The Socialist Republic of VietNam

Vietnam, shaped like the letter “S”, bordered by China to the north, Laos and Cambodia to the west, and the East Sea and Pacific Ocean to the east and south. With mountains and hills covering three-quarters of its land and a coastline over 3,000 kilometers long, Vietnam's diverse geography profoundly influences its natural beauty, culture, and economy​

Income group

Lower middle income

Region

Southeast Asia

Capital

Hanoi

Currency

Vietnam Dong (VND)

Administrative divisions

63 provinces and municipalities

Mainland area

331,690 km²

Internet penetration

79.1% (2024)

Mobile phone penetration

169.8% (2024)

Demographic profile

Population hit

0 M

38.1%

Urban population​ (2023)

61.9%​

Rural population​ (2023)

49.9%

Male (2023)

50.1%

Female (2023)

13%

Baby boomer (2021)

20%

Gen X (2021)

27%

Gen Y (2021)

24%

Gen Z (2021)

Employment profile

The labor force reached

0 M

68.9%

Participation rate (2023)

97.9%

Employment rate (2023)

36%

Labour force at MSMEs (2021)

10.80%

High-skilled labour ratio (2017)

US$ 293

Monthly average income (2023)

13.8%

Attrition rate (2023)

40.4%

Employment in Agriculture (2022)

30.6%

Employment in Industry (2022)

35.8%

Employment in Services (2022)

Economic profile​

Vietnam ranks as the

0 th

-largest economy in the world

US$ 433.7B

GDP (2023)

US$ 4,320

GDP per capita (2023)

US$ 30B

Digital economy GMV (2023)

US$ 15.7B

ICT market size (2023)

97%

Percentage of SMEs (2023)

US$ 529M

Total capital invested in startups (2023)

A rising economy in Southeast Asia

FDI inflows

Vietnam's foreign direct investment attracted nearly US$ 36.61 billion by 2023

Export turnovers

Vietnam's export turnovers reached US$ 354.7 billion by 2023

Newly-established businesses

In 2023, there were 159,294 newly-established businesses in Vietnam

US$ 36.6B

FDI Inflow (2023)

Leading FDI sectors

Manufacturing and processing

64.2%

Real estate

12.7%

Electricity, gas, steam and air conditioning supply​

6.5%​

Financial, banking & insurance​

4.3%

Science and technology

3.5%

US$ 354.7B

Export turnovers​ (2023)

Top exports

Electronic goods, computers and their parts​

16.2%

Phones all of kinds and their parts

15%

Machinery, instrument, accessory

12.2%

Textiles and garments

9.4%

Footwear

5.7%

159,294

Number of newly-established businesses (2023)

Top economic activities

Wholesale and retail trade, repair of vehicles

39%

Manufacturing and processing

11.8%

Construction

10.8%

Professional Activities (Technology; Consulting, Design; Advertising,...)

8%

Support Services (Employment Services; Tourism; Rental,...)

5.9%

By region

Southeast

42.7%

Red River Delta

31%

North Central Coast and Central Coast

11.7%

Mekong Delta

7.1%

Northern Midlands and Mountains

4.9%

Central Highlands

2.5%

Doing business in Vietnam

Opportunities & challenges

Opportunities

• Low cost to set up a business: around US$ 20,000

•  Robust tourism, agriculture and manufacturing sectors

•  Stable political system

•  Fast growing economy

•  Large labour pool and low labour costs

Challenges

•  Legal hurdles and grey areas of Vietnamese law

•  Ineffective intellectual property enforcement system

•  Inadequate infrastructure

•  Cumbersome tax system

•  Shortage in high-skilled technical labours

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