continued to pursue the Regional Comprehensive Economic Partnership.
To continue its trajectory of strong economic growth, the government acknowledges the need to spark a 'second wave' of reforms, including reforming state-owned-enterprises, reducing red tape, increasing business sector transparency, reducing the level of non-performing loans in the banking sector, and increasing financial sector transparency. Vietnam’s public debt to GDP ratio is nearing the government mandated ceiling of 65%.
In 2016, Vietnam cancelled its civilian nuclear energy development program, citing public concerns about safety and the high cost of the program; it faces growing pressure on energy infrastructure. Overall, the country’s infrastructure fails to meet the needs of an expanding middle class. Vietnam has demonstrated a commitment to sustainable growth over the last several years, but despite the recent speed-up in economic growth the government remains cautious about the risk of external shocks.
Source: https://www.cia.gov/the-world-factbook/countries/vietnam/
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
2.552 |
8.124 |
5.046 |
5.815 |
6.500 |
|
Gross domestic product, current prices Percent change (Billions) |
370.076 |
407.965 |
433.702 |
465.814 |
505.531 |
|
Gross domestic product per capita, current prices Percent change (Units) |
3,756.885 |
4,101.730 |
4,324.049 |
4,622.544 |
4,977.119 |
|
Inflation, average consumer prices Percent change (Units) |
1.837 |
3.157 |
3.253 |
3.740 |
3.433 |
|
Volume of imports of goods and services Percent change (Units) |
17.480 |
2.794 |
-4.724 |
8.740 |
6.632 |
|
Volume of exports of goods and services Percent change (Units) |
13.634 |
6.401 |
-3.901 |
4.660 |
5.492 |
|
Unemployment rate Percent change (Units) |
3.200 |
2.320 |
2.010 |
2.063 |
2.030 |
|
Current account balance Percent change (Billions) |
-8.150 |
-0.090 |
22.184 |
10.610 |
10.075 |
|
Current account balance Percent change (Units) |
-2.202 |
-0.022 |
5.115 |
2.278 |
1.993 |
Estimates
Source: IMF Statistics - Vietnam
Relationships with Luxembourg
Existing conventions and agreements
Agreement between the Government of the Grand Duchy of Luxembourg and the government of the Socialist Republic of Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 04.03.1996 (Memorial 1998, A No.37, p.541)
- Effective as of 01.01.1996 (Memorial 1998, A No.37, p.541)
Further information
Contact points in Vietnam
Embassy of the Grand Duchy of Luxembourg in Thailand
Ambassador with residence in Bangkok: H.E. Mr Patrick HEMMER
Q House Lumpini 17th Floor
1 South Sathorn Road
Tungmahamek Sathorn
Bangkok 10120
Thailand
Tel.: (+66 2) 677 7360
Fax: (+66 2) 677 7364
E-Mail: bangkok.amb@mae.etat.lu
Website: bangkok.mae.lu
Honorary Consuls
Honorary Consul with Jurisdiction over the City of Hanoi:
Mr Hong Quang TRAN
Tel.: (+84) 24 3946 1204
E-Mail: hanoi@luxconsulatevn.org
Honorary Consul with jurisdiction of the City Ho Chi Minh:
Mr Olivier Dung DO NGOC
Tel.: (+84) 28 3827 2373
E-Mail: hcmc@luxconsulatevn.org
Source: Ministry of Foreign Affairs of Luxembourg
Other useful links
- European Chamber of Commerce in Vietnam
- Chambre de Commerce française au Vietnam
- Das ist der Vietnam
- Economic Freedom Index - Vietnam
- Info Viet-Trade Portal
- World Bank in Vietnam