TREND ANALYSIS ON

BANGLADESH & VIETNAM

Submitted to: Dr. Md. Khaled Saifullah

Course: ECN202

Section: 07

Date: 12/08/2022

Shah Mohammad Ibrahim 1920921

Arpita Adhikary 1810650

Md. Ashikul Islam 1920455

Israt Jahan 1920666

Sadaf Sumdani Nirvik 1930675

 TREND ANALYSIS ON BANGLADESH & VIETNAM

Table of Contents

Introduction to Both Countries Economy ..................................................................................................... 2

Bangladesh’s Economy ............................................................................................................................. 2
Vietnam’ Economy ................................................................................................................................... 3
Trend Analysis .............................................................................................................................................. 4
GDP Current US$ ..................................................................................................................................... 4
Inflation ..................................................................................................................................................... 5
Total Unemployment (Model ILO Estimate)............................................................................................ 6
Trade ......................................................................................................................................................... 7
Broad Growth Money ............................................................................................................................... 8
Reference ...................................................................................................................................................... 9

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Introduction to Both Countries Economy

Bangladesh’s Economy

Bangladesh has an impressive record of growth and development. It has been among the fastest
growing economies in the world over the recent years backed by a strong ready-made garment
(RMG) exports and remittances. Many countries around the world acknowledged Bangladesh’s
strong economic recovery from the COVID-19. Bangladesh tells the world a very remarkable story
of poverty reduction and development, from being one of the poorest nations in 1971, then
reaching lower-middle income status in 2015. Poverty declined from 43.5 percent in 1991 to 14.3
percent in 2016.

However, our growth faces new challenges following increasing global price level because of the
situation created by the Russia-Ukraine war. To achieve our vision of attaining upper middle-
income status by 2031, we need to create jobs and employment opportunities through a competitive
business environment, increased human capital and skilled labor force. Other development
priorities include diversifying exports beyond the RMG sector; deepening the financial sector.

Since the country’s independence, the World Bank has been a longstanding partner of Bangladesh.
Since then, the World Bank through its lending arm “The International Development Association
(IDA)” has committed more than $35 billion credits to Bangladesh. Currently, Bangladesh is the
largest IDA recipient country. The World Bank has also been the largest external funder of
Bangladesh, providing over a quarter of all foreign aid to the country.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Vietnam’ Economy

Vietnam's economy has shown resilient to trade disputes and slower development in China's
neighbor and one of the world's fastest-growing nations. The transition in workforce from
agricultural to industries and construction, non-public development, a healthy tourism industry,
greater earnings, and rapid urbanization are all contributing factors to the economy's quicker speed.
The economy of Vietnam is heavily dependent on the tourism and telecommunications sectors as
well as large state-owned businesses including textiles, food, furniture, plastics, and paper.
Through 214 operations, the Bank had delivered Approximately usd25.27 billion in grant, loans
and grants, and loans to Vietnam as of April 14, 2022. There are 31 active projects in Vietnam's
current portfolio, with a total net expenditure of $5.72 billion USD. Additionally, with 28 projects
now underway, Vietnam benefits from a broad and comprehensive range of professional services
and analytics (ASA).

World Bank Group has collaborated with Vietnam on a number of fronts of the nationwide
response plan since COVID-19 struck the nation in early 2020, from medical crisis response to
creating a resilient recovery.

In a remote area in central Vietnam, the Sustainable Energy the trunk Son Power Station assisted
in the construction of a 260 megawatts matrix hydro facility. As it has been in operation since
2017, the facility has produced 1 billion kilowatt-hours of power yearly at a cost per unit that is
less than coal or other sources of renewable power. Comparing the hydro plant to a thermal plant
that generated the same amount of power, the hydro plant decreased GHG emissions by around
one million tons. The project enhanced the quality of the region's overall energy supply while also
increasing local power access from 30% in 2015 to 97% in 2019.

All of these facilities managed social and environmental risks in accordance with international best
practices, creating new standards for the sector in Vietnam. Nature and Natural Resources the
World Bank has made a significant contribution to the environmental issues and green growth
agenda through all the Changing Climate and Green Overall Growth Financing Project. The
initiative enhanced cross-sector coastal planning and mainstreamed climate change into public
spending in a number of significant industries.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Trend Analysis

GDP Current US$

GDP Current US$

Bangladesh Vietnam

4.5E+11
4E+11
3.5E+11
3E+11
2.5E+11
2E+11
1.5E+11
1E+11
5E+10
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

The growth rate of Bangladesh was falling behind in 2012-2015. It bounced back in 2016 and still
captured the rate till 2021. Bangladesh suffered to gain its position for GDP. Vietnam's GDP was
high due to high rate of import and export. From 2016 to 2021 they failed to hold their position.
Moreover, drastically Vietnam has seen loss in GDP. From starting Vietnam seen some good
results. While Bangladesh was starting to gain GDP, Vietnam failed to set up its own strategy.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Inflation

Inflation (Annual %)
Bangladesh Vietnam

10
9
8
7
6
5
4
3
2
1
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

In this case Vietnam's inflation rate has massively changed. Vietnam inflation rate was highest in
2012 which is 9.09. but after that the rate started to decrease from 2012 to 2015. Which comes in
at 0.63. On the other side Bangladesh's inflation rate is somewhat stable. According to graph
Bangladesh inflation rate was consistently normal from 2012 to 2022. It went uprising to down in
a few years. Vietnam's inflation rate is totally unstable compared to Bangladesh. Vietnam was
successful in lowering inflation in recent times.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Total Unemployment (Model ILO Estimate)

Total Unemployment (Modeled ILO Estimate)

Bangladesh Vietnam

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

There has been a decrease in unemployment in Vietnam. While this is happening, the rate in
Bangladesh has been rising over time. Furthermore addition, Bangladesh's unemployment rate has
been unchanged since 2012-2019, in 2020- 2021 unemployment rate increased significantly. On
the Vietnam side unemployment rate is respectively low compared to Bangladesh. According to
the report Vietnam's unemployment rate suddenly increase in 2015-2017 and in 2019-2021. Before
that it was stable in 2012-2014. Whereas, Bangladesh faced massive hit in unemployment rate
from 2012-2019 in 2020-2021 it gained.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Trade

Net Trade in Goods and Services (Current US$)

Bangladesh Vietnam

3E+10

2E+10

1E+10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

-1E+10

-2E+10

-3E+10

-4E+10

By analyzing the graph, it shows from 2012 to 2021 Bangladesh faced huge loss in import and
export. Apparently, it gained each year and impacted on Bangladesh's GDP. In 2021 it increased
in huge number. However, Vietnam was flourishing with positive signs of growth in import and
also in export. It started well in 2012 and fell 2013 but again it grew in 2014. Moreover, Vietnam
never saw downside or decrease in their import export lineup. According to the chart it is growing
and somewhat few times decreasing unlike Bangladesh, which is already in deep crisis. This will
create a huge mess for the country. For surely, Bangladesh needs to bounce back from this debacle.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Broad Growth Money

Broad Money Growth (Annual %)

Bangladesh Vietnam

30

25

20

15

10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

From this graph we can see that starting from 2012 to 2020 Vietnam had more broad money growth
than Bangladesh. But in 2015 Vietnam registered their lowest growth and difference between
Bangladesh and Vietnam was close, but still Vietnam was ahead. In this graph we can also see that
Vietnams broad money growth fluctuating more, Although Bangladesh lacking behind, but the
fluctuation was not that much of crazy in compared to Vietnam.

So, in the end we must come up with a final decision and from this data and graph Vietnam is the
winner or the more successful than Bangladesh.

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 TREND ANALYSIS ON BANGLADESH & VIETNAM

Reference

Data for Bangladesh, Vietnam | Data. (2022). The World Bank.

https://data.worldbank.org/?locations=BD-VN

Overview. (2022, April 11). World Bank.

https://www.worldbank.org/en/country/bangladesh/overview

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