VietNamNet Bridge – Nam has made achievements and progress in boosting up industrialization and modernization after 25 years of pursuing the “Doi moi” cause.

Escaping from slackness, recession

In the first period from 1986-1990, the nation’s gross domestic product (GDP) grew 4.4% per year. Growth rate of agricultural and industrial production averaged 3.8-4% per year and 7.4% per year, respectively.

In this period, Viet Nam’s export turnover increased 28% per year. These successes were attributed to the implementation of target programs on food, products and exports. The country succeeded in developing the economy and curbing inflation.

The nation continued its success through to the next period from 1990-1995. Annual average GDP was 8.2%. Agriculture and industry enjoyed annual growth rates of 4.5% and 13.3%, respectively. The service sector expanded 12% per year. Total food produced in five years from 1991-1995 was 125.4 million tons, up 27% compared to the 1986-1990 period.  

Crucial economic developments

Between 1995 and 2000, the nation’s average GDP was estimated at 7%, with the growth rate in the agriculture-forestry-aquaculture sector being 4.1%, the industry and construction sector, 10.5% and the service sector, 5.2%. GDP in 2000 doubled the 1990 figure.

After the Socio-economic development strategy for 2001-2010 and the 2001-2005 five- year plan were launched, GDP rose 7.5% on average annually. The agricultural, industrial, construction and service sectors saw their growth rates increasing by 3.8%, 10.2% and 7%, respectively.

Total GDP in 2005 reached VND 837.8 trillion, doubling the figure in 1995. GDP per capita was US$640.

Once importing around 50,000 to one million tons of food a year, Viet Nam became the second largest exporter of rice, coffee and cashew in 2005.

The economic growth rate in 2005-2010 maintained at 7% a year. Total FDI was US$45 billion, exceeding 77% of the plan. Newly-registered and added capital totalled US$150 billion, 2.7 times higher than the plan and seven times higher than the 2001-2005 period.

Total ODA committed for Viet Nam surpassed US$31 billion, 1.5 times higher than the plan and ODA disbursement was US$13.8 billion, up 16%. GDP in 2010 valued at US$101.6 billion, 3.26 times higher than 2000's and GDP per capita was US$1.168.

At the Consultative Group Meeting of Donor for Viet Nam held in December 2010, Minister of Planning and Investment Vo Hong Phuc stressed that Viet Nam has shifted from a low-income country to a middle-income country.

Overcoming obstacles of global economic crisis

According to the International Monetary Fund (IMF), the global economic growth only stood at 4% in 2011 while Vietnamese economy expanded 5.89%, which was evaluated as higher than other nations in the region.

Over 20 years from 1991-2011, the nation’s GDP growth rate reached 7.34% per year with the economic scale in 2011 quadruplicated that in 1990 and 2.1 times greater than in 2000.

In 2012, GDP attained US$155.3 billion, up 5.03%. Agriculture-forestry-aquaculture production inched up by 3.4% and industrial production rose 4.8%.

Viet Nam gained US$100 billion for export turnover, up 18.3%.

As of October 25, 2012, Viet Nam exported 6 million tons of rice, becoming the largest rice exporter in the world.

From 1988 to July 2012, total registered FDI was estimated at US$236 billion, of which more than US$96.6 billion were disbursed.

Between 1993 and 2012, total ODA commitment and disbursement were US$80 billion and US$35 billion, respectively.

Source: VGP