A Brief Overview of Where the Vietnamese Economy Is Heading

The economic situation in Vietnam has improved substantially in the past few years. In the early 2000s, Vietnamese economic performance was abysmal and many experts predicted that the country would never recover from its catastrophic decade of loss over a decade earlier. However, as a result of sound macroeconomic policies adopted over the past few years and a focus on value-added production over primary commodities, the economy has been accelerating towards a more modern and balanced model. In fact, per a reliable brokers, many financial sectors of the country are gradually improving, including CFD trading in Vietnam. The results have been encouraging and we are now seeing strong signs of transformation in several key areas. These transformations will take time to unfold but it is hoped that they will benefit all parties involved. In this article, we take you through an overview of the current state of play with regards to the Vietnamese economy. We discuss potential pitfalls as well as some key indicators for growth over the next few years.

The Vietnamese economy grew by an average of 6.8% between 2004 and 2006. In the same period, its population grew by an average of 5.4%. As a result, the country’s GDP per capita increased by about 3% during this period. This growth was almost entirely driven by an increase in productivity in the manufacturing sector, which together with stronger foreign demand, boosted total GDP by about 6%.

Although the economy was beginning to establish a more modern and balanced model in 2006, it is worth reflecting on some of the potential pitfalls that may confront the Vietnamese economy in the years ahead. The first potential problem is a decline in demand due to a decline in industrial production due to the impacts of the Deepwater Horizon oil spill (15% of the country’s oil production was located in the Gulf of Mexico) and a decline in tourist demand, which was mainly driven by the effects of the disruption caused by the earthquakes in central and northern Vietnam in January and February 2007.

The following are some of the key indicators for the Vietnamese economy as they stand today. 

Real GDP. This is the total value of goods and services produced within the country during the period in question. In the past five years, this has grown by an average of 6.2% a year. 

GDP per capita. In this, the goods and services produced within the country are divided by the total population. In the past five years, this has grown by an average of 3.2% a year. 

Employment. This is the number of people currently employed within the country. In the past five years, this has grown by an average of 5.8% a year. 

Inflation. In the past five years, the average inflation rate in Vietnam was 3.5%. In this period, the average in the rest of the world was 3.2%.

The Vietnamese economy is now showing signs of transformation after a decade of recession and trade misadventure. Another indicator is the rise of CFD trading in Vietnam. Any CFD broker or trader will tell you that the country is experiencing exponential growth in the CFD trading sector. The country is now moving towards a more modern and balanced model with a focus on value added production over primary commodities. In order to sustain this transformation, the economy requires strong and reliable government policy. The key to this is having a well-functioning, competitive and open market economy. The Vietnamese economy is now showing signs of transformation after a decade of recession and trade misadventure. The country is now moving towards a more modern and balanced model with a focus on value added production over primary commodities. In order to sustain this transformation, the economy requires strong and reliable government policy. The key to this is having a well-functioning, competitive and open market economy.