The hydropower plant reduced greenhouse gas emissions by approximately 1 million tons compared to a thermal plant supplying the same volume of electricity.The project increased the percentage of the local population with access to electricity from 30 percent in 2015 to 97 percent in 2019 – while contributing to improved quality of electricity supply in the broader region. According to the 2019 Population Census Report, 55.5 percent of the population is under 35 years of age, with a life expectancy of 76 years, the highest among countries in the region at similar income levels. Vietnam recorded decade-low GDP growth of 1.8% in the first half of this year, and expansion is forecast at just 2% to 2.5% for 2020 overall. But the population is rapidly aging. This will create challenges for continued growth of modern infrastructure services required for the next phase of growth. Improving the efficiency and integrity of the public sector is a priority for the World Bank in Vietnam. The Mekong Delta Region Urban Upgrading Project has turned low-income, low-lying areas into greener urban spaces in six cities of the Mekong Delta Region. In rural Vietnam, all too many people – especially children – live without sanitation. Between 2012 and 2018, the percentage of industrial zones compliant with wastewater treatment regulations increased from less than 30 percent to 72 percent. The quality of preschool instruction improved through the introduction of a child-centered learning approach for 250,000 early childhood education teachers. Poverty rates declined sharply from over 70 percent to below 6 percent (US$3.2/day PPP). Given its deep integration with the global economy, the Vietnamese economy  has been hit by the ongoing COVID-19 pandemic, but has shown remarkable resilience. Vietnam’s human capital index (HCI) stands at 0.69, meaning a child born in Vietnam today will be 69 percent as productive when she grows up as she could be if she enjoyed complete education and full health. The current World Bank Group Country Partnership Framework (CPF) for Vietnam guides the Bank Group's engagements in the country from 2018 to 2022. Vietnams growth is projected to moderate to 6.6 percent in 2019, driven by credit tightening, slower private consumption and weaker external demand. The Vietnam Industrial Pollution Management Project has significantly improved compliance with industrial wastewater treatment regulations in four of the most industrialized provinces in Vietnam. The project also assisted 13,000 fishers in adopting good aquaculture practices with the introduction of new eco-friendly technologies, while helping improve the biosecurity infrastructure in which they operate. The Key Drivers of Growth in Vietnam Interestingly, one of Vietnam’s most established economic drivers is trade, with the country known as a prominent exporter of goods to nations across the globe. Perhaps it is relevant to say that in 2020, Vietnam is an exception by continuing to show its role as the center of trade flows. Vietnam’s universal health coverage index is at 73—higher than regional and global averages—with 87 percent of the population covered. In addition, about 1.4 million people in 203 communes gained access to commune-wide sanitation. Vietnam’s GDP is … Linked to this is the issue of marine plastics. The guideline to develop a multi-sector economy has been carried out effectively. Over the past 30 years, the provision of basic services has improved significantly. It confirmed the relevance of the current CPF, aligned with the government of Vietnam’s development objectives and demand for WBG support. The Basic Statistics brochure presents data on selected social, economic, and SDG indicators such as population, poverty, annual growth rate of gross domestic product, inflation, and government finance for economies in Asia and the Pacific. The World Bank has worked closely with Vietnam to address the last miles in poverty eradication as approximately 8 million of Vietnamese people still lived with less than US$3.2 per day in 2018. Vietnam’s economy is set to grow 6.6 percent in 2021 on the back of successful control of COVID-19 infections, strong performance by export-oriented manufacturing and robust recovery in domestic demand. In February 2019, the Bank and OOG conducted a readiness assessment to ascertain the potential for digital government development in Vietnam, leading to the launch of the National Public Services Portal in December 2019 and E-Cabinet in June 2019. For 2021, the government is targeting economic growth at 6.5 percent. Economy | March 31st 2021 Vietnam’s growth subdued in Q1 2021. Despite a global economic crisis and likely recession in some of its neighboring countries, Vietnam aims for an economic growth of 5% this year. The program also significantly strengthened institutional mechanisms for WSS monitoring, and evaluation processes within the implementing agencies of participating provinces. Vietnam’s rapid growth and industrialization have had detrimental impacts on the environment and natural assets. Vietnam's gross domestic product advanced by 4.48 percent year-on-year in the fourth quarter of 2020, accelerating from a marginally revised 2.69 percent growth in the previous period, as the economy gradually returned to normal conditions, after loosening the lockdown measures to contain the spread of the coronavirus, the preliminary estimate showed. However, in recent years, Vietnam’s physical capital investment as a percentage of GDP has been among the lowest in the ASEAN region. In addition, 19 new small hydropower plants were built with a total capacity of 320MW, which supplied an annual volume of 1,260GWh. Access of households to infrastructure services has increased dramatically. Between 2013 and 2019, more than 1 million people had their water supply connected to sustainable water systems, while 400,000 new functioning water supply connections were built. Vietnam has made great strides in reducing poverty and improving quality of life for millions. In addition, Vietnam benefits from a large and diverse portfolio of Advisory Services and Analytics (ASA), with 34 currently active tasks. The World Bank supports Vietnam’s efforts to provide quality, afforable health care services for all citizens. To learn more about cookies, click here. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Ninety percent of global marine plastic pollution is estimated to come from just 10 in-land rivers, and the Mekong river is one of them. It was one of the few countries in the world to do so, but the crisis also left a lasting impact on households, with with 45 percent of households reporting lower household income in January 2021 than in January 2020. In the northern part of Vietnam, 13.7 million people—many of them from remote areas—have better access to quality healthcare. As of 2016, 99 percent of the population uses electricity as their main source of lighting, up from just 14 percent in 1993. A grant from the Pandemic Emergency Financing Facility, helped ramp up testing capacity for 84 laboratories nationwide, cutting the turnaround time from 24-48 hours to 4-6 hours. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. 2.7% real GDP growth for Vietnam is much lower than 2019 growth of 7%. Earlier, the Bank conducted a ground-breaking study on conflict–of–interest issues in the context of growing interactions interactions between the public and private sectors. In the first half of this year, the economy advanced 1.91 percent from a year earlier. This is significant given that the number of industrial zones has increased by 26.4 percent. The Vietnam Renewable Energy Development Project supported some of the first large-scale private-sector led deployments of renewable energy into Vietnam’s power mix, which has significantly expanded today, accounting for nearly 10 percent of Vietnam’s power generation capacity. Government spending and debt remained in check and bank capital rules were strengthened. Its population reached 96.5 million in 2019 (up from about 60 million in 1986) and is expected to expand to 120 million by 2050. The total quantifiable benefits are estimated at approximately US$724 million in terms of saving in healthcare costs, productive time, flood control damage, and increased land value. Demand for water continues to increase, while water productivity is low, about 12 percent of global benchmarks. As of March 22, 2021, the Bank has provided US$24.94 billion in grants, credits, and concessional loans to Vietnam through 209 operations. Over the past two decades, Vietnam has emerged as the fastest growing per-capita greenhouse gas emitters in the world – growing at about 5 percent annually. The project helped raise the living standards of ethnic minorities by improving their access to productive infrastructure, building capacity of local governments and communities, and promoting market linkages and business innovations. The plant has also helped mitigate flood risks in downstream communities. Between 2012 and 2018, the project supported 40 coastal districts and 257 coastal communes to shift from fragmented sectoral planning to an integrated spatial planning for co-management of fisheries. Promote and stimulate low carbon energy generation. The IMF expects the country’s growth to slow to 2.7% this year but expects a recovery to 7% for 2021. Q2 2020 Vietnam economy grew by 0.36% year on year (H1 expansion of 1.81% year on year). Despite rising trade tensions and volatility in emerging economies throughout 2018, Vietnam’s economy saw broad-based growth and low inflation. Vietnam Manufacturing PMI Rises to 27-Month High, Vietnam Consumer Prices Fall for 1st Time Since 2001, Vietnam Retail Sales Grow the Most in 9 Months, Vietnam Industrial Output Growth at 4-Month High, Fitch Revises Vietnam Credit Outlook to Positive, Bovespa Ends Lower, But Still Up for The Week, Costa Rica Inflation Rate Rises to 0.47% in March, Ukraine Inflation Rate Jumps to 1-1/2-Year High of 8.5%, Mozambique Inflation Rate at Over 3-Year High, Senegal February Inflation Rate Eases to 1.2% in March, Belgium Industrial Output Growth Flattens in February, Slovenia Industrial Output Falls 1.3% YoY in February. If you continue to navigate this website beyond this page, cookies will be placed on your browser. According to the ADB’s Asian Development Outlook 2020 report published on April 3, 2020, Vietnam’s economic growth will decline sharply to 4.8 percent in 2020 but bounce back up to 6.8 percent in 2021, provided the pandemic is contained. Waste generation in Vietnam is expected to double in less than 15 years. The project, which benefited 192,000 households and resulted in a 16-percent increase in incomes, provided good lessons for government to revise its poverty reduction policy and approach. Vietnam's gross domestic product advanced by 2.62 percent year-on-year in the third quarter of 2020, accelerating from a marginally revised 0.39 percent growth in the previous period, as the economy gradually returned to normal conditions, after loosening the lockdown measures to contain the spread of the coronavirus, the preliminary estimate showed. Between 2010 and 2020, the HCI value for Vietnam increased from 0.66 to 0.69, but there are some disparities within the country, especially for ethnic minorities. 2020 was a remarkably difficult year. “However, in a less likely scenario, when the spread of new Covid-19 variant turns more serious, domestic economic activities could be disrupted and keep the GDP growth even at a lower rate compared to last year,” warned the VEPR. The Results-Based Rural Water Supply and Sanitation Under the National Target Program has helped address one of the biggest challenges in rural Vietnam by investing in physical infrastructure and improving the legal framework for sustained access to water supply and sanitation (WSS) services. In addition, policies supported by this program helped promote the uptake of water-efficient irrigation practices and technologies – and prompted provinces to establish protection corridors for main water sources. Vietnam's gross domestic product advanced by 4.48 percent year-on-year in the first quarter of 2021, the same pace as in the previous period, as the economy gradually returned to normal conditions, after loosening the lockdown measures to contain the spread of the coronavirus, the preliminary estimate showed. Download historical data for 20 million indicators using your browser. Vietnam's existing portfolio consists of 37 active projects, with total net commitments of US$7.19 billion. This site uses cookies to optimize functionality and give you the best possible experience. Considering the first nine months of 2020, the economy expanded 2.12 percent from a year earlier. The Trading Economics Application Programming Interface (API) provides direct access to our data. The economy will grow by 5.3% in real terms in 2021—a slower pace relative to recent years, amid a gradual recovery from the coronavirus pandemic. A former Vietnamese government adviser claimed that the coronavirus outbreak will cause Vietnam’s economic growth rate to reduce around 1 percentage … This was unexpected given the COVID 19 lockdown. Vietnam: Mobile Technology Enables Faster and Safer Social Allowance Transfers for Ethnic Minorities, Internet of Things (IoT) helps Vietnamese farmers grow rice with less water, Internet of things (IoT) enables water-efficient rice cultivation in Vietnam. The country also battled one of the century’s worst droughts and just recently reeled from the worst floods in decades. Regardless of the impact of the COVID-19 pandemic, Vietnam is forecast to be one of the fastest-growing economies in Southeast Asia. The government is working to lower the environmental footprint of the country’s growth and effectively mitigate and adapt to climate change. Since 2018, the World Bank has supported Vietnam’s Office of the Government (OOG) in its efforts to build a digital government to ehance the efficiency and transparency of public service delivery. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Vietnam is experiencing rapid demographic and social change. At the same time, Vietnam is one of the most rapidly aging countries and the 65+ age group is expected to increase 2.5 times by 2050. Government estimates showed the Vietnamese economy growing 2.9% last year from a year ago, better than China's forecast-beating 2.3% growth during the same period. During the same period, the percentage of those with an on-site centralized effluent treatment plant increased from 60 percent to 98 percent. Yet, in the past six years the growth in services outpaced significantly all other sectors, and today services account for 37 percent of GDP. Economic and political reforms under Đổi Mới, launched in 1986, have spurred rapid economic growth, transforming what was then one of the world’s poorest nations into a lower middle-income country. Vietnam is forecast to have grown by 7% in 2018 and is one of the fastest-growing countries in the world. The expansion was driven mainly by agriculture, forestry and fisheries (3.16 percent); industry and construction (6.30 percent), manufacturing (9.45 percent) and service sector (3.34 percent). The Bank also provides strategic advice for Vietnam on how to prepare its workforce for future jobs. The GDP growth was driven mainly by agriculture, forestry and fisheries sectors (4.69 percent); industry and construction (5.60 percent) and service sector (4.29 percent). 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. March 12, 2021. A strong second quarter will be led by the industrial sector, which will push up annual growth rates in 2021. The project which closed in FY19 provided early-stage investment and technical support to build the requisite capacity and incentives among all stakeholders for scaled-up development. Electricity consumption has tripled over the past decade, growing faster than output. The GDP of Vietnam is $255 million, and the country has achieved GDP growth of 6.5% in recent years. World Bank national accounts data, and OECD National Accounts data files. The vast majority of Vietnam’s remaining poor – 86 percent –are ethnic minorities. Health outcomes have improved in tandem with rising living standards. Unsustainable exploitation of natural assets such as sand, fisheries, and timber could negatively affect prospects for long-term growth. There is an urgent need to accelerate the clean energy transition. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. The assessment was given by the International Monetary Fund (IMF) in its 2020 Article IV Consultation report with Vietnam, expecting the upward trend in economic growth would continue to 2022 as the country’s economic growth may reach 7.2%. Experts have been optimistic about Vietnam’s economic growth in 2021. The country, however, is now at a turning point where some of its traditional drivers of growth are gradually weakening,” said Ousmane Dione, World Bank Country Director for Vietnam. Vietnam's gross domestic product expanded by 0.36 percent year-on-year in the second quarter of 2020, following a 3.83 percent growth in the previous period, the preliminary estimate showed. Over the medium term, growth is projected to stay around 6.5 percent, as the impact of current cyclical uptick dissipates. Many ASA engagements leverage country-level partnerships and trust funds from development partners. FDI Data Shows Vietnam’s Steady Economic Growth Vietnam’s economy shows positive signs. In August 2020, the Vietnam's Open Budget Portal went live, making budget information for all government levels available for the public in one place. More. Poverty is expected to decline further, as labor market conditions remain favorable. The project has helped improve the living conditions of about 625,000 direct beneficiaries by upgrading basic infrastructure. Due to the coronavirus pandemic, also Vietnam’s growth is affected. The School Readiness Promotion Project, for example, helped increase access to full-day preschool to 84 percent of five-year-old children in 2015  from 66 percent in 2011. Vietnam’s economic growth over the past two decades has been steady and impressive, averaging 5.5% since 1990 and nearly 8% annually through the 1990’s. In Vietnam, industry and construction constitute the biggest sector of the economy (41 percent of total GDP). There is also a need to upgrade the skills of the workforce to create productive jobs at a large scale in the future. source: General Statistics Office of Vietnam 3Y 10Y 25Y Vietnam's gross domestic product grew by 6.88 percent year-on-year in the third quarter of 2018, compared with a 7.46 percent growth in the same period of the previous year. Looking forward, we estimate GDP Annual Growth Rate in Vietnam to stand at 6.50 in 12 months time. Vietnam’s development over the past 30 years has been remarkable. Between 2002 and 2018, GDP per capita increased by 2.7 times, reaching over US$2,700 in 2019, and more than 45 million people were lifted out of poverty. Vietnam’s economy that’s been on that track since the late 1980s probably grew around 6.3% last year for a lot of the same reasons and the government expects 6.8% in … Resilient Shores lays out a resilience strategy that can guide Vietnam through the decisive actions it must take to safeguard the prosperity of future generations from climate change and disaster risks. GDP Growth rate(%) 2020: 1.600: 2021: 6.700: 2022: 7.440: 2023: 7.240: 2024: 6.931: 2025: 6.630 Vietnam has minimised the economic damage from Covid-19 and is the only country in South East Asia on track for growth this year. Key strategies and plans to stimulate green growth and sustainable use of its natural assets are in place. Vietnam economic growth for 2018 was $245.21B, a 9.58% increase from 2017. Given the increasing reliance of fossil fuels, the power sector itself accounts for nearly two-thirds of the country’s greenhouse gas emissions. COVID-19 hit all socio-economic sectors throughout Vietnam. Economy | March 23rd 2021 UK-Vietnam trade agreement set to take effect in May. The Second Northern Mountains Poverty Reduction Project, implemented in six mountainous provinces in the poorest region of Vietnam during 2010-2018, exemplifies this productive partnership.