VIETNAM – ECONOMIC OVERVIEW & TRADE ANALYSIS

VIETNAM – ECONOMIC OVERVIEW & TRADE ANALYSIS

EIP/MTR/002/02/2016

(MARKET REPORT)

Export Initiatives & Partnerships Division,

Phone: +9714-4455333; Fax: +9714-4455355

E-mail: [email protected]; Web:

www.dedc.gov.ae

PO Box 123336, Dubai – UAE

Primary Information Sources: Prepared – February, 2016

Disclaimer: While all attempts have been made to collect & present accurate information, DE makes no warranty, express or implied, as to the fitness,

appropriateness of the above information for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any contained information.

mailto:[email protected]

http://www.dedc.gov.ae/

TABLE OF CONTENTS

# Description Page

1 Economic Overview 3

2 WTO Trade Profile 6

3 Vietnam Economy – Asian Development Bank 7

4 Economic Freedom Score (Heritage Foundation) 9

5 Top Products imported by Vietnam and Main Sourcing

Countries (ITC Trade Map) 11

6 Doing Business In Vietnam, 2015 (World Bank) 20

Economic Overview, 2015 Vietnam is a developing economy in the Southeast Asia. In recent years, the nation has been rising

as a leading agricultural exporter and an attractive foreign investment destination. Vietnam's key

products are: rice, cashew nuts, black pepper, coffee, tea, fishery products and rubber.

Manufacturing, information technology and high-tech industries constitute a fast growing part of

the economy. Vietnam is also one of the largest oil producers in the region. Vietnam's currency is

the Vietnamese dong. The exchange rate between the U.S. dollar and the Vietnamese dong is

important because the dong, although not freely convertible, is loosely pegged to the dollar through

an arrangement known as a "crawling peg". This mechanism allows the dollar–dong exchange rate

to adjust gradually to changing market conditions. Currently, 1 U.S. dollar is equivalent to about

22,300 Vietnamese dong.

International trade has a significant role in Vietnam’s present economy as the country accelerates

its transition to the modern market economy as well as deeper and wider integration into global

economy. Export in particular has proven instrumental in economic recovery and resilient in facing

the challenges as a part of the world’s economy – still subdued by the global financial crisis and

economy recession since 2008. Liberalisation, market opening and social policies have led to

significant economic growth, development progress and poverty reduction. Since 1993, the

economy has grown over five per cent each year.

Economic reforms culminated in WTO accession in 2007, which has further boosted international

trade and foreign investment and trade has increased strongly in both directions. Vietnamese

export figures have been growing at double-digit rates for several years, reaching US$132 billion

in 2013. Trade flows from Australia to Vietnam started decreasing in 2012 for the first time in 10

years, from US$2.1 billion in 2011 to US$1.6 billion in 2013. Goods worth US$3.5 billion were

imported into Australia from Vietnam in 2013.

Vietnam GDP Growth Rate

The Gross Domestic Product (GDP) in Vietnam expanded 7 percent in the fourth quarter of 2015

over the same quarter of the previous year. GDP Growth Rate in Vietnam averaged 6.15 percent

from 2000 until 2015, reaching an all-time high of 8.46 percent in the fourth quarter of 2007 and

a record low of 3.14 percent in the first quarter of 2009. Annual Growth Rate in Vietnam averaged

6.49 percent from 2000 until 2015, reaching an all-time high of 8.48 percent in the fourth quarter

of 2007 and a record low of 3.12 percent in the first quarter of 2009. GDP Growth Rate in Vietnam

is reported by the General Statistics Office of Vietnam.

GDP per Capita

The Gross Domestic Product per capita in Vietnam was last recorded at 1077.91 US dollars in

2014. The GDP per Capita in Vietnam is equivalent to 9 percent of the world's average. GDP per

capita in Vietnam averaged 562.33 USD from 1984 until 2014, reaching an all time high of

1077.91 USD in 2014 and a record low of 262.95 USD in 1984. GDP per capita in Vietnam is

reported by the World Bank.

Vietnam Balance of Trade

Vietnam recorded a trade deficit of 200 USD million in January of 2016, as compared to a 361

USD million gap a year earlier. Exports reached 13,800 USD million in January while imports were

at 14,000 USD million. The country posted an upwardly revised 560 USD million gap in December

2015. For full year of 2015, sales hit 162,100 USD million while purchases came in at 165,600

USD million. Trade deficit during the period stood at 3,500 USD million, widening from an earlier

estimate of a deficit 3,170 USD million. Balance of Trade in Vietnam averaged -419.37 USD Million

from 1990 until 2016, reaching an all-time high of 1444 USD Million in January of 2014 and a

record low of -3888 USD Million in December of 1996. Balance of Trade in Vietnam is reported by

the General Statistics Office of Vietnam.

Vietnam Imports

Imports in Vietnam decreased to 14,000 USD Million in January of 2016 from 14,300 USD Million

in December of 2015. For full year of 2015, purchases reached165,600 USD million. Imports in

Vietnam averaged 5323.97 USD Million from 1990 until 2016, reaching an all-time high of 14938

USD Million in May of 2015 and a record low of 740 USD Million in February of 1999. Imports in

Vietnam is reported by the General Statistics Office of Vietnam.

Source: Trading Economics, http://www.tradingeconomics.com/

Imports:

Value: US$ 165.5 Billion (2015 Est.)

Main Products: Electrical, electronic equipment, Machinery, nuclear reactors, boilers, etc, Mineral

fuels, oils, distillation products, etc, Plastics and articles thereof, Iron and steel

Major Partners: China, South Korea, Japan, Thailand

Exports:

Value: US$ 171 Billion (2015 Est.)

Main Products: Electrical, electronic equipment, Footwear, gaiters and the like, parts thereof,

Articles of apparel, Machinery, Fish, crustaceans, molluscs, aquatic invertebrates nes

Major Partners: USA, China, Japan, South Korea, Hong Kong.

Source: ITC, Trademap

http://www.tradingeconomics.com/

198Download the data:www.wto.org/statistics

World Trade OrganizationTrade Profiles 2015

BASIC INDICATORS Population (thousands, 2014) 90 730 Rank in world trade, 2014 Exports ImportsGDP (million current US$, 2014) 186 205 Merchandise 32 32GDP (million current PPP US$, 2014) 510 715 excluding intra-EU trade 22 22Current account balance (million US$, 2013) 9 471 Commercial services 56 53Trade per capita (US$, 2012-2014) 3 130 excluding intra-EU trade 36 36Trade to GDP ratio (2012-2014) 164.2

2014 125

Exports of goods and services (volume, 2010=100) 168Imports of goods and services (volume, 2010=100) 150

TRADE POLICY WTO accession 11 January 2007 Contribution to WTO budget (%, 2015) 0.479Trade Policy Review 17, 19 September 2013 Import duties collected GPA accession Observer in total tax revenue ...Tariffs and duty free imports to total imports ...

Tariff binding coverage (%) 100 Number of notifications to WTO and measures in force MFN tariffs Applied 2014 30

Simple average of import duties Goods RTAs - services EIAs notified to WTO 9 - 5All goods 11.5 9.5 Anti-dumping (30 June 2015) ...

Agricultural goods (AOA) 19.1 16.3 Countervailing duties (30 June 2015) ...Non-agricultural goods 10.4 8.4 Safeguards 1

0.0 0.03 - 0

44.5 Original panel / Appellate Body (AB) reports 2 - 0 56.5 Compliance panel / AB reports (Article 21.5 DSU) 0 - 0

Services sectors with GATS commitments 105 Arbitration awards (Article 22.6 DSU) 0 - 0

MERCHANDISE TRADE Value2014

150 475 149 261

2014 a 0.79 0.78

Breakdown in economy's total exports

Agricultural products 17.6 Agricultural products 11.5Fuels and mining products 8.0 Fuels and mining products 11.4Manufactures 73.9 Manufactures 76.5

1. European Union (28) 18.4 1. China 27.92. United States 18.1 2. Korea, Republic of 15.73. Japan 10.3 3. Japan 8.84. China 10.0 4. European Union (28) 7.15. Korea, Republic of 5.1 5. Chinese Taipei 7.1

COMMERCIAL SERVICES TRADE Value2014 2013

10 833 14 305

2014 0.22 0.30

Breakdown in economy's total exports By principal services item

... ... 21.4 54.1 67.7 15.0 10.9 30.9

INDUSTRIAL PROPERTY

Madrid Total 5 130 24 360

September 2015

Viet Nam

Annual percentage change2010-2014 2013 2014

Real GDP (2010=100) 6 5 614 17 1211 17 13

Final bound

Non ad-valorem duties (% total tariff lines) Number of disputes (complainant - defendant) Requests for consultation

in agricultural goods (AOA) in non-agricultural goods

Annual percentage change2010-2014 2013 2014

Merchandise exports , f.o.b. (million US$) 20 15 14Merchandise imports , c.i.f. (million US$) 15 16 13

2014 aShare in world total exports Share in world total imports

Breakdown in economy's total imports By main commodity group (ITS) By main commodity group (ITS)

By main destination By main origin

Annual percentage change2010-2014 2014

Commercial services exports (million US$) 10 11 2Commercial services imports (million US$) 10 10 5

2014Share in world total exports Share in world total imports

Breakdown in economy's total imports By principal services item

Goods-related services Goods-related services Transportation Transportation Travel Travel Other commercial services Other commercial services

Patent grants by patent office, 2013 Trademark registrations by office, 2013Residents Non-residents Total Direct residents Direct non-residents

59 1 123 1 182 14 502 4 728

Outstanding notifications in WTO Central Registry

MFN duty free imports (%, 2013)

a Breakdowns by destination/origin refer to 2013.

Viet Nam

http://www.wto.org/english/res_e/statis_e/statis_e.htm

PagePublished 02 August 2014

Viet Nam: EconomyFaster Gross Domestic Product growth in Viet Nam, at 6.3% in the first halfover the same period in 2014, was driven by strong expansion inmanufacturing, construction, and mining.

Selected economic indicators (%) 2015 2016

ADO 2015 Update ADO 2015 Update

GDP Growth 6.1 6.5 6.2 6.6

Inflation 2.5 0.9 4.0 4.0

Current Account Balance (share of GDP) 3.1 0.5 1.5 1.0

Source: Asian Development Outlook 2015; Asian Development Outlook 2015 Update

Economic performanceSustained inflows of foreign direct investment into manufacturing have propelled Viet Nam’sexports in recent years. Private consumption is growing robustly, supported by low inflation,higher offfarm employment, and improved consumer confidence.

Inflation subsided to 0.8% year on year in the first 8 months, continuing a steep decline since2011, and the forecast for 2015 is revised down from March.

In contrast with most other subregional economies, Viet Nam recorded solid growth inmerchandise exports in the first half. Still, imports rose at a much faster pace than exports,reflecting strong domestic demand for capital and consumer goods. A lower trade surplus cut thecurrent account surplus. Forecasts for current account surpluses are lowered from March,

http://www.adb.org/publications/asian-development-outlook-2015-financing-asias-future-growth

http://www.adb.org/publications/asian-development-outlook-2015-update-enabling-women-energizing-asia

particular for 2015. The central bank devalued the Viet Nam dong against the US dollar threetimes in the first 8 months, by 1% each time, to support the competitiveness of exports.

Economic prospectsAs these economic trends are projected to continue, growth forecasts are raised from the AsianDevelopment Outlook 2015 report.

Growth in credit has picked up and looks likely to exceed the government’s target. Fiscal policysupports economic growth, though concerns over rising public debt could prompt a tightening nextyear. The outlook for trade and investment is bolstered by an easing of restrictions on foreigninvestment in shares and property and by the conclusion in August of a Viet Nam–EuropeanUnion freetrade agreement.

By the end of 2015, inflation is seen rising to 2.0%. The forecast for 4.0% yearaverage inflation in2016 is retained.

Excerpted from the Asian Development Outlook 2015 Update.

Related Fact SheetKey Indicators 2015: Viet NamBasic Statistics

© 2016 Asian Development Bank

This page was generated from http://www.adb.org/countries/vietnam/economy on 15February 2016

.

http://www.adb.org/publications/asian-development-outlook-2015-update-enabling-women-energizing-asia

http://www.adb.org/node/27813

http://www.adb.org/publications/key-indicators-asia-and-pacific-2015#country

http://www.adb.org/node/39195

451

How Do We Measure Economic Freedom? See page 467 for an explanation of the methodology

or visit the Index Web site at heritage.org/index.2014 data unless otherwise noted.Data compiled as of September 2015.

Quick Facts

BACKGROUND: The Socialist Republic of Vietnam remains a Communist dictatorship characterized by political repres-sion and an absence of civil liberties. Economic liberaliza-tion began in 1986 with the doi moi reforms, and Vietnam joined the World Trade Organization in 2007. In 2012, Prime Minister Nguyen Tan Dung acknowledged mismanagement of the economy and affirmed his commitment to reform-ing the state sector, but the Vietnamese are still waiting for dynamic action. Vietnam’s economy is driven primarily by tourism and exports. Persistent inflation and the absence of a transparent legal and regulatory system are disincentives to long-term investment. Vietnam is a party to the recently concluded Trans-Pacific Partnership, which, if implemented, will require further economic liberalization.

Population: 90.6 millionGDP (PPP): $510.7 billion6.0% growth in 20145-year compound annual growth 5.9%$5,635 per capitaUnemployment: 2.3%Inflation (CPI): 4.1%FDI Inflow: $9.2 billionPublic Debt: 58.7% of GDP

Economic Freedom Score

0 20 40 60 80 100

Country Comparisons

Freedom Trend

Country

WorldAverage

RegionalAverage

FreeEconomies

2012 2013 2014 20162015

5025 75

0 100Leastfree

Mostfree

49

50

51

52

53

54

55

54.0

60.7

59.0

83.9

54.0

V ietnam has gradually been transforming itself into a more open, more market-oriented economy and is

beginning to enjoy the benefits of its steady but slow inte-gration into the global commercial system. Reforms have included partial privatization of state-owned enterprises, liberalization of the trade and investment regimes, and modernization of the financial sector.

ECONOMIC FREEDOM SNAPSHOT• 2016 Economic Freedom Score: 54.0 (up 2.3 points)• Economic Freedom Status: Mostly Unfree• Global Ranking: 131st• Regional Ranking: 27th in the Asia–Pacific Region• Notable Successes: Trade Freedom• Concerns: Rule of Law and Regulatory Efficiency• Overall Score Change Since 2012: +2.7

The rule of law remains an issue, a remnant of decades of Communism. The court system is inefficient, and the pro-tection of intellectual property has been a major area of contention in international trade negotiations. The lack of democratic governance and accountability contributes to a permissive environment for corruption.

World Rank: 131 Regional Rank: 27

VIETNAM

452 2016 Index of Economic Freedom

Property RightsFreedom from

Corruption

Fiscal FreedomGovernment

Spending

Business FreedomLabor FreedomMonetary Freedom

Trade FreedomInvestment FreedomFinancial Freedom

Business FreedomLabor Freedom

Monetary Freedom

REGULATORY EFFICIENCY

OPENMARKETS

Trade FreedomInvestment Freedom

Financial Freedom

GOVERNMENT SIZE

Fiscal FreedomGovernment Spending

RULE OF LAW

Property RightsFreedom from Corruption

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

Country World Average Rank Change1–Year

Score

RULE OF LAW GOVERNMENTSIZE

REGULATORY EFFICIENCY OPEN MARKETS

+5.0+21.0

+10.5–12.0

+18.3–1.5

+15.4

+38.4–5.0

+10.0

158th122nd

85th71st

124th78th

145th

63rd159th105th

15.031.0

79.375.1

58.362.670.6

83.025.040.0

00

+0.2–2.0

–3.2–0.3+3.8

+4.4+10.0+10.0

Long-Term Score Change (since 1995)

THE TEN ECONOMIC FREEDOMS

Corruption and graft blight all levels of Vietnam’s government and judiciary. Internal dis-sent and factionalism, bureaucratic rivalries, nepotism, vast corruption within the Commu-nist Party, and a general lack of accountability ensure that many agencies are run as fiefdoms. Many state companies operate with little transparency. Private property rights are not strongly respected, and resolution of disputes can take years.

The top personal income tax rate is 35 percent, and the top corporate tax rate is 22 percent. Other taxes include a value-added tax and a property tax. The overall tax burden equals 18.9 percent of total domestic income. Government spending amounts to 28.8 percent of GDP. Defi-cits have been persistently high in recent years, and public debt now equals nearly 60 percent of total domestic product.

Despite ongoing reform efforts, the overall business regulatory framework lacks efficiency. Although no minimum capital is required, starting a business remains time-consuming. The labor market remains dominated by the public sector, but informal labor activity is consider-able. The government has reduced pharmaceutical subsidies but maintains price controls and high subsidies for rice and other agricultural commodities.

Vietnam’s average tariff rate is 3.5 percent. Export taxes are imposed on several goods. The government screens foreign investment, and investment in some sectors of the economy is restricted. State-owned enterprises distort the economy. The financial sector continues to expand, and capital markets are evolving. Directed lending by state-owned commercial banks has been scaled back in recent years.

VIETNAM (continued)

Sources: ITC calculations based on UN COMTRADE statistics.2015 values estimated based on 2013-14 growth

Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

TOTAL All products 165,579,734 147,839,048 2,378,091 14China Korea Japan

'8542 Electronic integrated circuits and microassemblies 10,398,175 10,295,223 (8,076,042) 65 Korea Singapore China

'8517 Electric app for line telephony,incl curr line system 10,313,964 9,376,331 15,016,485 45 China Korea Thailand

'2710 Petroleum oils, not crude 8,751,545 8,028,940 (6,927,065) 1 Singapore China Taipei

'7208

Flat-rolld products of iron/non-al/s wdth>/=600mm,hr,not

clad 1,795,368 2,163,094 (2,147,303) -2Japan Korea Taipei

'3901 Polymers of ethylene, in primary forms 2,243,941 1,934,432 (1,896,125) 14 KSA Korea Thailand

'6006 Other knitted or crocheted fabrics 2,212,560 1,923,965 (1,769,668) 22 China Korea Taipei

'7225

Flat-rolled products of other alloy steel, of a width of 600mm

or more 4,367,795 1,907,334 (1,869,319) 63China Japan Taipei

'3004 Medicament mixtures 2,019,729 1,870,119 (1,782,018) 12 India France Germany

'2304 Soya-bean oil-cake and other solid residues 1,989,974 1,859,789 (1,815,023) 12 Argentina Brazil China

'8534 Printed circuits 1,455,255 1,455,255 (1,011,911) 40 Korea China Taipei

'5201 Cotton, not carded or combed 1,749,949 1,422,723 (1,421,006) 18 USA India Australia

'3902 Polymers of propylene/other olefins, in primary forms 1,527,806 1,401,657 (1,251,006) 13 KSA Korea Singapore

'8536 Electrical app for switchg (ex fuse,switche,etc) 1,425,167 1,344,497 (874,011) 27 China Japan Korea

'8471 Automatic data processing machines;optical reader 1,631,927 1,316,070 2,495,791 12 China Malaysia Taipei

'8529 Part suitable for use solely/princ with televisions, 2,260,766 1,262,998 (961,989) 43 China Japan Malaysia

'7204 Ferrous waste and scrap; remelting scrap ingots .. 1,241,566 1,241,566 (1,215,571) 8 Japan Australia HongKong

'3907 Polyacetal,o polyether,epoxide resin,polycarbonate 1,349,981 1,227,255 (1,180,952) 15 Korea Taipei Thailand

'4407 Wood sawn/chipped lengthwise, sliced/peeled 1,851,983 1,218,410 (977,550) 22 Laos Cambodia USA

'1005 Maize (corn) 2,200,871 1,215,951 (1,185,198) 31 Brazil India USA

'3926 Article of plastic nes. 1,346,726 1,171,066 (480,113) 18 Japan China Korea

'5407 Woven fabrics of synth. filam yarn (incl. hd no 54.04) 1,346,046 1,103,316 (823,537) 24 China Korea Taipei

Code Product label

Trade Indicators

Top Exporters to Vietnam for Selected

Products

List of Top products at 4 digits HS level imported by Viet Nam in 2014-15


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'8708 Parts & access of motor vehicles 1,387,958 1,059,510 (74,973) 1 Korea Thailand Japan

'8525 Television camera, transmissn app for radio-tele 1,214,801 1,047,242 (631,428) 57 China Korea Japan

'8504 Electric transformer,static converter 1,187,595 1,032,691 (257,208) 20 China Japan Korea

'8473 Parts&acces of computers & office machines 961,164 1,001,212 (651,792) 57 China Korea Taipei

'4107 Leather of other animals, o/t leather of 41.08/41.09 1,410,158 993,069 (718,935) 31 Korea China Italy

'8544 Insulated wire/cable 1,003,483 955,698 1,763,364 14 China Japan Korea

'8479 Machines&mech appl having indiv functions, nes 886,319 932,967 (867,994) 14 China Korea Japan

'5515 Woven fabrics of synthetic staple fibres, nes 1,164,009 931,207 (911,431) 14 China Korea Taipei

'7403 Refined copper and copper alloys, unwrought 1,030,089 880,418 (880,362) -1 Chile Korea China

'1201 Soya beans, whether or not broken 969,345 873,284 (872,903) 59 USA Brazil Argentina

'8443 Printing machinery; machines for ancillar uses 846,104 846,104 1,621,503 -1 Japan China Korea

'8541 Diodes/transistors&sim semiconductor devices; etc 932,612 832,689 (660,045) 35 Korea China Japan

'3808 Insecticides, fungicides, herbicides packaged for retail 879,267 829,497 (734,568) 9 China Singapore Germany

'8507 Electric accumulator 977,806 828,649 (126,320) 67 China Korea Malaysia

'5512 Woven fab of syn staple fibre (> 85% of such fiber) 955,490 809,737 (794,645) 12 China Korea Taipei

'7326 Articles of iron or steel nes 887,978 772,155 (583,618) 26 Korea China Japan

'8704 Trucks, motor vehicles for the transport of goods 1,486,077 766,019 (761,171) 16 China Thailand Korea

'8518 Microphones&stand;loudspeaker;head/earphone 741,530 741,530 347,654 37 China Korea Malaysia

'5903 Textile fabrics impregnated, coated, covered/laminated 804,745 718,522 (671,165) 17 China Korea Taipei

'7601 Unwrought alumimum 1,107,740 714,671 (667,863) 7 Malaysia Australia Taipei

'7219 Flat-rolled products of stainless steel, of a width 739,943 704,708 (559,241) 7 China Korea Thailand

'5402 Synthetic filam yarn, not put up 740,140 691,720 (160,476) 6 China Taipei Korea

'6004 Knitted/crocheted fabrics width>30cm, … 809,666 686,158 (552,606) 28 China Korea Taipei


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'0801 Brazil nuts, cashew nuts & coconuts 703,612 651,493 1,398,148 18 Côte d'Ivoire Nigeria Ghana

'1001 Wheat and meslin 681,203 648,765 (648,044) 0 Australia USA Canada

'3105 Mixtures of nitrogen, phosphorous,potassium fertilizers 531,701 618,257 (384,255) 7 China Korea Russia

'7308 Structures (rods,angle, plates) of iron & steel nes 681,412 613,885 (396,300) 25 China Korea Taipei

'3920 Other plates, sheets, film, foil, tape, strip of plastics etc. 809,087 612,945 (436,632) 15 China Korea Thailand

'8477 Machinery for wrkg rbr/plas/ for the mfr of prod 668,840 602,559 (574,039) 15 China Japan Taipei

'7210 Flat-rolled prod of iron or non-al/s 659,822 599,838 102,707 18 China Japan Korea

'5208 Woven cotton fabrics, 619,190 568,064 (558,900) 7 China Korea HongKong

'8415 Air conditioning machines, with motor-driven elements 627,022 564,885 (504,028) 9 Thailand Malaysia China

'1511 Palm oil & its fraction 603,774 559,050 (508,400) 1 Malaysia Indonesia Thailand

'8537 Board & panels, equipped with two/more switches 675,859 553,983 (468,824) 26 Korea China Taipei

'5209 Woven cotton fabrics, 85% or more cotton 585,692 532,447 (507,881) 4 China Taipei Korea

'4403 Wood in the rough 656,778 529,660 (482,545) 18 Laos Cameroon Myanmar

'8528 Television receivers (video monitors/ projectors) 520,214 525,469 23,119 10 Malaysia China Indonesia

'0402 Milk and cream, concentrated or sweetened 660,741 524,398 (437,674) 9 USA New ZealandAustralia

'3903 Polymers of styrene, in primary forms 491,178 511,644 (449,109) 7 Taipei Korea Malaysia

'0306 Crustaceans 948,871 489,109 2,064,645 56 India Ecuador Indonesia

'3919 Self-adhesive plates, sheets, film etc of plastic 614,446 483,816 (455,503) 42 Korea China Japan

'8402 Steam or vapour generatg boiler; 429,519 482,606 (364,509) 61 China Japan Taipei

'7227 Bars&rods,hot-rolled,in wound coils,of other alloy steel 663,473 473,909 (465,441) 85 China Korea Japan

'7606 Aluminum plates, sheets and strip, 383,996 468,288 (455,923) 18 Korea China Japan

'9031 Measuring or checking machines, nes 617,948 461,155 (381,704) 33 Korea Japan USA

'2106 Food preparations, nes 523,175 451,013 (349,724) 29 USA Singapore Netherlands

'9006 Photographic camera;photograph flashlight app 549,041 450,034 1,413,214 69 Taipei China HongKong


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'8532 Electrical capacitors, fixed, variable or adjustable 567,019 450,015 (440,826) 44 Japan Singapore China

'8428 Lifting/handling/loading/unloadg machinery 855,491 447,901 (435,918) 17 China Korea Taipei

'8481 Tap,cock,valve for pipe,tank for the like, 446,924 442,499 (157,323) 9 China Japan Korea

'2301 Flour etc of meat, offal,fish,crust etc unfit for consumption 456,093 434,374 (218,599) 11Italy Peru Thailand

'8701 Tractors (other than tractors of heading no 87.09) 1,799,593 431,557 (417,268) 42 China Korea Japan

'6406 Part of footwear;romovable in-soles,heel cushion 517,408 431,173 (58,487) 13 China USA Korea

'8480 Moulding boxe for met foundry;mould base; etc 493,540 429,165 (373,274) 20 Korea China Japan

'2309 Animal feed preparations, nes 495,489 427,146 (235,765) 10 China Thailand USA

'8502 Electric generating sets and rotary converters 794,125 426,949 (282,557) 8 China Japan Taipei

'8414 Air, vacuum pumps; hoods incorp a fan 412,700 425,464 (212,226) 4 China Japan Korea

'7102 Diamonds, not mounted or set 518,697 418,304 (17,285) 64 Belgium Mauritius China

'8445

Machine for preparing textile fiber;spinning,twisting,windg

mach 821,983 417,250 (416,547) 27China Japan India

'1901 Malt extract; food preparations of flour, meal, starch 350,220 416,928 (311,791) 16 Singapore Thailand Ireland

'4002 Synthetic rubber&factice from oil 420,896 412,643 (399,926) 2 Korea Japan Taipei

'8421 Centrifuges, incl centrifugal dryers; filtering/purifying 479,156 406,064 (231,237) 12 China Korea Japan

'0303 Fish, frozen, whole 478,353 401,977 (155,361) 18 Taipei Japan Korea

'8419 Machinery,plant/lab,involving a change of temp 638,100 401,321 (368,594) 15 China Korea Belgium

'3923

Plastic packing goods or closures stoppers, lids, caps,

closures, plas 459,595 399,648 424,799 17China Japan Taipei

'4810 Paper & paperboard, coated with kaolin or other 403,342 395,433 (392,098) 7 China Korea Indonesia

'4104 Leather of bovine/equine animal, other than hd 4108/4109 588,963 392,642 (339,223) -1USA Brazil Italy

'6005

Warp knit fabrics (incl. those made on galloon knitting

machines) excl. 60.01, 60.04 478,385 385,794 (354,426) 14China Taipei Korea


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'7304 Tubes, pipes and hollow profiles, seamless, iron/steel 417,002 382,571 (330,695) 17 China Japan Korea

'5503 Synthetic staple fibres, not carded 340,298 382,357 (263,960) 2 Taipei Thailand Korea

'8703 Cars (incl. station wagon) 741,964 378,553 (377,520) -10 Japan Germany Korea

'8408 Diesel or semi-diesel engines 448,845 377,181 (368,871) 2 Korea Japan China

'7318 Iron & steel screws,bolts,nuts,coach-screws, etc 420,656 372,262 (28,730) 8 Japan China Korea

'9607 Slide fasteners and parts thereof 424,695 369,300 (336,152) 14 Korea China Taipei

'8501 Electric motors and generators (excl generating sets) 403,120 359,929 537,918 12 China Japan USA

'9018 Electro-medical apparatus 351,949 359,132 21,155 5 Japan USA Germany

'8452 Sewing machine 422,846 358,344 (37,525) 16 China Japan Taipei

'3921 Plates, sheets, film, foil and strip, of plastics, nes 484,847 353,903 (179,326) 23 China Korea Taipei

'5603 Nonwovens, w/n impregnated, coated, covered/lamin 439,213 351,370 (306,329) 23 China Korea Taipei

'3302 Odoriferous mixtures as raw materials for industry 402,736 350,205 (348,982) 18 Singapore Indonesia Ireland

'8418 Refrigerator, freezer, etc 339,508 350,008 (281,782) 8 Thailand China Indonesia

'8429 Self-propelld bulldozer, angledozer, grader, excavator,etc 452,169 342,552 (326,620) -12Japan Korea China

'4805 Uncoated paper and paperboard nes, in rolls or sheets 393,569 339,284 (281,643) 22 Taipei Thailand Indonesia

'3104 Mineral or chemical fertilizers, potassic 257,467 338,773 (325,576) 4 Russia Belarus Canada

'9002 Lenses, prisms, mirrors & other optical elements, 410,412 336,403 (232,588) 20 Korea China Japan

'4811 Paper, paperboard, cellulose wadding & webs 337,816 334,471 (302,043) 6 Singapore Thailand China

'7228 Bars&rods,other alloy steel; hollow drill bars, etc. 400,440 333,700 (323,183) 40 China Japan Taipei

'8483 Transmission shafts&cranks, bearing housing; 345,900 332,596 (243,397) 5 China Japan Korea

'3824 Chemical industry products and residuals nes 379,975 324,765 (137,827) 16 China Japan Thailand

'8413 Pumps for liquids; liquid elevators 324,434 318,073 (273,314) 5 China Indonesia Korea

'4016 Articles of vulcanised rubber o/t hard rubber, nes 360,149 305,211 (6,488) 14 China Korea Japan


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'3904 Polymers of vinyl chloride/other halogenated olefins, 363,012 305,052 (230,636) 11 Japan China Taipei

'7207 Semi-finished products of iron or nonalloy steel 466,321 304,785 (108,227) -30 Japan China Korea

'2917 Polycarboxylic acids, their anhydrides, halides etc 304,646 298,673 (284,908) 7 Thailand Taipei Korea

'7801 Unwrought lead 318,038 291,778 (227,911) 11 Korea China Australia

'8426 Derricks; cranes; straddle carriers,&works trucks 437,075 291,383 (272,157) 0 China Japan Germany

'8474 Machinery -sorting/screening/washg; 298,717 287,228 (278,800) -10 China Japan Korea

'3909 Amino-resins, pheonolic resins and polyurethanes, 310,994 285,316 (275,666) 10 Taipei China Korea

'3204 Synthetic organic coloring matter & preperations 343,805 279,516 (271,206) 13 China Taipei Korea

'4011 New pneumatic tires, of rubber 275,215 277,995 184,196 11 Thailand China Japan

'3102 Mineral or chemical fertilizers, nitrogenous 138,471 271,512 (162,852) -13 China Japan Taipei

'7408 Copper wire 324,166 270,138 (236,373) 11 Korea Thailand Taipei

'0102 Live bovine animals 846,755 268,811 (267,086) 85 Australia Thailand Laos

'8461 Machine-tool for planing/shaping,etc sawing&other 1,369,670 263,398 (260,095) 52 Japan China Korea

'7202 Ferro-alloys 676,592 262,245 170,699 54 China India Malaysia

'0505 Feathers for stuffing and & down 345,626 261,838 (255,536) 64 China Korea Taipei

'5513 Woven fab of syn stapl fib ,mixed with cotton (wt 263,395 260,787 (257,811) 6 China Korea Japan

'8454 Converter,ladle,ingot moulds&casting mach, 974,715 260,619 (259,237) 45 China Japan Germany

'2903 Halogenated derivatives of hydrocarbons 266,685 256,428 (256,335) 3 Taipei Japan Thailand

'2905 Acyclic alcohols and their derivatives 294,863 256,403 (255,248) 14 Taipei Korea Singapore

'2941 Antibiotics 287,832 254,719 (253,558) 13 China India Austria

'7901 Unwrought zinc 342,158 253,450 (248,419) 10 Korea Australia Japan

'8462 Machine-tool for wrkg met by forging/ hammerg,etc 331,559 251,181 (226,901) 3 Japan China Korea

'8455 Metal-rolling mills and rolls therefor 788,316 250,259 (247,955) 32 China Japan India

'8431 Machinery part (hd 84.25 to 84.30) 345,979 248,906 (171,883) 6 China Taipei Germany


Imported

value 2015

(USD '000)

Est.

Imported

value 2014

(USD '000)

Trade balance

2014 (USD

'000)

Annual value

growth 2010-

14 (%, p.a.)

Code Product label

Trade Indicators


Products


'3402 Organic surface-active agents, washing & clean 269,804 245,276 (118,133) 14 Thailand China Malaysia

'5804 Tulles&other net fab not incl woven,knit/crocheted fab; 310,368 244,384 (241,171) 10 China Taipei Korea

'8802 Aircraft, (helicopter,aeroplanes) & spacecraft 55,834 242,756 (119,324) 11 France Germany USA

'3506 Prepared glues & adhesives nes; glue packaged 256,275 237,292 (194,753) 13 China Korea Taipei

'2701 Coal; briquettes, ovoids & similar solid fuels 255,644 236,707 309,669 13 Indonesia Australia Russia

'8422 Dish washing machines; machinery for aerating bottles 328,463 236,304 (223,965) 10 Germany Italy China

'8516 Electric instantaneous water heater,space htg; hair 285,794 236,193 (122,942) 16 China Thailand Malaysia

'5210 Woven cotton fabrics, less than 85% cotton, 226,403 235,836 (227,763) 6 China Korea Japan

'8539 Electric filament or discharge lamps 162,211 225,293 (180,210) 56 Korea China Germany

'2915 Saturated acyclic monocarboxylic acids & derivatives 236,649 221,167 (220,657) 15 China Taipei Singapore

'6117 Clothing access nes,knitted/croch 221,652 217,306 (202,327) 17 China Taipei Korea

'3906 Acrylic polymers in primary forms 256,145 217,072 (202,270) 13 Korea China Indonesia

'2922 Oxygen-function amino-compounds 213,539 211,425 (123,906) 20 China Indonesia Thailand

'2306 Oil-cake nes 177,433 211,230 (207,351) 14 India UAE Canada

'7209 Flat-rolld prod of iron/non-alloy steel 151,029 209,763 63,506 -11 Japan China Korea

11 Vietnam Doing Business 2016

THE BUSINESS ENVIRONMENTThe absolute values of the indicators tell another part of

the story (table 1.1). The indicators, on their own or in

comparison with the indicators of a good practice

economy or those of comparator economies in the

region, may reveal bottlenecks reflected in large numbers

of procedures, long delays or high costs. Or they may

reveal unexpected strengths in an area of business

regulation—such as a regulatory process that can be

completed with a small number of procedures in a few

days and at a low cost. Comparison of the economy’s

indicators today with those in the previous year may

show where substantial bottlenecks persist—and where

they are diminishing.

Table 1.1 Summary of Doing Business indicators for Vietnam

Indicator

Vie

tnam

DB

20

16

Vie

tnam

DB

20

15

Ch

ina D

B2

01

6

Ind

on

esi

a D

B2

01

6

Lao

PD

R D

B2

01

6

Mala

ysi

a D

B2

01

6

Ph

ilip

pin

es

DB

20

16

Th

ail

an

d D

B2

01

6

Best

perf

orm

er

glo

ball

y

DB

20

16

Starting a Business

(rank) 119 125 136 173 153 14 165 96 New Zealand (1)

Starting a Business (DTF

Score) 81.25 77.68 77.46 66.04 73.81 95.34 68.56 85.07 New Zealand (99.96)

Procedures (number) 10.0 10.0 11.0 13.0 6.0 3.0 16.0 6.0 New Zealand (1.00)*

Time (days) 20.0 34.0 31.4 47.8 73.0 4.0 29.0 27.5 New Zealand (0.50)

Cost (% of income per

capita) 4.9 5.3 0.7 19.9 4.9 6.7 16.1 6.4 Slovenia (0.00)

Paid-in min. capital (%

of income per capita) 0.0 0.0 0.0 31.0 0.0 0.0 3.3 0.0 105 Economies (0.00)*

Dealing with

Construction Permits

(rank)

12 12 176 107 42 15 99 39 Singapore (1)

Dealing with

Construction Permits

(DTF Score)

82.21 82.33 48.29 66.68 75.06 81.1 67.71 75.64 Singapore (92.97)

Procedures (number) 10.0 10.0 22.0 17.0 11.0 15.0 24.0 17.0 5 Economies (7.00)*


Indicator

Vie

tnam

DB

20

16

Vie

tnam

DB

20

15

Ch

ina D

B2

01

6

Ind

on

esi

a D

B2

01

6

Lao

PD

R D

B2

01

6

Mala

ysi

a D

B2

01

6

Ph

ilip

pin

es

DB

20

16

Th

ail

an

d D

B2

01

6

Best

perf

orm

er

glo

ball

y

DB

20

16

Time (days) 166.0 166.0 244.3 210.2 83.0 79.0 98.0 103.0 Singapore (26.00)

Cost (% of warehouse

value) 0.8 0.7 7.2 3.8 0.5 1.4 1.1 0.1 Qatar (0.00)

Building quality control

index (0-15) 14.0 14.0 9.0 13.0 6.5 13.0 11.0 11.0 New Zealand (15.00)

Getting Electricity

(rank) 108 130 92 46 158 13 19 11 Korea, Rep. (1)

Getting Electricity (DTF

Score) 63.34 56.91 68.66 80.73 45.19 90.05 86.89 90.5 Korea, Rep. (99.88)


Time (days) 59.0 115.0 143.2 79.0 134.0 32.0 42.0 37.0 Korea, Rep. (18.00)*

Cost (% of income per

capita) 1,322.6 1,432.8 413.3 383.0 1,522.6 30.7 28.7 45.9 Japan (0.00)

Reliability of supply and

transparency of tariff

index (0-8)

3.0 3.0 6.0 7.0 0.0 8.0 6.0 7.0 18 Economies (8.00)*

Registering Property

(rank) 58 58 43 131 66 38 112 57 New Zealand (1)

Registering Property

(DTF Score) 70.6 70.6 75.02 52.41 68.7 76.32 57.53 71.33 New Zealand (94.46)


Time (days) 57.5 57.5 19.5 27.4 53.0 13.0 35.0 3.0 3 Economies (1.00)*

Cost (% of property

value) 0.6 0.6 3.4 10.8 1.1 3.3 4.3 6.3 Saudi Arabia (0.00)

Quality of the land

administration index (0-

30)

14.0 14.0 17.0 8.3 9.5 27.5 12.5 13.5 3 Economies (28.50)*


Indicator

Vie

tnam

DB

20

16

Vie

tnam

DB

20

15

Ch

ina D

B2

01

6

Ind

on

esi

a D

B2

01

6

Lao

PD

R D

B2

01

6

Mala

ysi

a D

B2

01

6

Ph

ilip

pin

es

DB

20

16

Th

ail

an

d D

B2

01

6

Best

perf

orm

er

glo

ball

y

DB

20

16

Getting Credit (rank) 28 36 79 70 70 28 109 97 New Zealand (1)

Getting Credit (DTF

Score) 70 65 50 55 55 70 40 45 New Zealand (100)

Strength of legal rights

index (0-12) 7.0 7.0 4.0 5.0 6.0 7.0 3.0 3.0 3 Economies (12.00)*

Depth of credit

information index (0-8) 7.0 6.0 6.0 6.0 5.0 7.0 5.0 6.0 26 Economies (8.00)*

Credit registry coverage

(% of adults) 41.5 41.8 89.5 48.5 5.1 57.0 0.0 0.0 Portugal (100.00)

Credit bureau coverage

(% of adults) 6.9 1.4 0.0 0.0 0.0 77.1 14.0 60.2

22 Economies

(100.00)*

Protecting Minority

Investors (rank) 122 121 134 88 178 4 155 36 Singapore (1)*

Protecting Minority

Investors (DTF Score) 45 45 43.33 53.33 31.67 78.33 38.33 63.33 Singapore (83.33)*

Strength of minority

investor protection

index (0-10)

4.5 4.5 4.3 5.3 3.2 7.8 3.8 6.3 3 Economies (8.30)*

Extent of conflict of

interest regulation

index (0-10)

3.7 3.7 5.0 5.7 3.3 8.7 4.0 7.7 Singapore (9.30)*

Extent of shareholder

governance index (0-

10)

5.3 5.3 3.7 5.0 3.0 7.0 3.7 5.0 4 Economies (8.00)*

Paying Taxes (rank) 168 172 132 148 127 31 126 70 United Arab Emirates

(1)*

Paying Taxes (DTF

Score) 45.41 43.61 64.46 60.46 66.1 84.31 66.23 77.7

United Arab Emirates

(99.44)*

Payments (number per 30.0 32.0 9.0 54.0 35.0 13.0 36.0 22.0 Hong Kong SAR,


Indicator

Vie

tnam

DB

20

16

Vie

tnam

DB

20

15

Ch

ina D

B2

01

6

Ind

on

esi

a D

B2

01

6

Lao

PD

R D

B2

01

6

Mala

ysi

a D

B2

01

6

Ph

ilip

pin

es

DB

20

16

Th

ail

an

d D

B2

01

6

Best

perf

orm

er

glo

ball

y

DB

20

16

year) China (3.00)*

Time (hours per year) 770.0 872.0 261.0 234.0 362.0 118.0 193.0 264.0 Luxembourg (55.00)

Total tax rate (% of

profit) 39.4 40.8 67.8 29.7 25.3 40.0 42.9 27.5 Ireland (25.90)

Trading Across Borders

(rank) 99 98 96 105 108 49 95 56 Denmark (1)*

Trading across Borders

(DTF Score) 67.15 67.15 69.13 64.75 64.09 86.74 69.39 84.1 Denmark (100)*

Time to export: Border

compliance (hours) 57 57 26 39 3 20 42 51 15 Economies (0.00)*

Cost to export: Border

compliance (USD) 309 309 522 254 73 321 456 223 18 Economies (0.00)*

Time to export:

Documentary

compliance (hours)

83 83 21 72 216 10 72 11 Jordan (0.00)

Cost to export:

Documentary

compliance (USD)

139 139 85 170 235 45 53 97 20 Economies (0.00)*

Time to import: Border

compliance (hours) 64 64 92 99 5 24 72 50 19 Economies (0.00)*

Cost to import: Border

compliance (USD) 268 268 777 383 153 321 580 233 28 Economies (0.00)*

Time to import:

Documentary

compliance (hours)

106 106 66 144 216 10 96 4 21 Economies (1.00)*

Cost to import:

Documentary

compliance (USD)

183 183 171 160 115 60 50 43 30 Economies (0.00)*

Enforcing Contracts 74 74 7 170 92 44 140 57 Singapore (1)


Indicator

Vie

tnam

DB

20

16

Vie

tnam

DB

20

15

Ch

ina D

B2

01

6

Ind

on

esi

a D

B2

01

6

Lao

PD

R D

B2

01

6

Mala

ysi

a D

B2

01

6

Ph

ilip

pin

es

DB

20

16

Th

ail

an

d D

B2

01

6

Best

perf

orm

er

glo

ball

y

DB

20

16

(rank)

Enforcing Contracts

(DTF Score) 60.22 60.22 77.56 35.37 58.07 66.61 49.24 62.69 Singapore (84.91)

Time (days) 400.0 400.0 452.8 471.0 443.0 425.0 842.0 440.0 Singapore (150.00)

Cost (% of claim) 29.0 29.0 16.2 115.7 31.6 37.3 31.0 19.5 Iceland (9.00)

Quality of judicial

processes index (0-18) 6.5 6.5 14.1 6.3 6.5 12.0 7.5 6.5 3 Economies (15.50)*

Resolving Insolvency

(rank) 123 125 55 77 189 45 53 49 Finland (1)

Resolving Insolvency

(DTF Score) 35.83 35.02 55.43 46.48 0 62.49 56.81 58.84 Finland (93.81)

Recovery rate (cents on

the dollar) 20.1 18.6 36.2 31.2 0.0 81.3 21.4 42.5 Japan (92.90)

Time (years) 5.0 5.0 1.7 1.9 no

practice 1.0 2.7 2.7 Ireland (0.40)

Cost (% of estate) 14.5 14.5 22.0 21.6 no

practice 10.0 32.0 36.0 Norway (1.00)

Outcome (0 as

piecemeal sale and 1 as

going concern)

0 0 0 0 no

practice 1 0 1

Strength of insolvency

framework index (0-16) 8.0 8.0 11.5 9.5 0.0 6.0 14.5 11.5 4 Economies (15.00)*

Source: Doing Business database.

Note: DB2015 rankings shown are not last year’s published rankings but comparable rankings for DB2015 that capture the effects of such

factors as data revisions and changes to the methodology. The global best performer on time for paying taxes is defined as the lowest

time recorded among all economies in the DB2016 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory

contributions, and VAT or sales tax. If an economy has no laws or regulations covering a specific area—for example, insolvency—it

receives a “no practice” mark. Similarly, an economy receives a “no practice” mark if regulation exists but is never used in practice or if a

competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the

relevant indicator. * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name


indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business

website (http://www.doingbusiness.org).

Documents

VIETNAM – ECONOMIC OVERVIEW & TRADE ANALYSIS