What’s the situation in Vietnam’s economy?

According to the Vietnam Eseing Bureau of Statistics, Vietnam’s GDP in 2018 was 553.53 trillion dong ($238.5 billion), up 7.08 percent year-on-year, the highest since 2008. If this rate has been developing, 10 years later the probability can step into the ranks of the middle developed countries edge, but want to all meet the standards of developed countries, it will take time. Next, I’ll analyze it briefly. Vietnam is a socialist country with a multi-ethnic, one-party political system. This determines that Vietnam can concentrate on major decisions and reforms, and because of this, Vietnam’s real potential is also tapped in Vietnam’s “reform and opening-up”. In December 1986, the six major Viet Nam communists proposed an “innovative” open route, and in the following years, Vietnam opened the door to the economic take-off of Vietnam through a series of opening policies. Industry and service industries have been transformed from planned economic changes into market economies, state-owned, joint-stock and joint ventures have been allowed to coexist, and in 1996 the 8th Congress of the Communist Party of Vietnam proposed to continue to deepen reforms aimed at industrialization and modernization of the country by 2020.

These measures are too similar to China’s. In 2016, the Viet-Again put forward their “five-year plan”: gdp growth at an average rate of 6.5%-7%, gdp per capita of $3,200-$3,500 by 2020, 85% of GDP in industry and services in 2020, and an average annual growth of 5% in social labour productivity. It can be seen that although Vietnam’s starting point is low, but ideological awareness is not low, in some respects even as much as China, and now Vietnam’s economy is in a period of high-speed growth, the future potential is possible. Vietnam is a consumer-driven economy. Vietnam’s service sector contribution is only 42%, but Vietnam’s final consumer spending as a share of GDP has remained around 70% for a long time. By contrast, the proportion of fixed investment made up of reinforced concrete is only about 25%.

What's the situation in Vietnam's economy?

Vietnam’s demographic and urbanization dividendmay may be just beginning. On the demographic front, the demographic dividend is very important for the rising countries, for developing countries that lack the money and technology! In terms of population and structure, Vietnam’s age-appropriate labor force and manufacturing employment have been growing steadily; in urbanization, the urbanization rate in Vietnam is only 35% in 2017, and if we are to reach the 70-80% level in the developed world, there is at least room for growth in the next 10 years, at least for the next half-century.

What's the situation in Vietnam's economy?

Real estate is stable upward. When it comes to urbanization, we have to mention real estate. In Ho Chi Minh City, for example, as in China, the real estate market also has a trend of differentiation, most of the foreign investment into Vietnam’s real estate, basically flowtogy high-end and luxury housing. According to CBRE, the average price of luxury homes in Ho Chi Minh City rose by as much as 17 per cent to $5,518 per square metre in 2018, while affordable and mid-range residential prices rose by only 1 per cent. Of course, Vietnam also has its own difficulties, such as inflationary pressures, exchange rate depreciation, both due to high economic growth and market opening brought about by the inevitable phenomenon, China has encountered, or will encounter these problems. I believe that the development of Vietnam will continue in the future.

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