Vietnam Country Report Final 20210610 Eng

2 0 2 0 - 2 0 2 1
C O U N T R Y R E P O R T
Political Environment - Economic Environment - Socio-cultural Environment - Technological Environment
S i n c e r e l y i n t r o d u c e
Preface
Vietnam Country Report is an annual report published by VietnamCredit, a leading
business information provider and credit rating agency in Vietnam.
Vietnam Country Report 2021 is a comprehensive report based on statistics and
forecasts of Vietnam's economic, political, social and technological situation. This
report is formed under the PEST analysis method, focusing on four major fields of the
macroeconomy; Politics, Economics, Society and Technology. PEST provides both
an insightful view into Vietnam’s economy over time, particularly for 2020, and the
ability to forecast economic trends in 2021 and into the future.
The Country Report 2020 by VietnamCredit experts is expected to assist policy
makers, researchers, investors and large corporations in the decision-making
process.
Information in Vietnam Country Report 2021 is extracted from reputable data sources
such as General Statistics Office (GSO), General Department of Vietnam Customs,
Ministry of Finance, Ministry of Labor - Invalids and Social Affairs, Ministry of Science
& Technology, International Monetary Fund (IMF), Asian Development Bank (ADB),
World Bank (WB), etc.
The report includes: 125 graphs, tables and infographics together with analysis,
comment and synthesis of VietnamCredit expert’s opinions.
It is our great pleasure to present to you this Vietnam Country Report 2021.
Outline
01. Political Environment

Political characteristics | Government organizational structure | Legal system
02. Economic Environment

Global economic growth | Vietnam’s economic growth | CPI & Inflation | IIP |
Trade & Investment | Public Finance
03. Socio-cultural Environment

Major Social Indicators | Population | Income | Education | Labor Force | Income |
Consumption Behavior | Religion | Natural disasters
04. Technological Environment

State management of S&T | S&T Legal documents | Policies in support of S&T |
Expenditure on R&D | Human resources | Results of S&T activities
05. Appendix
Potential industries for investment and top companies
List of figures and tables
01. Political Environment
Image 1.1: Components of Vietnam’s political system
Image 1.2: Structure of Vietnam’s political system
Chart 1.1: Vietnam’s rule of law index 2020
Image 1.3: Global regulatory quality 2020
Table 1.1: Rankings of corruption control in 2019
Table 1.2: Rankings of political instability and threat of violence or terrorism
Image 1.4: Global Soft Power Index of Vietnam and several countries in 2021
Image 1.5: 7 pillars of soft power
Image 1.6: Vietnam Hierarchy of legislation
Table 1.3: Vietnam Hierarchy of legislation
Table 1.4: Key amendments of the laws coming into effect in 2021
Table 1.5: Forms of business in Vietnam
Table 1.6: Procedures, legal bases and costs for establishing an enterprise in
Vietnam
Table 1.7: Fee schedule applied to individuals and businesses in Vietnam
Table 1.8: Corporate income tax incentives for foreign investors
Table 1.9: Procedures for suspension, dissolution, bankruptcy, merger and
acquisition in Vietnam
02. Economic Environment

Chart 2.1: Increase of Covid-19 confirmed cases and deaths in 2020 in the world
Chart 2.2: Global Covid-19 situation dashboard
Chart 2.3: New weekly Covid-19 cases in 2020
Chart 2.4: Global economic growth, 2010-22
Chart 2.5: Growth of world merchandise trade volume, 2016-21
Chart 2.6: Growth of world merchandise trade volume: optimistic and
pessimistic scenarios (Index, 2011Q1=100)
Chart 2.7: Investment levels over 2020-22
Chart 2.8: Contribution to global GDP of the 20 largest economies in 2020
(at current prices)
Chart 2.9: Vietnam’s daily infections of Covid-19 in 2020
Chart 2.10: Real GDP growth rate of Vietnam compared to the region and the
world, 1980-2025
Chart 2.11: Gross domestic product per capita, current prices, 2010-25
Chart 2.12: GDP of ASEAN countries at current prices in 2020
Chart 2.13: GDP per capita of ASEAN countries at current prices in 2020
Chart 2.14: GDP growth rate in the period 2011-2020
Chart 2.15: Vietnam's economic structure , 2016-20
Chart 2.16: Vietnam's average CPI growth rate in 2020
Chart 2.17: Average core inflation (previous year = 100)
Chart 2.18: Vietnam's average inflation rate in 2020 (compared to the same period in 2019)
Chart 2.19: Index of Industrial Production compared to the previous years, 2016-20
Chart 2.20: Index of Industrial Production in 2020 compared with average month in 2015
Chart 2.21: Enterprise registration status every month of 2020
Chart 2.22: Retail sales of goods and services of years 2016-2020 (Trillion dong)
Table 2.1: Vietnam’s FTAs as of December 2020
Chart 2.23: Import-Export turnover and balance of trade in Vietnam, 2009-2020
Chart 2.24: Total import - export turnover of goods in 2020 (billion USD)
Chart 2.25: Major export markets in 2020 (billion USD)
Chart 2.26: Major export commodity groups in 2020
Chart 2.27: Structure of goods export in 2020 by sector
Chart 2.28: Structure of goods export in 2019 and 2020
Chart 2.29: Items with import turnover of over 10 billion dollars in 2020
Chart 2.30: Major import markets in 2020
Chart 2.31: Structure of services trade in 2020
Chart 3.32: Vietnam's Incremental Capital Output Ratio, 2016-20
Chart 3.33: Growth rate of realized social investment capital, 2016-20 (at current prices)
Chart 3.34: Structure of realized social investment capital, 2016-20
Table 2.2: Vietnam FDI Attraction in 2020
Chart 2.35: Five countries with the largest investment projects in Vietnam in 2020
Chart 2.36: State budget revenue and expenditure in 2020
Chart 2.37: State budget revenue structure in 2020
Chart 2.38: State budget expenditure structure in 2020
Chart 2.39: Public debt, Government debt and National external debt to GDP ratios, 2015-19
Chart 2.40: Central Government Debt, 2015-19
03. Socio-cultural Environment
Chart 3.1: Vietnam's population 2010 - 2020 (Unit: thousand people)
Chart 3.2: Population, population growth, and GDP per capita in Southeast Asia
2020
Chart 3.3: Population structure by gender and age, forecast to 2021
Chart 3.4: Population structure by age group (%)
Chart 3.5: Median age of Vietnamese people
Chart 3.6: Proportion of urban population (% of total population)
Chart 3.7: Total number of Vietnamese people working in foreign countries / the
number of destination countries
Chart 3.8: The number of Vietnamese workers in some countries in 2020
Chart 3.9: Vietnam Net Migration Rate 2015 - 2021 (per 1000 population)
Chart 3.10: Number of marriage cases between Vietnamese citizens and
foreigners in some countries in 2018
Chart 3.11: Number of Vietnamese children adopted by foreigners in 2012 - 2018
Chart 3.12: GDP per capita/year (USD)
Chart 3.13: Number of students in the school year 2020-2021 (thousand people)
Chart 3.14: Out-of-school proportion for boys and girls (%)
Chart 3.15: Human Development Index (HDI) of Vietnam 2010 - 2019
Chart 3.16: Labor force in working age by sex
Chart 3.17: Labor force aged 15 and over with diplomas/certificates (%)
Chart 3.18: Labor structure from 15 years old and above divided by economic
sectors in 2015 - 2020
Chart 3.19: Unemployment rate (% of total labor)
Table 3.1: Unemployment rate by education level (%)
Chart 3.20: Unemployment rate by sex (%)
Chart 3.21: Final consumption expenditure of households
Chart 3.22: Vietnam's Consumer Confidence Index
Chart 3.23: Major concerns of Vietnamese consumers Q2/2020
Chart 3.24: Number of religion followers in Vietnam (million people)
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04. Technological Environment
Diagram 4.1: State administrative system of S&T in Vietnam by level
Table 4.1: Laws S&T related activities
Table 4.2: Policies in support of S&T related activities
Image 4.1: R&D spending by country (in $PPP)
Chart 4.1: Expenditure on R&D by funding source over the years
Chart 4.2: Expenditure on R&D by economic sectors
Chart 4.3: State budget expenditure for S&T estimates over the years, 2010-21
Chart 4.4. R&D human resources by functions
Chart 4.5: Distribution of R&D human resources by economic sectors
Chart 4.6: R&D human resources by area of activity
Chart 4.7: International Science Rankings of Vietnam and several countries in 2020
Table 4.3: Rankings of 03 Vietnam’s universities in Asia region 2021
Table 4.4: List of UPM participating research universities 2020
Chart 4.11: Number of public eServices integrated to the National eService Portal
Chart 4.12: Number of visits (in thousands)
Chart 4.8: The explosion in e-commerce
Chart 4.9: Percentage of firms which started or increased the use of digital platforms by sector
Chart 4.10: Percentage of firms which started or increased the use of digital platforms by size
Table 4.5: GII rankings of VietNam 2018 - 2020
Chart 4.13: Score and rankings of Vietnam’s GII pillars in 2020
Chart 4.14: Number of Vietnam entities’ industrial property applications by subject matter, 2011-20
Chart 4.15: Top 10 provinces/cities with highest industrial property applications, 2011-20
Chart 4.16: Increase of Vietnam entities’ patent applications, 2011-20
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05. Appendix
Chart 5.1: Top 10 banks with highest profit before tax in 2020
Chart 5.2: Industrial zones, average rental rates and occupancy rates in HCMC and
Hanoi
Chart 5.3: The production of finished steel in 2020
Chart 5.4: The sale of finished steel in 2020
Chart 5.5: Growth of B2C e-Commerce, 2014-20
Chart 5.6: Individual shopping value estimate in a year, 2015-25
Chart 5.7: Vietnam’s seaport and logistics industry in 2020
Chart 5.8: Transportation by road (million tons)
Chart 5.9: Transportation by sea (million tons)
Table 5.1: Top 10 banks in 2020
Table 5.2: Top 10 industrial real estate companies in 2020
Table 5.3: Top 10 steel companies in 2020
Table 5.4: Top 10 e-commerce companies 2020
Table 5.5: Top 10 logistics companies in 2020
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Abbreviations
AEC ASEAN Economic Community

AI Artificial Intelligence
ASEAN Association of Southeast Asian Nations
BCC Business Cooperation Contract
BigData
CCI Consumer Confidence Index
EFTA European Free Trade Association
EMDEs Emerging Market and Developing Economies
EU European Union
EVFTA EU-Vietnam Free Trade Agreement
FDI Foreign Direct Investment
FMCG Fast Moving Consumer Goods
FTA Free Trade Agreement
GDP Gross Domestic Product
GII Global Innovation Index
ICOR Incremental Capital Output Ratio
ICT Information and Communications Technology
IMF International Monetary Fund
M&A Mergers and Acquisitions
R&D Research and Development
RCEP Regional Comprehensive Economic Partnership
UPM University Performance Metrics
VSA Vietnam Steel Association
WB World Bank
WEO World Economic Outlook
WHO World Health Organization
WIPO World Intellectual Property Organization
WJP World Justice Project
WTO World Trade Organization
2021 Country Report 2021- Political environment
I. Political environm
Political characteristics in Vietnam - Vietnam government organizational st
ment
tructure - Vietnam’s legal system
Political characteristics of Vietnam:

Vietnam is a single-party state led by the Communist Party of Vietnam (CPV)
Top political posts
Mr. NGUYEN PHU TRONG Mr. NGUYEN XUAN PHUC Mr. PHAM MINH CHINH Mr. VUONG DINH HUE
General Secretary President Prime Minister National Assembly Chairman
Vietnam’s political system consists of three components:
Communist Party of Vietnam;
Socialist state of Vietnam;
Socio-political organizations (Vietnam Fatherland Front, Ho Chi Minh Communist Youth Union,
Vietnam Women's Union, Vietnam General Confederation of Labor, Vietnam Farmer’s Union,
Vietnam Veterans Association)
Vietnam is a single-party country led by the Communist Party of Vietnam (CPV). The CPV gives strategic direction and
decides all major policy issues for the entire country. In recent years the CPV have prioritized economic development
and kept the leadership. Party and Government leaders of Vietnam are elected every five years at the National Party
Congress, then the National Assembly legitimizes the leadership positions of the Government from the leaders that the
CPV have chosen. The Politburo of the Communist Party was recently elected in January 2021. The Politburo makes
their decisions mainly on a collective basis.

Political characteristics of Vietnam:
The 13th National Party Congress
The 13th National Party Congress took place from January 25, 2021 to February 1, 2021. There were 1,587 delegates representing more than
5.1 million Communist Party members across Vietnam, who participated in the Congress.
The Communist Party Congress discussed the socio-economic development strategy for the past 10 years (2011-2020) and formulated the
next 10-year socio-economic development strategy (2021-2030).
The Party Congress elected 18 members of the Politburo and 200 members of the Central Committee, of which 180 are official members and
20 are alternate members. The set of leaders will hold the important roles in the apparatus of the Party and the Government of Vietnam. The
majority of them are ministers, chairmen or secretaries of provinces across the country.
The CPV affirms to continue the path of innovation and development of the private economy, setting a national development goal with a vision
to 2045. Specifically, to surpass the low-middle income level by 2025, to become a developing country with middle income by 2030 and a
high-income developed country by 2045. The target that Vietnam will "basically become an industrial country" by 2020, set by the CPV in
2006, was not achieved.
After having a resolution for the next 5 years, the CPV will lead and hold a parliamentary election to elect 500 deputies. The National Assembly
election date for the next 5-year term (2021-2026) is on May 23, 2021 and the elected National Assembly will hold its first session in July 2021.
Source: chinhphu.vn 18 Politburo members of 13th Party Central Committee
PARTY
CENTRAL
Politburo Member
NGUYEN PHU TRONG
General Secretary
Politburo Member
NGUYEN XUAN PHUC
President
Politburo Member
PHAM MINH CHINH
Head of the Central Organizing
Committee
COMMITTEE
Politburo Member Politburo Member Politburo Member Politburo Member Politburo Member
VUONG DINH HUE TRAN TUAN ANH NGUYEN HOA BINH LUONG CUONG DINH TIEN DUNG
Secretary of the City Minister of Industry and Trade Chief Justice of the Supreme Chairman of the General Political Minister of Finance
Party Committee People's Court DepartmentVietnamese People's Team
PHAN VAN GIANG TO LAM TRUONG THI MAI TRAN THANH MAN PHAM BINH MINH
Deputy Minister of Defence Minister of Public Security Head of the Central Committee for Chairman of the Central Committee Deputy Prime Minister
Mass Mobilization of the Front Vietnamese Fatherland
NGUYEN VAN NEN NGUYEN XUAN THANG VO VAN THUONG PHAN ĐINH TRAC TRAN CAM TU
Secretary of the City Party Committee Director of the National Academy of Head of the Central Mission Head of the Central Committee Chairman of the Central
Ho Chi Minh Politics Ho Chi Minh Department for Internal Affairs Inspection Committee
Political characteristics of Vietnam
COMPONENTS OF VIETNAM’S POLITICAL SYSTEM
Image 1.1: Components of Vietnam’s political system

Source: compiled by VietnamCredit
Vietnam is a country with high political stability. The Communist

Party has been in power for more than 70 years in the North and 46
years in the whole territory, although its name has changed from time to
time, but the leadership role remains unchanged.
Article 4 of the 2013 Constitution recognizes the leadership of the

Communist Party of Vietnam; however, Vietnam does not have a law on
political parties or on the "leadership of the Communist Party“.
The current Vietnamese political system includes these

components of political power; the Communist Party of
Vietnam, State Socialist Republic of Vietnam, and Socio-
am Socia
ietn lis
tR political organizations.
V
of e
pu
rty
bli
Com nist Pa
c of
Vietnam's leadership does not welcome political

dissent. Internal conflicts are strictly controlled.
Vietnam
Components of Vietnam’s
mu
political system
Protests are rare despite public disagreement on
several issues.
ns
oc
io- tio
pol niza
itical orga
Law on Demonstration in Vietnam has not
been passed yet. In several localities, social
order issues often arose from injustices in the
implementation of land law.
Several international human rights organizations

criticized the government for detaining prisoners of
conscience, but the authorities viewed these detainees as
criminals.
“The Communist Party of Vietnam - vanguard of the working people and the
whole nation - represents the interests of the working class and the nation,
adopts Marxism-Leninism and Hồ Chí Minh Thoughts as the firm ideological
foundations, serving as guidance for its activities, promoting the nation's
traditions, and absorbing other nations' essential ideas.”
Image 1.2: Structure of Vietnam’s political system

Source: chinhphu.vn
TOP POSTS IN THE STATE

APPARATUS STATE APPARATUS
LEGISLATIVE POWER EXECUTIVE POWER JUDICIARY POWER
(NATIONAL ASSEMBLY) (GOVERNMENT) (SUPREME COURT/PROCURACY)
ORDER OF ADMINISTRATIVE
UNITS CENTRAL
PROVINCE MUNICIPALITY
RURAL DISTRICT DISTRICT

LEVEL TOWN
PROVINCIAL CITY DISTRICT RURAL DISTRICT DISTRICT
LEVEL TOWN
COMMUNE TOWNSHIP WARD COMMUNE TOWNSHIP WARD COMMUNE
STATE APPARATUS DIAGRAM

NATIONAL ASSEMBLY
PRESIDENT
MINISTRIES / MINISTERIAL LEVEL

GOVERNMENT SUPREME SUPREME
AGENCIES PEOPLE’S COURT PROCURACY
DEPARTMENT
PROVINCIAL PROVINCIAL PROVINCIAL PROVINCIAL
PEOPLE’S COMMITTEE PEOPLE’S COUNCIL PEOPLE’S COURTS PROCURACY
CHAMBER DISTRICT DISTRICT DISTRICT DISTRICT

PEOPLE’S COMMITTEE PEOPLE’S COUNCIL PEOPLE’S COURTS PROCURACY
AGENCY
COMMUNE COMMUNE
PEOPLE’S COMMITTEE PEOPLE’S COUNCIL
Vietnam's rule of law index in 2020
Remained equal to the 0.49/1 figure of 2019, ranking 85th in the world and 11th in the region, slipping 2 places compared to 2019.
The rule of law index issued by the World Justice Project (WJP) aims to evaluate the rule of law
through eight factors: Government Power; Absence of Corruption; Open Government;
Fundamental Rights; Order and Security; Regulatory Enforcement; Civil Justice and Criminal
Justice.
Chart 1.1: Vietnam’s rule of law index 2020

Source: World Justice Project
Vietnam’s rule of law index 2020

1
GOVERNMENT POWERS
1
8 2
2 ABSENCE OF CORRUPTION 0.45
0.46
3 OPEN GOVERNMENT 0.42
4 FUNDERMENTAL RIGHTS
7 0.46 0.46 3
5 ORDER AND SECURITY
6 REGULATORY ENFORCEMENT 0.45 0.46
7 CIVIL JUSTICE
6 4
8 CRIMINAL JUSTICE
0.77
7/8
5
According to the WJP, Vietnam's rule Security and order in Vietnam

of law score in 2020 remained the was rated the highest, reaching
same as 2019’s score of 0.49/1, a score of 0.77/1, ranking
ranking 11/15 regionally and elements of Vietnam’s index did not
85/128 44/128
reached 0.5/1, indicating that openness of
the Government about the right to informa-
tion access and the participation in state
management of the public remain below
average; in particular the absence of
globally, dropping 2 levels. corruption score was only 0.42/1.
The regulatory quality of Vietnam in 2019

reached 41.83/100 points, ranked 127th out of 214 countries and territories.
Image 1.3: Global regulatory quality 2020

Source: Worldwide Governance Indicators
Global REGULATORY QUALITY 2020
0-10th 10-25th 25-50th 50-75th 75-90th 90-100th No Data
According to data from the World The Regulatory Quality Index measures the
Bank's Worldwide Governance public's perception of government's ability to
Indicators in 2019, the quality of formulate policies that encourage private sector
Vietnam's legal regulations development.
reached 41.83/100 points, ranked
127/214
countries and territories, up 6
With such scores and ratings, the quality of
current regulations in Vietnam is considered to
still be below average. However, the situation
levels compared to 2018. The has been improved, indicated through the
score increased by 5.33/100 points increase of Vietnam’s score and ranking in the
and the ranking went up 6 places. Worldwide Governance Indicators rankings.
WorldwideGoverna ceIndicators
WorldwideGoverna ceIndicators
Worldwide Governance Indicators
The effectiveness of Vietnam's

Corruption control has improved recently but remains poor
Table 1.1: Rankings of corruption control in 2019

Nguồn: Worldwide Governance Indicators
Rankings of corruption controL

NO. COUNTRY SCORE
1 New Zealand 2.17
2 Singapore 2.16
3 Finland 2.15
4 Sweden 2.12
5 Luxembourg 2.11
6 Denmark 2.11
7 Norway 2.07
8 Netherlands 2.00
9 Switzerland 1.98
10 Liechtenstein 1.97
……………………………………..
138 Vietnam -0.51
139 Ethiopia -0.53
140 Sierra Leone -0.53
……………………………………..
209 South Sudan -1.77
The corruption control index measures the public's perception of the extent to which the
law is sanctioned against corrupt acts and various types of corruption, including the takeovers of
government by various interest groups. The scale for this index ranges from -2.5 (weak) to 2.5
(strong).
Data from World Bank shows that Vietnam only got -0.51 points for this index and ranked 130th
out of 209 countries worldwide, indicating that Vietnam remains a country with poor control of
corruption.
Vietnam’s politics is stable
And there is almost no violence
Political environment of Vietnam: Political instability
Table 1.2: Rankings of political instability and threat of violence or terrorism

Source: Worldwide Governance Indicators
Rankings of political instability and threat

NO. COUNTRY SCORE
1 Greenland 1.90
2 Iceland 1.66
3 Liechtenstein 1.63
4 Andorra 1.62
5 Monaco 1.59
6 Singapore 1.53
7 New Zealand 1.51
8 Cayman Islands 1.45
9 Anguilla 1.37
10 Luxembourg 1.36
……………………………………..
98 Vietnam 0.13
99 Puerto Rico 0.12
100 Albania 0.12
……………………………………..
211 Yemen, Rep. -2.77
From strong (1.5) to weak (-3), this indicator reflects the public's perception of the possibility that the
government is unstable or toppled by unconstitutional or violent means, including political motives and
terrorism.
With a score of 0.13 and ranking 98th out of more than 200 countries, the political situation in Vietnam is currently
quite stable and there is almost no violence.
The score of Vietnam’s

open governance is high, but the right to information is relatively low globally.
Vietnam’s open governance

World Germany Japan Thailand Vietnam
Open Government 0.52 0.79 0.68 0.51 0.46
Publicized laws and 0.44 0.75 0.74 0.44 0.54

government data
Right to information 0.51 0.73 0.62 0.45 0.35
Civic participation 0.57 0.86 0.67 0.53 0.42
Complaint mechanism 0.58 0.83 0.71 0.61 0.54
Source: Jacques Morisset, Worldbank Report – March 2021
According to the World Bank, on a scale of 0 to 1, we can see that the

Vietnamese Government is relatively open with a score of 0.46. The publicized
laws and government data score is 0.54, higher than Thailand and the world
average; however Vietnam’s right to information is low, scoring 0.35 points while
the world average is 0.51. Civic participation is below average at only 0.42
points.
Vietnam's soft power index
Went up by 3 places in 2020
The 2021 Global Soft Power Index issued by Brand Finance ranked Vietnam at 9th in Asia and 47th out
of 105 countries worldwide, up more than 3 places compared to the previous year. Vietnam's overall score
is 33.8/100.
Image 1.4: Global Soft Power Index of Vietnam and several countries in 2021
Source: Brand Finance Global Soft Power Index Report 2021
Global Soft Power Index

INDIA
36 SOUTH AFRICA
37 POLAND
38 35
MALAYSIA
3933
CZECH REPUBLIC
40
39
27 36
Score: 37.7 -3.9 Score: 37.2 +0.7 Score: 37.0 +0.4 Score: 36.9 -0.4 Score: 37.7 -3.9
ARGENTINA
41 KUWAIT
42 HUNGARY
43 45
MEXICO
4437
INDONESIA
45
41
40 NEW
Score: 36.1 +2.1 Score: 35.8 - Score: 34.7 +2.8 Score: 34.4 -1.3 Score: 34.3 +0.9
SLOVENIA
46 VIETNAM
47 MOROCCO
48 -
CROATIA
4943
JoRDAN
50
NEW
NEW 50
Score: 34.2 - Score: 33.8 +2.5 Score: 33.8 - Score: 33.7 +1.4 Score: 33.7 -
Brand Finance has conducted a survey of 75,000 people, including experts and citizens from
more than 100 countries, to evaluate the "soft power" of 105 countries around the world. The soft
power index of a country is synthesized from 4 criteria: the familiarity of national brand; overall
national reputation; seven soft power pillars (business & trade; governance; international relations;
culture and heritage; media and communication; education and science; people and values), and
Covid-19 response.
Image 1.5: 7 pillars of soft power

Source: Brand Finance Global Soft Power Index Report 2021
SOFT POWER
Organisations - Conflict Resolution -
Diplomatic Relations - International
Education & science

Crime rate- Security - Constitution
Literature - Music - Film - Gaming

international relations
Media & communication

Tourism - Sport - Food - Fine arts
Culture & heritage
Traditional Media - Social Media

Taxation - Trade - Investment
Infrastructure - Future growth
Economy - Business - Brands
BUSINESS & TRADE
Higher Education - Science

Rule of law - Human rights
International Climate action
People & values

Values - Character - Trust
governance
Technologies
Political elite
Marketing
Fashion
According to Brandfinance, this achievement is due to the supports of the

Government of Vietnam for enterprises in branding, economic development and
international integration, both as the Chairman of ASEAN and a non-permanent
member of the Security Council in 2020. The Covid-19 pandemic has been well
contained due to the effective response of the Government, resulting in a
"surprisingly low" death rate. However, whether Vietnam is left behind is an
issue that needs to be acknowledged. This is because, for a number of
countries in the world, effectiveness at containing the pandemic is referred to by
the number of people vaccinated, the quality of the vaccines and by being open
for business and travel; as opposed to "zoning, encircling and stamping out the
pandemic”, thus causing a lot of panic and economic damage.
Vietnam’s Legal system:

Legislative is the primary source of law
Legal system: Source of law and law implementation
The National Assembly is Vietnam’s law maker, while the Government

executes administrative work of the State in accordance with the law, and
Courts issue rulings of compliance with the law. These three agencies operate
under the leadership of the CPV. The development of laws is often initiated
and prepared by the executive power, with the National Assembly involved in
discussion and approval. Many major corruption cases have been discovered
over the past 5 years and the judiciary is suffering from work
overload.
International Treaties are also an important reference of legislation for

Vietnam’s legal document system. Normally, after an International Treaty is
ratified and enforced by the National Assembly, a number of detailed guide-
lines will be issued, and some laws will be adjusted to be in line with that Inter-
national Treaty. Vietnam increasingly participates in international treaties, so
the laws need to be adjusted gradually to be more consistent with international
treaties.
The Vietnamese legal system is gradually being promulgated but has not been
fully applied in practice. The application of the law is believed to be
inconsistent and loose. Moreover, the system of legal documents has not been
adjusted in time to catch up with the 4.0 revolution.
Laws to enforce sentences in Vietnam are still ineffective. Many judgments are
difficult to enact, leading to lawsuits or a situation where dispute resolution in
court is not the best solution. Many investors, businesses and credit insurance
companies have taken judicial measures to resolve disputes in Vietnam, but
Image 1.6: Vietnam Hierarchy of legislation
Vietnam Hierarchy of legislation
CONSTI-
TUTION
The Constitution is the document with
the highest legal effect. Despite being at
Law
the top, it is considered to have the least
influence in Vietnam.
decrees and resolutions
Circulars
other legal documents issued by

local governments
Documents under law, just as the
increasing size of the pyramid towards the
resolution - decision - directive of province - bottom, are higher in number and more
district - communce authorities
important to bureaucrats and the public.
Most ministries are responsible for proposing legal ideas and drafting laws. Some hold opinions
claiming that they have intention to create benefits for their ministry.
Several members of the National Assembly and various intellectuals have questioned the capacity
and objectivity of National Assembly members in the law-making process.
According to the Law on Promulgation of Legal Documents, there are 15

different types of legal documents in Vietnam, from the Constitution to the
Decisions by the commune-level People's Committee.
CONSTITUTIO
CODE by the National Assembly LAW b
LEGAL ORDER by the National Assembly RESOLUTIO

Standing Committee Sta
ORDER by the President
DECREE by the Government
DECISIO
RESOLUTION by the C
CIRCULAR CIRCULAR CIRCULA

by Chief Justice by the Head of the by Ministers and
of the SPC Supreme People’s of ministeria
Procuracy Level agenc
RESOLUTION
DECISION by
LEGAL DOCUMENTS by local g

RESOLUTION
DECISION by
RESOLUTION
DECISION by
On June 8, 2020, the law was amended, adding several resolutions and ministerial-level Circulars
and Resolutions, effective since January 1, 2021
Table 1.3: Vietnam Hierarchy of legislation

ON by the National Assembly
by the National Assembly RESOLUTION by the National Assembly

JOINT RESOLUTION
ON by the National Assembly between the National Assembly Standing Committee
anding Committee and the Vietnam Fatherland Front Committee
DECISION by the President
JOINT RESOLUTION between the Government and the Vietnam

Fatherland Front Committee
ON by the Prime Minister
Council of Judges of the Supreme People’s Court
AR JOINT CIRCULAR JOINT CIRCULAR DECISION

d Heads between the Chief Justice between Ministers, Heads by the State Audit
al - of the SPC and the Head of ministerial-level
agencies and the Chief
cies of the People’s Procuracy Justice of the SPC, the
Head of People’s Procuracy
N by the Provincial People’s Council
the Provincial People’s Committee
governments in special administrative - economic units

by the district - level People’s Council
the district People’s Committee

N by the commune- level People’s Council
the commune- level People’s Committee
Vietnam’s Legal system:

Laws coming into effect in 2021
Laws coming into effect on January 1, 2021

THE LABOR CODE
2019
Table 1.4: Key amendments of the laws coming into effect in 2021 (1)
laws co
NAME LAW
The Labor Code 2019 Law No: 45/2019/QH14

dated 20/11/2019
Law on Investment 2020 Law No. 61/2020/QH14

dated 17/6/2020
Law on Enterprises 2020 Law No. 59/2020/QH14

dated 17/6/2020
Law on Securities 2019 Law No: 54/2019/QH14

dated 26/11/2019
Amended Construction Law 2020 Law No: 62/2020/QH14

dated 17/06/2020
Law on Investment in Form of Public Law No: 64/2020/QH14,

Private Partnership dated 18/6/2020
LAW ON LAW ON LAW ON AMENDED LAW ON INVESTMENT
INVESTMENT ENTERPRISES SECURITIES CONTRUCTION LAW IN FORM OF PUBLIC PRIVATE PARTNERSHIP
2019 2020 2020

2020 2020
oming into effect in 2021

CHANGES
•There are only 2 types of labor contracts
•The employee can unilaterally terminate the labor contract without any reason
•The employer must bear the cost of opening an account if paying salary through the account
•Debt collection service is officially banned from 2021
•The number of business lines decreased to 227
•Supplementing special incentives and investment supports
•Announcing the List of business sectors with restricted market access for foreign investors
•There are only 4 cases where the Investor does not have to make a deposit to implement an
investment project
•Eliminating the regulation on notifying the seal sample to the business registration office
•Subjects do not have the right to establish and manage enterprises in Vietnam
•Shortening the notice time before temporarily closing a business
•Changing the concept of state-owned enterprises
•The contributed charter capital increases from at least 10 billion VND to 30 billion VND on the offering date
•Establishment and operation of Vietnam Securities Depository (VSD)
•Supplementing prohibited acts in securities and stock market activities
•A public company can offer additional shares to the public if it makes a profit
•Exemption of construction permits for 9 types of projects
•Shortening the time to issue a construction permit to 20 days
•Construction of houses in rural areas with 7 floors or more requires a permit
•Revising regulations on construction cost management
•New regulations on construction permits
•Narrow down investment fields by PPP method to only 5 areas
•No longer explicitly recognizes BT models
•Clear regulations on investor selection
Table 1.4: Key amendments of the laws coming into effect in 2021 (2)
laws c
NAME LAW
Youth Law 2020 Law No: 57/2020/QH14

dated 16/6/2020
Law on Judicial Expertise Law No: 56/2020/QH14
Law on Organization of the National Law No:65/2020/QH14

Assembly 2020 dated 19/06/2020
Law on Mediation and Dialogue at Court Law No: 58/2020/QH14

dated 16/06//2020
Law on Promulgation of Legal Law No:63/2020/QH14

Documents dated 18/06/2020
LAW ON JUDICAL LAW ON ORGANIZATION LAW ON MEDIATION LAW ON PROMULGATION
YOUTH LAW EXPERTISE OF THE NATIONAL ASSEMBLY AND DIALOGUE AT COURT OF LEGAL DOCUMENTS
2020 2020 2020 2020 2020
coming into effect in 2021

CHANGES
•Not specifying the rights and obligations of the youth because youths are citizens
•March of every year shall be Youth Month
•Defining clearly 7 principles to ensure the rights and obligations of the youth
•Youth policies of State
•Expanding the scope of judicial expertise
•Supplementing the issuance and collection of judicial assessor cards associated with the
appointment and dismissal of judicial assessors
•The Supreme People's Procuracy has an additional criminal technical examination room
•Facilitating the opening of a Judicial examination office
•The time limit for judicial expertise must not exceed 4 months
•Amending regulations on assessment conclusions more specifically
•National Assembly deputies must have Vietnamese nationality
•Increasing the number of active National Assembly deputies by 5%, aiming to reach at least 40% of the total
•Supplementing the principle of operation of the Standing Committee of the National Assembly to
operate according to the collective regime and decision by the majority
•Specific provisions regarding the conditions for appointing mediators
•Article 19 clearly stipulates 7 cases where mediation and dialogue are not conducted in court
•Information security issue
•Adding two types of legal documents:
•Joint Resolutions between the Standing Committee of the National Assembly and the Management
Board of Central Committee of Vietnamese Fatherland Front
•Joint Circulars between the Executive Judge of the People’s Supreme Court, the Chief Procurator of
the Supreme People’s Procuracy, the State Auditor General, Ministers, Heads of ministerial agencies
•Amending the regulations on the effective date of the legal representative office
•Expanding the authority to issue legal documents at district and commune levels
•No added administrative procedures when amending legal documents issued before July 1, 2016
Table 1.5: Forms of business in Vietnam (1)
Form of businesses Description

Multi-member A multiple-member limited liability company means an
limited liability enterprise that has 02 – 50 members that are organizations
companies or individuals. A member’s liability for the enterprise’s debts
Article 46, Law on and other liabilities shall be equal to the amount of capital
Enterprises 2020 that member contributed to the enterprise. A multiple-
member limited liability company has the status of a juridical
person and may issue bonds / private placement of bonds,
but must not issue shares except for equitization.
Single-member A single-member limited liability company is an enterprise

limited liability owned by a single organization or individual. The owner’s
companies liability for the company’s debts and other liabilities shall be
Article 74- Law on equal to the company’s charter capital. A single-member
Enterprises 2020 limited liability company has the status of a juridical person,
may issue bonds but must not issue shares except for
equitization.
State-owned State-owned enterprises shall be limited liability companies

enterprises or joint stock companies, including a) 100% of charter
Article 88 Law on capital of which is held by the State; b) Over 50% of charter
Enterprises 2020 capital or voting shares is held by the State. The
Government shall elaborate this Article.
Joint stock com- A joint stock company is an enterprise in which charter capital is divided
panies into units of equal value called shares. Shareholders can be organizations
Article 111 Law on and individuals; the minimum number of shareholders is 03; there is no
Enterprises 2020 limit on the maximum number of shareholders; a shareholder’s liability for
the company’s debts and liabilities is equal to the amount of capital
contributed to the company by the shareholder; shareholders may transfer
their shares to other persons; a joint stock company has the status of a
juridical person from the day on which the Certificate of Enterprise
Registration is issued and may issue shares, bonds and other kinds of
securities.
Partnerships A partnership is an enterprise in which there are least 02 partners that are
Article 177 Law on joint owners of the company and do business under the same name. There
Enterprises 2020 can be limited partners in addition to general partners: a general partner
shall be an individual whose liability for the company’s obligations is equal
to all of his/her assets; a limited partner can be an organization or an
individual whose liability for the company’s debts is equal to the promised
capital contribution. A partnership has the status of a juridical person but
must not issue any kind of securities.
Sole proprietor- A sole proprietorship is an enterprise owned by a single individual whose

ships liability for its entire operation is equal to his/her total assets. An individual
Article 188 Law on may only establish one sole proprietorship. A sole proprietorship must not
Enterprises 2020 contribute capital upon establishment or purchase shares or stakes of
partnerships, limited liability companies or joint stock companies.
Table 1.5: Forms of business in Vietnam (2)

Business A business group or corporation is a group of companies
groups and that are interrelated by ownership of shares/stakes or
corporations otherwise associated. A business group or corporation is
Article 194 Law on not an enterprise, is not a juridical person and registration of
Enterprises 2020 its establishment under this Law is not required. A business
group or corporation has a parent company, subsidiary
companies and other member companies. They have the
same rights and obligations of as those of independent
enterprises as prescribed by law.
Parent company A company is considered the parent company of another

and subsidiary company if: it holds more than 50% of charter capital or total
companies ordinary shares of the latter; has the right to directly or
Article 195 Law on indirectly designate most or all of the members of the Board
Enterprises 2020 of Directors and Director/General Director of the latter or the
right to decide revisions to the latter’s charter. A subsidiary
company must not contribute capital to or purchase shares
of the parent company. Subsidiary companies of the same
parent company with at least 65% state capital must not
contribute capital to or purchase shares of other enterprises
or to establish new enterprises as prescribed by this Law.
Business house- A business household owned by an individual, a group of individuals being

hold Vietnamese citizens from 18 years of age or older, have full civil capacity, or
Decree No. owned by a household may only register one business location, employ
01/2021/ND-CP fewer than 10 employees and take responsibility for the business operation
with all of their property. A business household is not regulated in Law on
Enterprises but in Decree 01-2021/NĐ-CP. Household businesses are
allowed to operate in various locations and to be postponed indefinite of
time. In general, the government does not encourage the development of
this business model, it is encouraged to transform into a company.
Branches A branch of an enterprise is its dependent unit which has some or all
Article 44 Law on functions of the enterprise, including an authorized representative. The
Enterprises 2020 business lines of a branch shall match those of the enterprise.
Representative A representative office of an enterprise is its dependent unit which acts as

offices the enterprise’s authorized representative, represents and protect the
Article 44 Law on enterprise’s interests. A representative office shall not do business.
Enterprises 2020
Business loca- A business location of an enterprise is the place at which specific business
tions operations are carried out.
Article 44 Law on
Enterprises 2020
Procedures to set up a business

In Vietnam it takes from 15-30 days at a cost of $85 - $180, depending
on the size of the business.
Table 1.6: Procedures, legal bases and costs for establishing an enterprise in Vietnam
Step Proceduress Legal Base Cost (USD)
1 Prepare company Decree No. 02/2021/ND-CP 10

profile Law on Enterprises 2020
2 Make a seal Law on Investment 2020 8
Article 43 Law on Enterprises 2020
3 Register the seal New law eliminates the regulation on N/A
notifying the seal sample to the business
registration office. The enterprise’s seals
can be physical or digital as prescribed
by e-transaction laws
4 Open an account Open at a bank and must be registered 15
with Department of Planning and
Investment
5 VAT invoice Circular 320/2016/TT-BTC
6 Disclose information Article 32 Law on Enterprises 2020 N/A
on company Decree 96/NĐ-CP
information portal
7 Pay excise tax Article 4 Decree 139/2016/NĐ-CP and 50 – 150/year
Circular 302/2014/TT-BTC
8 Register with local Law on Enterprises 2020 N/A
authorities and Decree No. 122/2020/NĐ-CP
insurance agencies
9 Complete the Law on Enterprises 2020 N/A
business registration
procedure
Market entry:
Steps to establish an FDI company
Forms of investment in Article 21, Law on Investment 2020:

Investment in establishment of a business entity
ARTICLE 21 Investment in the form of capital contribution or purchase of

shares or stakes
Execution of an investment project
Investment in the form of a business cooperation contract
New forms of investment and types of business entities

prescribed by the Government's regulations
According to Law on Investment 2020, the State tends to limit market access for FDI enterprises in some sectors. Specifically, in
Article 9 of the Law, the Government shall promulgate a list of business lines restricted to foreign investors, including:
Business lines not allowed in Business lines allowed in
market access market with conditions
Market access conditions including:
Holding of charter capital by the

foreign investor Investment method Scope of investment
in a business entity
Market entry:
Investment policy application times for project implementation.
Article 34 of the Law on Investment in 2020:

For investment guideline approval by the National
Assembly: 165 days, of which:
Within 15 days from the date on which the sufficient
ARTICAL 34 application is received, the Ministry of Planning and

Investment shall submit a report to the Prime Minister and
request establishment of a State Appraisal Council.
Within 90 days from the date of its establishment, the State

Appraisal Council shall organize appraisal of the
application and prepare an appraisal report including the
contents set out in Article 33 of this Law, then submit it to the
Government.
At least 60 days before the opening of the meeting of the

National Assembly, the Government shall prepare an
application for investment guideline approval and submit it to
the National Assembly’s agency presiding over validation.
For investment guideline approval by the Prime Minister:

58 days
For investment guideline approval by the Provincial People’s
Committees: 25 days
Despite regulations in law, the
implementation of projects can take a
For investment guideline approval by the Industrial Zone
lot more time and resources, Management Committee: 5 days
depending on the locality, the person For investment guideline approval by the Department of
in charge and the ‘lobbying’ ability of
planning and investment: 3 days
services agencies in applying for
No investment guideline approval required: enterprise works
investment certificates in case of
having to apply for an investment with the Industrial Zone Management Committee (15 days)
guideline approval. and the Department of planning and investment (3 days)
Taxes and fees:
Insurance premiums and trade union fees.
Table 1.7: Fee schedule applied to individuals and businesses in Vietnam
Fee schedule applied

Unemploy- Labor
Social Heath ment Accident Union Total
Insurance Insurance Insurance Insurance dues
(25%) (4.5%) (2%) (0.5%) (3%) (35%)
Employers 17% 3% 1% 0.5% 2% 23.5%
Employees 8% 1.5% 1% 1% 11.5%

0%
As in other countries, most

business and investment
activities in Vietnam will be
affected by taxes and fees.
The cost is considered
relatively high: total expenses
for social insurance, health
insurance, unemployment
insurance, occupational
accident insurance, trade
union fees and so on account
for 35% of total income. Of
this, employers must pay
23.5% and employees pay
11.5%.
at Vietn
xes th am
Ta ’
0
s
1
nt pa
y
er
e
o
p ris
es h a ve t
1. Business-license Tax
2. Profit Tax
3. Value Added Tax
4. Import - Export Tax
5. Personal Income Tax
6. Natural Resource Consumption Tax
7. Excise Tax
8. Land Use Tax
9. Environmental Protection Tax
10. Other fees and charges
Exported goods and services not entitled to VAT incentives (0%): Technology
and intellectual property transfer abroad; Reinsurance services to foreign coun-
tries; Credit granting services; Capital transfer; Derivative financial services; Post
and telecommunications services; 18 exported products specified in Clause 23,
Article 5 of the Law on Value-Added Tax.
Taxes Conditions Tax rate
Abated tax General services 5%
Goods 1%
Interests 5%
Royalties 10%
Corporate income tax 20%
Capital assignment profits tax 20%
(CAPT)
Value-added tax (VAT) General services 10%
Essential goods and services 5%
Exported goods and services 0%
Personal income tax Below VND 5 million 5%
From VND 5 to 10 million 10%
From VND 10 to below 18 million 15%
From VND 80 million 35%
)
INVESTMENT INCENTIVES
ACCORDING TO LAW ON INVESTMENT 2020
Article 15, Law on Investment 2020

According to Article 15, Law on Investment 2020, Vietnam has 4 forms of incentives
Corporate income tax incentives,

including application of a lower rate of
corporate income tax for a certain
period of time or throughout the
investment project execution;
ARTICLE 15 exemption from and reduction of tax

and other incentives prescribed by
the Law on Corporate Income Tax
Exemption from import tax on goods

imported to form fixed assets; raw
materials, supplies and components for
manufacturing purposes in accordance
with regulations of law on import and
export tax
Exemption from and reduction of land Accelerated depreciation, increasing

levy and land rents the deductible expenses upon
calculation of taxable income
The new law targets the amount of committed investment and the actual disbursement within 3
years, whilst concurrently offering strong incentives to several occupations that lean towards
more technological and greener impacts, environmental improvement and less labor
insensitivity.
INVESTMENT INCENTIVES ACCORDING TO LAW ON INVESTMENT 2020

Total committed Minimum capital disbursement in
investment capital the first 3 years (billion dong)
(billion dong)
14
Hi-tech activities; hi-tech ancillary prod- 3,000 1,000
ucts; research, manufacturing and
development of science and technology
business lines
products; new materials, new energy; IT
eligible for
investment products, software products, digital con-
incentives tents; agriculture products, forestry
products, afforestation and forest protec-
tion; collection, treatment, recycling or
re-use of waste; education
2
areas eligible for
Disadvantaged areas and extremely
disadvantaged areas; Industrial parks,
export-processing zones, hi-tech zones
6,000
billion
3,000 billion + 3,000
employees
investment incentives and economic zones
7
forms of investment
Assistance in development of infrastruc-
ture; training; credit; relocation; technol-
ogy transfer; information provision; R&D
30,000
billion
10,000 billion
assistance
The Government shall specify the list of Other The Government shall
Details
taxes, the types of taxes as well as the elaborate details
rates of tax exemption and reduction
Incentives for foreign investors
Table 1.8: Corporate income tax incentives for foreign investors

Corporate income tax inc

Exemption and reduction of CIT
Rate Term of Application
Exemption of CIT Reduction of CIT
15 years from the first year of

50% for no more
taxable income
10% 4 years than 9 following
years
15 years from the date of

registration
50% for no more

15 years from the first year of
20% 2 years than 4 following
taxable income
years
centives for foreign investors
Condition
- Incomes of enterprises from the operation of new investment projects in areas with exceptionally difficult
socio-economic conditions, economic zones and hi-tech parks
- Incomes of enterprises from the operation of new investment projects in the fields of scientific research and
technological development; high technology applications; production of composite, light, rare and precious
construction materials; production of renewable and clean energy and energy from waste disposal;
biotechnology development; environmental protection
- Incomes of enterprises from the operation of socialization activities in the fields of education - training,
vocational training, health care, culture, sports and environment
- Income of high-tech enterprises, agricultural enterprises applying high technology in accordance with the
Law on High Technologies
- Incomes of enterprises from the operation of new investment projects in areas with difficult socio-economic
conditions
- Incomes of enterprises from the operation of new investment projects in the field of high-class steel
production; production of energy-saving products,; manufacture of machines and equipment for agricultural,
forestry, fishery and salt production; production of irrigation equipment; production and refining of feeds for
cattle, poultry and aquatic animals, and developing traditional industries. From January 1, 2016, the incomes
of enterprises specified in this Clause are subject to the tax rate of 17%
- Incomes of enterprises from the operation of new investment projects in industrial parks, except industrial
parks in areas with favorable socio-economic conditions
Doing business in Vietnam:

Settlement of disputes
Article 14, Law on Investment 2020

specifies settlement of disputes over
business investment activities in
Vietnam
Disputes over business investment activities in

LAW ON Vietnam shall be settled through negotiation and
INVESTMENT conciliation. If the negotiation or conciliation fails, the
2020 dispute shall be settled by either an arbitration body
or a court. Every dispute shall be settled by one of
the following agencies/organizations:
VIETNAM’S VIETNAM’S FOREIGN INTERNATIONAL
COURT ARBITRATION ARBITRATION ARBITRATION

Body Body Body
AN ARBITRAL TRIBUNAL
ESTABLISHED BY THE PARTIES IN DISPUTE
Every dispute between a foreign investor and a regulatory agency over business
investment activities within Vietnam’s territory shall be settled by Vietnam’s arbitral
tribunal or Vietnam’s court, unless otherwise agreed under a contract or
prescribed by an international agreement to which the Socialist Republic of
Vietnam is a signatory.
We recommend that foreign investors use clear and specific language when
drafting contracts: dispute settlement by Vietnam’s arbitration body is the
preferred option due to a swift process and high security levels.
Table 1.9: Procedures for suspension, dissolution, bankruptcy, merger and acquisition in Vietnam
PROCEDURES IN VIETNAM
Type Time Cost (VND) Note
Suspension 3 days Free The temporary cessation of

operation must not exceed 2
consecutive years. Notifications
must be sent 15 days before
suspension.
The procedure is simple and

Dissolution 1-3 months 3-5 million quick if enterprises have fulfilled
their obligations. Normally takes
more time due to problems
related to taxes.
The Court mainly relies on the

Bankruptcy Depends on each Subject to creditors’ Law on Bankruptcy 2014 and
case, lasting 6-24 meeting and their Resolution of the Creditors'
months decisions Meeting to decide.
M&A As agreed by the According to the M&A activities are increasingly

parties Business Law and developing and making great
Tax Law contributions to Vietnam's eco-
. nomic transformation. M&A are
conducted by services agencies.
Vietnam’s business legal system is comprehensive, regulating almost every

area of business. Recently, the Government has been conveying a message
about transparency in governance and starting to remove privileges for certain
groups. However, this is an arduous process and will be difficult to fully resolve.
The amended Law on Investment 2020 introduces detailed procedures to ensure that there is no
overlap between areas that may lead to differing interpretations, resulting in the investors’ redemption.
The State continues to affirm to protect investment as well as introduce many incentives to encourage
investment, ensuring that those incentives remain effective for investors even when there are
regulatory changes.
Article 9 of the Law on Investment 2020 specifies that the investor's legal assets cannot be
nationalized or confiscated by administrative method. However, the State also faces several small
lawsuits over disputes with foreign investors.
2021 Country Report 2021- Economic Environment
II. Eco
onomic Environment
COVID-19 situation worldwide
Global economic growth
COVID-19 pandemic in Vietnam
Vietnam’s economic growth: Economic structure
Consumer Price Index and Inflation
Index of Industrial Production
Business registration activities
Retail sales of goods and services
Trade and Investment
Public Finance
The complicated development o

pandemic has caused severe impacts on global economic development
Statistics from the World Health Organization (WHO) showed that, as of March
2021, there had been more than 118 million confirmed cases of Covid-19, including
over 2.6 million deaths world-wide. The daily number of infections increased sharply
in Q4/2020 and have witnessed a downward trend since the beginning of 2021.
Chart 2.1: Increase of Covid-19 confirmed cases and deaths in 2020 in the world
Source: WHO
Increase of Covid-19 IN 2020
118,268,575
1M
Confirmed cases
500K
Mar 31 Jun30 Sep 30 Dec 31
2,624,677
20K
15K
Deaths
10K
5K
Mar 31 Jun30 Sep 30 Dec 31
According to World Bank (WB), the number of new daily confirmed cases in advanced
economies (United States, EU, Japan) dropped significantly in December 2020,
indicating the effectiveness of vaccination development and deployment in several
countries in this group. In developing countries and emerging markets (EMDEs), new
Covid-19 cases have been increasing due to several limitations in procurement and
distribution of vaccines: the situation is expected to improve in early 2021.
of the Covid-19
Chart 2.2: Global Covid-19 situation dashboard

Source: WB
Global Covid -19
400.000
Covid-19 cases
300.000
Chart 2.3: New weekly Covid-19 cases in 2020
200.000
Source: WB
100.000
Advanced economies
EMDEs 0
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12
The global economy

showed signs of recovery in early 2021, with development prospects dependent on the
evolution of the pandemic.
Note: shaded area

indicates forecasts
According to the WB, the pandemic has brought about one of the most severe
global economic recessions for the past 150 years, with the impact only exceeded
by the two World Wars and the Great Depression.
The global economy was estimated to shrink by 4.3% in 2020, with an approximate
loss of nearly USD 6,000 billion compared to the World Bank's forecasted
growth rate of 2.5% in early 2020. The Covid-19 pandemic has caused EMDEs'
average economic growth to drop 2.6% while having a more severe impact on
advanced countries, whose GDP plunged by a record 5.4% in 2020.
Chart 2.4: Global economic growth, 2010-22
Source: WB
Global economic growth

10
7.4
6.6
4.9 5.0
4.5 4.5
5.0 5
4.2 4.3 4.2
4.4
3.9
3.6
4.0
3.5
3.8
3.6
3.3
3.3
2.9
3.0
2.5
2.9
2.9
2.3
2.7
2.2
2.6
2.5
2.0
2.3
1.6 1.7 1.6

1.2 1.4
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
-2.6
-5
-4.3
-5.4
World Advanced economies EMDEs

-10
The global economy is expected to grow by 4%, possibly up to nearly 5% if the pandemic can be
effectively contained (WB). According to the IMF, growth may expand up to 5.5% in the
circumstance that vaccines will be widely deployed in most countries in the world. However, if the
pandemic continues to evolve unpredictably and the vaccine rollout process is not conducted
effectively, the global economy will have a much more subdued increase of 1.6% in 2021 and 2.5%
in 2022.
According to World Bank estimates, EMDEs’ economies could grow by 5% on average in 2021,
while advanced economies will witness a slower recovery with an expected growth of 3.3%.
World trade has growth

prospects if Covid-19 is well contained, but is projected to remain below its pre-pandemic pace.
Chart 2.5: Growth of world merchandise trade volume over years, 2016-21
Source: WTO Secretariat
Note: shaded area

indicates forecasts Growth of world merchandise trade
10
7.2
5
4.7
2.9
2.3
1.4
-0.1 0
-5
-9.2
-10
2015 2016 2017 2018 2019 2020 2021
The World Trade Organization (WTO) estimated that the volume of world
merchandise trade in 2021 decreased by 9.2% compared to 2019,
3.7 percentage points higher than their previous forecast in April 2020.
International trading is expected to increase by 7.2% in 2021, a rate that indi-

cates that world trade will be more likely to have a slow recovery instead of
rebounding to pre-pandemic levels.
Chart 2.6: Growth of world merchandise trade volume: optimistic and pessimistic scenarios (Index, 2011Q1=100)
Source: WTO Secretariat estimates
Growth of world merchandise trade

140
135
130
125
120
115
110
105
100
95
90
Q1/2011
Q3/2011
Q1/2012
Q3/2012
Q1/2013
Q3/2013
Q1/2014
Q3/2014
Q1/2015
Q3/2015
Q1/2016
Q3/2016
Q1/2017
Q3/2017
Q1/2018
Q3/2018
Q1/2019
Q3/2019
Q1/2020
Q3/2020
Q1/2021
Q3/2021
Optimistic Pessimistic Baseline Trend 2011-2018
WTO also calculated several risks and factors influencing trading activities in the medium-to-long
term.
In a positive scenario where Covid-19 is well contained, social distancing is loosened and economic
growth is not significantly influenced by the pandemic, merchandise trade will expand gradually
from Q1/2021.
By contrast, global trade will continue to plummet until Q3/2021 in a negative scenario where debt
burdens continue to increase, economic growth is slow, the unemployment rate continues to surge
and the vaccine rollout is delayed in several countries.
Three-quarters of global GDP

Is contributed by the world's 20 largest economies
Chart 2.7: Investment levels over 2020-22

Source: Haver Analytics; World Bank
Note: EMDEs =
emerging market and Investment levels

developing economies. 8.0
Investment refers to
gross fixed capital 6.0

5.3
formation. Aggregate
4.0
growth is calculated with
real investment at 2010 2.2 2.0

prices and market 1.0
0.0
exchange rates as -0.4
weights. -1.4
-1.8 -2.0
-4.2 -4.0
-4.5
-5.5
-6.0
-6.4 -6.3
-8.0
-10.0
-10.6
-12.0
World Advanced Economies EMDEs EMDEs excl. China
2020 2021 2022
Due to the impact of Covid-19, global investment in 2020 contracted by 5.5%

compared to 2019, of which investment in advanced economies dropped by
6.4%. Regarding the EMDEs excluding China, the level of investment plummeted
by 10.6%.
Chart 2.8: Contribution to global GDP of the 20 largest economies in 2020 (at current prices)
Source: World Economic Outlook (WEO) database, IMF
Contribution to global GDP
1 2 3 4
25% 18% 6% 4%
United states china japan germany
5
3% 12% 13% 19%
united group 6-10 group 11-20 175 other
kingdom Countries
According to IMF statistics, the 20 largest economies of the world contributed nearly 80% to global
GDP.
The United States is the largest contributor to global GDP in 2020, accounting for 25% of the total,
equivalent to more than USD 20,800 trillion. China ranked second in economic size, contributing
18% to total GDP. Several other large economies in the world include Japan, Germany, and the
UK, which respectively accounted for 6%, 4% and 3% of global GDP.
Vietnam
has been one of the most successful countries in the world at containing coronavirus
COVID-19 pandemic in Vietnam
In 2020 Vietnam's economy faced many difficulties and challenges in the

context of the complicated and unpredictable evolution of the Covid-19
pandemic. However, thanks to the dual goal of "both preventing pandemics and
developing socio-economics”, Vietnam has achieved several positive results
and maintained stable economic development.
According to WHO, the total number of infections in Vietnam by the end

of 2020 was 2,529 cases, including 35 deaths. During the year, the number of
newly confirmed cases per day always remained below 50. Currently, Vietnam
is one of the three countries in the world with the lowest number of cases per
million people.
At the end of January 2021, Vietnam entered the third wave of Covid-19 out-
break with new variants in several cities and provinces across the country. The
number of new cases per day had a record of up to 98 cases/day. However, the
situation has been well controlled and the number of new infections per day has
been decreasing gradually since the end of February 2021. It is expected that
this outbreak will be over at the end of March 2021.
Chart 2.9: Vietnam’s daily infections of Covid-19 in 2020
Source: WHO
Vietnam’s daily infections of Covid-19

100
75
50
25
0
01-2020 07-2020 01-2021
Cases Deaths
2,529 35 2,843
Covid-19 cases in 2020 Covid-19 deaths in 2020 Covid-19 cases until April 2021
Vietnam
is one of 4 countries in Asia with economic growth of over 1.5% in 2020
Vietnam’s economic growth
Chart 2.10: Real GDP growth rate of Vietnam compared to the region and the world, 1980-2025
Source: IMF
Note: shaded area

indicates forecasts Real GDP growth rate of Vietnam
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
Vietnam Sotheast Asia World
The IMF’s World Economic Outlook Report published in October 2020 forecast
that Vietnam's real GDP will grow by 1.6% in 2020, 4.9 percentage
points higher than the ASEAN average and 6 percentage points higher compared
with the world average.
The IMF’s
INDONESIA -1.5% MALAYSIA -6.0% SINGAPORE -6.0%
THAILAND -7.1% PHILIPPINES -8.3% VIETNAM +1.6%
Accordingly, Vietnam was the only country in the ASEAN-5 to have positive growth in 2020. IMF
statistics showed that the economies of Indonesia decreased by 1.5%, Malaysia and Singapore by
6%, Thailand by 7.1% and the Philippines by 8.3%. Vietnam is one of the countries with the greatest
economic growth rate in the world in 2020.
Due to the prompt and effective actions in preventing Covid-19 outbreaks in Vietnam, the IMF has
recently raised their forecast of Vietnam's economic growth to 2.4%, an increase of 0.8 percentage
points compared to the previous rate. According to Nikkei Asia, Vietnam's economy is expected to
remain in the leading position in Southeast Asia in 2021, with an estimated growth of 6.5 - 6.7%.
The scale of Vietnam’s economy

ranked 4th in Southeast Asia in 2020
Chart 2.11: Gross domestic product per capita, current prices, 2010-25
Source: IMF, VNC estimates
Note: shaded area

indicates forecasts Gross domestic product per capita
6,000
5211,9
5,000
4814,708
4430,02
4,000
4081,693
3758,887
3497,512
3416,232
3181,885
3,000
3058,4
2928,884
2902,787
2692,732 2755,371
2613,867
2539,343 2555,538
2440,734 2469,249 2475,91

2344,152
2173,318
2396,319 2338,157
2359,2082
2367,242 2240,818
2236,949
1928,274
2,000
2173,318
1903,152 1928,274
1628,519
Low-middle income 1,000

country average
Vietnam 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
According to the IMF, the size of Vietnam's economy in
340.61
2020 ranked 4th in Southeast Asia with an estimated value of
Billion USD
Surpassing Singapore 1
Indonesia
and ranked
2
Thailand
4 3
Phillipines
4
Vietnam
in Southeast Asia 5 Singapore
y
Chart 2.12: GDP of ASEAN countries at current prices in 2020

Source: IMF
Vietnam's per capita GDP has

GDP of ASEAN
increased about 1.8 times for
1,200
10 years, reaching
3,498
1,000
800
600 USD/person
in 2020, ranking 6th in
400
Southeast Asia after
200
Singapore, Brunei, Malaysia,
0 Thailand and Indonesia.
Billion
Indonesia
Thailand
Philippines
Vietnam
Singapore
Malaysia
Myanmar
Cambodia
Laos
Brunei
Timor-Leste
USD
GDP per capita of ASEAN Chart 2.13: GDP per capita of ASEAN countries
at current prices in 2020
70,000
Nguồn: Quỹ Tiền tệ Quốc tế
60,000
50,000
40,000 By 2025, Vietnam's per capita

30,000 GDP is estimated at
20,000
.
10,000
0
5,211.9
USD
USD
Singapore
Brunei
Malaysia
Thailand
Indonesia
Vietnam
Philippines
Laos
Cambodia
Timor-Leste
Myanmar
Major economic indicators

of Vietnam in 2020
Major economic indicators of Vietnam in 2020 compared to 2019

Source: GSO
Major eco
GDP Index of Industrial Retail sales of Investment
Production goods and services
+2.91% +3.4% +2.6% +5.7%

onomic indicators
Total export Total import International Consumer Price Core inflation
turnover turnover visitors to Vietnam Index
+6.5% +3.6% -78.7% +3.23% +2.31%

Two main factors influencing

GDP growth in 2020 are public investment and exports of goods in the FDI sector
Chart 2.14: GDP growth rate in the period 2011-2020

Source: GSO
GDP growth rate

8%
7.08 7.02 7%
6.68 6.81
6.24 6.21
5.98 6%
5.42
5.25
5%
4%
2.91 3%
2%
1%
0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
According to the General Statistics Office (GSO), in 2020 Vietnam had the
lowest economic growth rate in the 10 years since 2011 of 2.91%. However, in
the context of the Covid-19 pandemic, that was positive growth.
Agriculture, for- industry and The service sector
estry and fishery construction
2.68% 3.98% 2.34%
13,5% 53% 33,5%
Vietnam’s economic growth in 2021 is expected to reach 6.5%, equivalent to the IMF’s forecast.
However, this is a very challenging goal as the Covid-19 pandemic is still unpredictable and the
recovery of global trade remains uncertain. Moreover, Vietnam's economic growth in 2020 has
mainly come from an increase in public investment and exports of goods in the FDI sector (to be
discussed later in this report).
There have been positive changes

In economic structure: the service sector continues to account for the highest proportion of GDP.
Vietnam’s economic structure
Chart 2.15: Vietnam's economic structure over the years, 2016-20

Source: GSO
Vietnam's economic structure

10.04% 10.00% 9.98% 9.91% 9.80%
40.92% 41.26% 41.17% 41.46% 41.63%
Agriculture, forestry
and fishery 32.72% 33.40% 34.28% 34.49% 33.72%
Industrial production
and construction
Service
Product tax minus 16.32% 15.34% 14.57% 13.96% 14.85%

product subsidies
2016 2017 2018 2019 2020
Agriculture, for- industrial and Service sector

estry and fishery contruction
0.89% 0.77% ____%
14.8% 33.7% 41.6%

s
In recent years, the structure of Vietnam’s economy has been gradually changing, among and
within each economic sector: shifting from the agriculture, forestry and fishery sector to industry,
construction and services sectors.
Regarding the industry sector, there have been positive structural changes. Processing and
manufacturing industries will continue to be the driving force for development of the whole industry.
Consumer price index

Met the target below 4% set by the National Assembly
Consumer price index, inflation
Chart 2.16: Vietnam's average CPI growth rate in 2020

Source: GSO
Vietnam's average CPI

7%
6.43%
6%
5.91%
5.56%
5%
4.90%
4.39%
4%
4.19%
4.07%
3.96%
3.85%
3.71%
3.51%
3%
3.23%
2%
1%
0%
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12
3.0%
inflation
2.5%
Chart 2.17: Average core inflation
(previous year = 100) 2.0%
1.87
Source: GSO 2.31
2.01 1.5%
1,41 1.48
1.0%
0.5%
0.0%
2016 2017 2018 2019 2020

Chart 2.18: Vietnam's average inflation rate in 2020 (compared to the same period in 2019)
Source: GSO
Vietnam's average inflation

3.5%
3.25%
3.0%
3.10%
3.05%
2.96%
2.88%
2.81%
2.74%
2.66%
2.5%
2.59%
2.52%
2,43%
2.31%
2.0%
1.5%
1.0%
0.5%
0%
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12
In January 2020, the consumer price index (CPI) showed a relatively high increase of 6.43%:
despite this the price was effectively controlled and contracted steadily in the following months. In
December 2020, the price index went up by 0.19% over the same period last year, the lowest level
in the past 5 years. As a result, the average CPI of 2020 only increased by 3.23% compared to the
average of 2019, completing the goal of less than 4% set by the National Assembly.
In 2020, Vietnam’s core inflation witnessed a gradual decrease over the previous year. The
average core inflation of 2020 was up by 2.31% compared to that of 2019.
Average price of pork in 2019

increased by 11.79%
Consumer price index, inflation
AVERAGE CPI IN 2020

The average CPI in 2020 rose due to the following factors:
Prices of Noticeably Prices of drugs and

FOOD PRICES food products pork prices medical equipment
+4.51% +12.28% +57.23% +1.35%
(+0.17% of total growth). (+2.61% of total growth). (+1.94% of total increase). (Due to Covid-19).
School fees increased

Leading to an increase of
CPI
+4.32%
In the prices of the educational services group
Several factors that have curbed CPI growth:

Prices of Prices of group Prompt actions to
gasoline and oil travel services Government prevent
PRODUCTS Support packages outbreaks
-23.03% -6.24% -
(-0.83% of total growth). transportation prices such as reduction of electricity of the Covid-19 pandemic have
plummeted due to bills for customers in been conducted to ensure
in which the price of kerosene lower demand May and June 2020 market stability
-31.21%
AVERAGE CPI GROWTH RATE in 2020 COMPARED to 2019
BEVERAGEs & FOOD & TRANSport

CIGARETTEs FOODStUFF
1.50% 9.99% 11.2%
GARMENTs, HATs, Communications

FOOTWEAR & post
0.78%
CPI 0.58%
HOUSing &
CONTRUCTION 3.23% education
MATERIALS
others
1.79% 2.89% 4.08%
HOUSEHOLD & medicine & heath Entertainments,

HEALTH CARE care Culture &
SERVICEs services tourism
1.14% 2.15% 1.23%

Processing and manufacturing

Remain a key driving factor contributing to the overall growth rate.
Chart 2.19: Index of Industrial Production compared to the previous years, 2016-20
Source: GSO

112%
111.3
111%
110.2
110%
108.9 109%
108%
107.4
107%
106%
105%
104%
103.4
103%
2016 2017 2018 2019 2020
The industrial production index (IIP)
of the whole industry increased from 7.4% in 2016 to 8.9% in 2019. Due to the
severe impact of Covid-19 on industry, the IIP of 2020 increased by 3.4%, of
which the processing and manufacturing industry rose by 5.82%, contributing
1.25 percentage points to overall growth.
g industry
Chart 2.20: Index of Industrial Production in 2020 compared with average month in 2015
Source: GSO
Index of Industrial Production IN 2020

1.9935
1.9000
1.9239 1.9280
1.9079
1.8993 1.8000
1.7486 1.8401 1.7367
1.7000
1.7019 1.7098 1.8192
1.7749
1.6363
1.6000
1.7008 1.6097
1.5949
1.5733
1.5686
1.5373 1.5236
1.5000
1.4727 1.4670
1.5421 1.5542 1.4565 1.4568
1.4356 1.4329 1.4359
1.4009
1.3863
1.4000
1.3763 1.3761
1.4625 1.3629
1.3435 1.3403
1.3064
1.2930
1.2970
1.2890 1.2875 1.2945 1.3000
1.2463
1.2331 1.2291
1.2000
1.1795
1.1648
1.1000
1.0000
0.9237
0.8826 0.8837 0.8859 0.9000

0.8687
0.8556
0.8129 0.8146
0.8000
0.8177
0.7829 0.7819
0.7666
0.7000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total industry Mining and quarrying Manufacturing
Electricity, gas Water supply; sewerage, waste management and remediation activities
The power generation and distribution sector went up by 3.92%, contributing 0.19 percentage
points; water supply, waste and wastewater management and treatment increased by 5.51%, con-
tributing 0.04 percentage points. The mining industry dropped 5.62%, causing a contraction of 0.36
percentage points in the overall growth rate.
Business registration activities

In 2020 suffered from the negative affects of Covid-19.
Business registration
Chart 2.21: Enterprise registration status every month of 2020

Source: GSO
Enterprise registration
13,725
13,402
13,200 13,092
12,272 12,205
10,728 10,689
10,304
9,163
8,276
7,885
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
101.7 80%
In 2020, there were According to the GSO, more than
Thousand newly registered Thousand enterprises ceased

enterprises in Vietnam, down for a certain period, temporarily Of enterprises in the manufac-
by 2.3% compared to 2019. ceased and awaited turing and processing industry
However, the average regis- dissolution procedures, or claimed that their business
tered capital per newly estab- completed dissolution activities in Q1/2021 will be
lished enterprise surged by procedures: up by 13.9% over stable or better than in Q4/2020.
32.3% over the previous year, the previous year.
reaching 16.6 billion VND.
Agriculture, Forestry & Fishery Industry and Construction Service
2,640 30.1% 40,277 10.2% 92,023 7.6%

Newly registered enterprises Newly registered enterprises Newly registered enterprises
ENTERPRISE REGISTRATION 2020
134.9 Thousand 44,096 46,592 17,464

2.3% 11.9% 62.2% 3.7%
NEWLY REGISTERED Enterprises Enterprises Enterprises

Enterprises Re-operated Ceased for a certain COMPLETE
period of time DISSOLUTION
29.2%
(Total registered capital of 2,235.6 Trillion VND)
2,235.6 3,341.9
29.2%
47.0%
Trillion vnd trillion vnd

Of 134.9 thousand Of 39.5 thousand enterprises that
newly registered enterprises Recorded upward adjustment of capital
5,577.6
39.3%
Trillion vnd
Total additional registered capital in the economy of this year 2020
The pandemic has caused

Significant losses in tourism, accommodation and food retail sales.
Hình 2.3: Retail sales of goods and services of 2020

Source: GSO

Retail SALE tourism
3,996.9 17.9
Trillion VND 6.8%
5,059.8 59.5% Trillion VND
ACCommodation, Trillion VND

food & beverages others service
510.4 534.6
Trillion VND 13.0% 4.0% Trillion VND
12.2%
2.6%
Retail sales of goods
11.0%
11.6%
10.0%
5.059,8
4.930,8
4.393,5
3.956,6
Chart 2.22: Retail sales of goods and services for 2016-2020

3.546,3
(Trillion dong)
Source: GSO
2016 2017 2018 2019 2020
As trade and services have been influences by the pandemic, the growth of total
retail sales of consumer goods and services decreased from 12.2% in 2019 to
2.6% in 2020 (reaching 5,059.8 trillion VND). Retail sales of goods in 2020 in
particular went up by 6.8% over the previous year, mainly coming from the
increase of food and foodstuff sales (up 10.7%) and household appliances, tools
and equipment sales (up 7.5%). Meanwhile, 2020’s revenue from travelling and
accommodation & catering services reduced by 13% and 59.5% respectively.
As of December 2020
Vietnam has signed 15 FTAs, 13 of which have already gone into effect.
Currently, there are 2 FTAs under negotiation.
Trade and Investment: Free Trade Agreements
Table 2.1: Vietnam’s FTAs as of December 2020
Source: WTO Center
Vietnam’s FTAs
Type FTA Status
In effect ASEAN - AEC Effective since 1993
ASEAN - China Effective since 2003
ASEAN - South Korea Effective since 2007
ASEAN - Japan Effective since 2008
Vietnam - Japan Effective since 2009
ASEAN - India Effective since 2010
ASEAN - Australia/New Zealand Effective since 2010
Vietnam - Chile Effective since 2014
Vietnam – South Korea Effective since 2015
Vietnam - Eurasian Economic Union Effective since 2016
CPTPP (TPP11) Effective in Vietnam since January 14, 2019
ASEAN - Hong Kong Effective since June 11, 2019
VietNam – EU (EVFTA) Effective since August 01, 2020
Singed not yet in effect RCEP Signed on November 15, 2020
Vietnam – The UK (UKVFTA) Signed on December 29, 2020, provisionally
effective since January 01, 2021
Under negotiation Vietnam - EFTA Negotiations commenced in May 2012
Vietnam - Israel Negotiations commenced in December 2015

Since entering into force

The EU-Vietnam agreement has created more opportunities for imports and exports
to the EU market to improve, playing an important role in economic recovery.
Trade and Investment: Free Trade Agreements
Vietnam - EU Free Trade Agreement (EVFTA) is a new-generation FTA between Vietnam and 28
EU member countries. EVFTA, together with the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), are the two FTA’s with the widest range and highest level of
commitments that Vietnam has participated in so far.
Effective since August 2020, EVFTA has brought a positive impact on

import-export activities to the EU market while contributing to offsetting e
conomic losses caused by Covid-19. Five months after coming into force,
exports to the EU market increased by around 1.6% over the same period in
2019, reaching USD 15.38 billion. Several Vietnamese products have started to
take advantage of EVFTA to increase their export turnover to European coun-
tries. Seafood exported to the EU in the three months of Q4/2020 increased by
10%, 12% and 13% respectively over the same period in 2019. In particular,
Vietnam’s shrimp export turnover to the EU market increased by 5.2% over the
same period, reaching USD 473 million. Significantly, thanks to EVFTA, the
export price of Vietnamese rice reached 1,000 USD/ton for the first time.
However, Vietnamese enterprises either lack an adequate understanding of

EVFTA or have limited capacity to exploit the agreement’s advantages.
Moreover, the EU is a difficult market with relatively strict regulations which
require a thorough checking of quality and origin, especially for agricultural and
aquatic products such as cashew nuts, honey and seafood.
Trade surplus in 2020
Reached a record of USD 20 billion
Trade and Investment: Balance of Trade
Chart 2.23: Import-Export turnover and balance of trade in Vietnam, 2009-2020
Source: General Department of Vietnam Customs
Import-Export turnover
300
Trade balance Export Import
282.7
264.2 262.7
243.7
253.1
250
236.9
215.1
213.0
200
176.6
174.8
165.6
162.0
147.8
150.2
150
132.0 132.0
113.8
114.5
106.7
96.6 100
84.4
72.2
70.0
57.1
50
20.0
6.8 11.1
0.8 0.0 2.4 1.8 2.1
0
-3.6
-12.9 -12.6 -9.8
-50
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
In 2020, in the context of coronavirus impacts, global trade was disrupted and the global supply chain was
broken. However, Vietnam has benefited from the trend to shift production chains from China to Vietnam.
Therefore, import-export activities still witnessed positive developments despite the contraction in many
countries all over the world.
Specifically, according to the General Department of Vietnam Customs (GDVC), export turnover in 2020
reached USD 282.7 billion, up 7% (equivalent to 18.4 billion USD), and import turnover reached 262.7 billion
USD, up 3.6% (equivalent to 9.3 billion USD). The balance of trade recorded a surplus for the 5th
consecutive year, amounting to nearly 20 billion USD in 2020: the highest value of the past 10 years.
China
Remained the largest trading partner of Vietnam in 2020
Trade and investment: Total import - export turnover
No.26
The total value of import-export turnover
545.4 BILLION USD

In 2020, Vietnam ranked 26th in the world for the size of international trade,
indicating the drive for the country’s import-export activities to develop in the
context of the pandemic. The total value of import-export turnover reached
nearly USD 545.4 billion, increasing 5.4% over the previous year (GDVC).
The Asia region accounted for the highest proportion of Vietnam’s total import
and export value. China continued to be Vietnam’s largest trading partner:
import-export value accounted for 24% of the total, reaching more than USD
133 billion. Japan and South Korea were also two major Asian trading partners
with Vietnam.
The region that saw the highest trading growth with Vietnam was the Americas,
with a rate of 16.2% and a total import-export value of USD 112.02 billion. The
United States is Vietnam’s second-largest trading partner, with an import-export
value of nearly 90.8 billion USD, accounting for 17%. Meanwhile, the value of
Vietnamese imports and exports with the European market reached USD 63.85
billion, decreasing by 3.1% in 2020.
Chart 2.24: Total import - export turnover of goods in 2020 (billion USD)
Total import - export turnover
China USA
24% Total import - export turnover 17% Total import - export turnover
133.06 Billion USD 90.79 Billion USD
Korea EU
ASEAN Japan
Others countries
20% Total import - export turnover
106.92 Billion USD

THE UNITED STATEs

was the largest export market of Vietnam in 2020
Trade and investment: Export of goods
Chart 2.25: Major export markets in 2020 (bil. USD)
Major export markets
USA EU japan OTHERS

(77.08 Billion USD) (40.05 Billion USD) (19.28 Bill USD) (55.17 Bill USD)
27% 17% 14% 8% 7% 7% 20%
China ASEAN KOREA

(48.87 Billion USD) (23.09 Bill USD) (19.11 Bill USD)
Vietnam’s export turnover in 2020 was estimated at USD 282.7 billion, an

increase of 7% over the previous year.
The United States was Vietnam's largest export partner with a total turnover of
nearly USD 77.1 billion (accounting for 27% of the total) and also the market with
the highest export surplus, up to nearly USD 63.4 billion, followed by China with
nearly USD 48.8 billion (accounting for 17%). Several countries and territories that
accounted for a high proportion of Vietnam's export structure were Europe (14%),
ASEAN (8%), Japan (7%), and South Korea (7%).
In 2020, Vietnam’s merchandise exports to China and the United States increased
by 17.9% and 25.7% respectively, compared to the previous year. Meanwhile, the
export turnover of Vietnam to the ASEAN market plunged by 7.7%. Exports to
Europe decreased by -3.4%, indicating that Vietnam has not fully exploited the
potential of the Vietnam-EU Agreement.
The FDI sector
accounted for the majority of key export commodities’ turnover
Some major Vietnamese export commodity groups in 2020 are: phones and components /
electronics, computers and components / machinery, equipment and tools / textiles / seafood -
together accounting for around 57% of export turnover. Specifically, due to high demand, the
export of computers, electronics and components increased by 24.1% in 2020, while the
machinery, equipment, and tools sector surged by 48.6% in value compared to 2019.
Chart 2.26: Major export commodity groups in 2020 Chart 2.28: Structure of goods export in 2019 and 2020
Source: General Department of Vietnam Customs Source: General Department of Vietnam Customs
Major export Structure of goods export

2019 2020
3.0%
51,39
51,18
44,58
%
7.9
35,92
32,83
29,81
27,19
2019
18,30
50.5%
8,40
8,53
3%
Phone and Electronics, Textiles Machinery Seafood

Components
38.
Computers and equipment

Components and tools
Chart 2.27: Structure of goods export in 2020 by sector
Structure of goods export 2.98%
1%
Textiles 7.2 Heavy industrial goods
and minerals
60.0% 40.0%
Machinery, equipment and tools
2020
Light industrial goods
54.17%
87.3% 12.7%
and handlcrafts
%
35.63
Electronics, computers and components

3.2%
96.8% Agriculture and forestry
products
Phones and components
2.2%
97.8%
Seafood
Foreign invested sector Domestic sector
However, the majority of the four key commodity groups’ turnover belonged to the FDI sector. In
particular, exports of FDI enterprise accounted for 97.8% in the phones and components sector and
96.8% in the computers, electronics and components sector. The total export value of this group in
2020 amounted to USD 202.89 billion, up 10.7% over 2019.
China
Was the market where Vietnam has the largest trade deficit in 2020.
Trade and investment: Import of goods

Chart 2.29: Items with import turnover of over 10 billion dollars in 2020
Items with import turnover

70
63,97
60
50
51,60
40
37,25
36,60
30
20
16,64
10
14,70
13,30
11,87
Computers, electronics Phones and components Textiles Machinery, equipment

and components and spare parts
2019 2020
Vietnam’s import turnover in 2020 is estimated at USD 262.7 billion, up 3.7%

compared to 2019. The FDI sector’s value amounted to USD 169.01 billion,
increasing 13.1% compared to 2019. Four imported commodity groups with a
turnover of over USD 10 billion, accounting for 49.4% of the total import
turnover in 2020, are computers, electronics, and components; phones and
components; textiles; machinery, equipment, and tools.
Chart 2.30: Major import markets in 2020
Major import markets
china ASEAN EU Others

(84.19 Billion USD) (30.47 Billion USD) (15.34 Bill USD)(51.75 Billion USD)
32% 18% 12% 8% 6% 5% 19%
korea japan USA

(46.90 Billion USD) (20.34 Billion USD) (13.71 Billion USD)
China continued to be the largest of Vietnam’s import markets in 2020 with a turnover of USD
84.19 billion, gaining 11.5% over the previous year and contributing 32% of import turnover. China
was also the market with which Vietnam had the largest trade deficit, amounting to USD 35.32
billion.
In the context of Covid-19, imports to Vietnam had a slightly increasing trend, reflecting the
gradual recovery of domestic production. However, the high trade deficit in certain markets may
pose several potential risks for the trading activities of Vietnam.
Import and Export of services

Was severely affected by the pandemic
Trade and investment: Import – Export of services

In 2020, the trade deficit in services increased by USD 10.5 billion compared to the
previous year, reaching USD 12 billion and nearly double the service export turnover.
Source: GSO
Import – Export of services
Export of services Import of services
6.30 18.3
64.8% 14.5%
Billion USD Billion USD
TRADE DEFICIT 12 BillION USD
Chart 2.31: Structure of services trade in 2020 The service export turnover is estimated at 6.3
Source: GSO
billion USD, plummeting 68.4% compared to
Structure of services 2019. Of which, tourism services accounted for
the largest proportion of 39.8% total exports,

20,000
reaching 2.5 billion USD, a decrease of 78.8%;
18,000
16,000
transportation services accounted for 11.6% of
6,000
14,000 total exports at 727 million USD, down 83.4%.
12,000
4,000 10,000 Service import turnover is estimated at 18.3
8,000 billion USD, decreasing 14.5% from 2019.

6,000 Transportation services (accounting for 45.2% of
3,073
Transportation services
8,300 4,000 total imports) gained USD 8.3 billion, up 3.5%;
Tourism servicess 2,500 2,000 tourism services (accounting for 22% of total
Others 727 0 imports), reached 4 billion USD, down 37.5%.
Export Import Mill USD
Total social investment in 2020

Showed subdued growth
Trade and investment: Total social investment

Total realized social investment capital at current prices in 2020 reached 2,164.5 trillion
VND (~ USD 94 billion), up 5.7%, accounting for 34.4% of GDP. This is the lowest
growth of capital in the 10 years since 2011 and is due to the pandemic’s impact.
Total social investment
TOTAL
2,164.5 Trillion VND

34.4%
GDP
STATE SECTORS Non-state sectors FDI SECTORs
729.0 972.2 463.3

14.5% 1.3%
3.1%
Trillion VND Trillion VND Trillion VND
Due to Covid-19, projects that went into operation in 2020 could not fully be exploited in
accordance with investment levels, making the Incremental Capital Output Ratio (ICOR)
increase, despite steadily decreasing over the previous 4 years. The ICOR surged from
6.07 in 2019 to 14.28 in 2020. In the 5 years since 2016, the average ICOR was 7.04.
Capital Output Ratio

16
Chart 3.32: Vietnam's Incremental Capital 14
Output Ratio, 2016-20
14.28
12
Source: GSO 10
6
6.42
6.11
5.97
6.07
State 4
Non-State 2
0
FDI
2016 2017 2018 2019 2020
Total realized investment capital
of the State sector increased significantly in 2020
Chart 3.33: Growth rate of realized social investment capital, 2016-20

(at current prices)
Source: GSO
social investment capital

120%
118.5
117.1 117.3
114.5
115%
112.8
112.3
111.2
110.4
109.5 109.9
110.2 110%
108.9
107.9
107.3
106.9
105.7
105%
103.8
103.1
102.6
100%
In 2016-20, the structure of the total
98.7
realized social investment capital has
95% shifted towards decreasing the
2016 2017 2018 2019 2020
proportion of the public sector in total
Total State Non-state FDI investment. However, in 2020, the
State investment capital increased
Chart 3.34: Structure of realized social investment capital, 2016-20
Source: GSO noticeably by 14.5%, reaching 729
trillion VND (equivalent to USD 32
social investment capital
billion), accounting for 33.7% of the
21.6 23.7 23.4 23.0 21.4 total. This was due to the acceleration
of public investment to stabilize and
maintain economic development in the
38.9 40.6 43.3 46.0 44.9
context of the pandemic. In 2020, the
FDI sector investment reached 463.3
37.5 35.7
trillion VND (equivalent to USD 20
33.3 31.0 33.7
billion), accounting for 21.4% of total
2016 2017 2018 2019 2020 realized capital, down 1.3%.
Vietnam
Has been a potential destination for FDI
Trade and investment: Foreign Direct Investment
According to the Foreign Investment Agency (Ministry of Planning and

Investment), cumulative as of 20th December 2020, Vietnam had attracted
33,070 FDI projects from 139 countries and territories with a total registered
capital of USD 384 billion. South Korea has been the largest investor in Viet-
nam, followed by Japan, Singapore and Taiwan. Processing and manufacturing
is the sector that has attracted the most FDI projects in Vietnam (more than 15
thousand) and the largest registered capital of up to USD 226.5 billion.
In 2020, the total newly registered capital in the manufacturing and processing
industry reached USD 7.2 billion, accounting for nearly 50% of total
newly-registered capital. Singapore was the largest investor among 79 countries
and territories licensed to invest in Vietnam in 2020, with total capital of USD 6.2
billion, accounting for 42% of total newly registered capital; followed by China
with USD 1.6 billion, accounting for 10.8%.
Attracting and managing FDI into Vietnam contains shortcomings: an example

being that the contribution of FDI enterprises to Vietnam’s economy was not
commensurate with the government incentives they received. The legal
framework for FDI activities in Vietnam is currently in the process of
improvement, which leaves several gaps for illegal acts such as tax evasion or
environmental destruction.
Vietnam is currently a potential destination for foreign investors as the US-China

Trade War is likely to continue and concerns rise about the disruption of the
global supply chain caused by the coronavirus. Therefore, Vietnam needs to
have a suitable strategy to exploit this opportunity.
Table 2.2: Vietnam FDI Attraction in 2020
Source: Ministry of Planning and Investment
Vietnam FDI Attraction

Total newly Total registered
INDUSTRY Number of
registered investment
projects
capital (Mil USD) capital (Mil USD)
Manufacturing and processing industry 15,132 7,190.77 226,490.20
Real estate activities 941 987.41 60,057.32
Production, electricity, gas, steam, and air conditioning supply 152 5,080.81 28,921.82
Accommodation and food service activities 891 106.13 12,506.70
Construction 1,755 237.24 10,684.18
Wholesale and retail trade; repair of motor vehicles and motorcycles 5,181 431.18 8,484.48
Others 9,018 612.86 36,900
Total 33,070 14,646.42 384,044.21

Chart 2.35: Five countries with the largest investment projects in Vietnam in 2020 Source: Ministry of Planning and Investment
Countries investment in vietnam

korea china taiwan
27.2% 27.2% 9.4% 7.9% 8.4% 33.0%
japan SINGAPORE others

State budget deficit in 2020

Increased about 14 trillion VND compared to the annual plan
Trade and investment: State budget revenue and expenditure
According to the Ministry of Finance in October 2020, State budget revenue in

2020 was estimated at 1,323 trillion VND, equal to 87.5% of the annual plan.
Domestic revenue reached 1,115.6 trillion VND, equal to 88.3%; revenue from
crude oil was estimated at 32.5 trillion VND, equal to 92.3%; revenue from import
and export activities reached 170 trillion VND, equal to 81.7% of the annual plan.
Total state budget expenditure was estimated at 96.5% of the annual plan,
reaching 1,686 trillion VND. Recurrent expenditure was 1,068.5 trillion VND,
equivalent to 101.1%; spending for investment and development was 495.4
trillion VND, equivalent to 105.3%; interest payments were 109.9 trillion VND,
equivalent to 93% of the annual plan.
At the beginning of January 2021, state budget revenue increased by nearly 184
trillion VND, reaching 98% of the annual plan. Total revenue was estimated at
1,507 trillion VND. State budget expenditure had completed the plan of 1,781.4
trillion VND. The state budget deficit in 2020 was estimated at 248.5 trillion VND,
equivalent to less than 4% of GDP. In the 2016-2020 period, the average state
budget deficit was about 3.6% of GDP, meeting the target of not exceeding 3.9%
of GDP.
Chart 2.36: State budget revenue and expenditure in 2020
Source: Ministry of Finance
State budget revenue and expenditure

2,000
1,800
1,781
1,748
1,600
1,616
1,551
1,507
1,400
1,463
1,425
1,293
1,200
1,289
1,193
1,101
1,000
997
800
600
400
249.0
196.0 192.0 192.0 197.0 200
174.0
0
2015 2016 2017 2018 2019 2020
Revenue Expenditure Budget deficit Unit: Trillion VND
State budget revenue State budget expenditure

Chart 2.37: State budget revenue structure in 2020 Chart 2.38: State budget expenditure structure in 2020
Source: Ministry of Finance Source: Ministry of Finance
Investment and
development expenditures
(29.4%)
Interest payment
(6.5%)
Domestic
(84.3%) Aids provision expenditure
expenditure
(0.1%)
revenue Crude oil
(2.5%) Current expenditures
(63.4%)
Import - Export
(12.8%) Salary reform expenditure
(0.5%)
Grants
(0.4%) Others
(0.1%)
Public debt
has been effectively managed for the past 5 years, contributing to support of the
economy during Covid-19
Public finance: Public debt
Chart 2.39: Public debt, Government debt and National external debt to GDP ratios, 2015-19
Source: IMF
Public debt
70%
60%
63.7
61
61.4
58.3
55.8
55.0
50%
52.7
51.7
49.2
49.6
49.9
49.0
48.0
47.9
47.1
46.0
44.8
40%
42
30%
20%
10%
0%
2015 2016 2017 2018 2019 2020
Public debt/GDP (%) Government debt/GDP (%) National External debt/GDP (%)
According to statistics from the Ministry of Finance, by the end of 2020 public debt
was estimated at 55.8% of GDP, and government debt was 49.6% of GDP, a
sharp decrease compared to the corresponding ratios in 2016 (63.7% and
52.7%). The national external debt-to-GDP ratio has decreased gradually, from
BI
LL
S
L LS
Chart 2.40: Central Government Debt, 2015-19 BI
Source: IMF
Central Government Debt

External Domestic 140,000
120,000
77,482.68
74,765.16
68,922.13
100,000
64,574.70
54,674.26
80,000
60,000
40,000
47,733.63
46,978.26
46,323.14
42,915.79
39,644.97
20,000
11,810.09
11,096.03
10,102.52
16,868.19
16,222.44
10,930.12
10,260.31
9,504.30
8,811.82
9,333.85
3,539.73
1,544.68
3,009.55
2,556.14
2,285.81
2,111.24
1,973.38
4,082.51
4,055.21
2,286.06
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Mill USD
Outstanding disbursement debt service payment
49.9% in 2017 to 47.9% in 2020.
The debt-to-GDP ratios have been maintained within the limits approved by the National Assembly,
creating room for fiscal policies.
2021 Country Report 2021- Socio - Cultural environment
III. Socio-Cultural Envir

Major social indicators
Population and population growth rate
Population structure
Urbanization rate
Migration
Income
Education
Human Development Index (HDI)
Labor force & Unemployment
Consumption & Consumption Behavior
Religion
Natural disasters and environmental pollution
ronment
Major social indicators
POPULATION
97.58 Million P
MALE FEMALE
49.8% 50.2% 3
SEX ratio at birth
1
Boy
0
Girl
54.6
Mill persons
53.4
Mill persons
2.48
Unemployme
employed Of labour forc
Labor force at age 15+ Population at 15+ working age
Population 97.58 Million
Median age 32.9
Population growth 1.14%
Person Total fertility rate 16.3%

(births per woman)
URBAN RURAL Life expectancy at birth 73.5

(years)
Poverty headcount ratio at 4.7%

$1.90 a day (PPP)
36.8% 63.2%
(% of population)
GDP Per Capita USD 3,251
life expectancy at Proportion of Internet users 70.3%
birth (% of population)
73.7ages
Proportion of urban residents 36.8%
(% of population)
Proportion of households 93.1%*

with housing
8% 2.51%
Underemployment
Recruitment
Floor area per person 23.5m2/person*
Male ratio 49.8%

(Males per total population)
ent rate Underemployment
ce at Rate of labour force Literacy rate of the 95.8%*
at working age population aged 15 and older
Population and population

Growth rate
According to General Statistics Office of Vietnam, the estimated population of

Vietnam in 2020 was 97.58 million people, increasing by 1.14% and 10.93%
compared to 2019 and 2010, respectively.
Chart 3.1: Vietnam's population 2010 - 2020 (Unit: thousand people)

Source: GSO, danso.org

Vietnam's population
97,580
96,482
95,546
94,601
93,640
92,677
91,714
90,753
89,802
88,871
87,968
Vietnam's popula-
tion 2010 - 2020
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
15 3
The population of Vietnam Ranking Ranking
currently accounts for
1.25%
of the global population most populous country in the world most populous country in
Southeast Asia
The population of Vietnam is expected to reach 98.168 million people in 2021.

Vietnam's population is higher than the regional average but the population growth
rate is lower.
Chart 3.2: Population, population growth and GDP per capita in Southeast Asia in 2020
Population, population growth and GDP

Area mean
Timor-Leste
2.0
Laos
1.5
Cambodia Philippines
Malaysia
Brunei Darussalam
India
1.0
Vietnam
Singapore
Myanmar
0.5
Thailand
0.0
GDP per capital (Thousand USD) Regional average
0 50 100 150 200 250
Despite being the 3rd largest population in the region (behind the Philippines and Indonesia),
Vietnam's population growth rate in 2020 was lower than the regional average, reaching only
0.91%, while rates in the Philippines, Brunei, Malaysia, Cambodia, Laos and Timor-Leste were
higher than the regional average (1.1%).
In terms of GDP per capita, Vietnam was among the countries with a low average GDP per capita
in the region, only higher than Timor-Leste, the Philippines, Myanmar, Laos and Cambodia, and
16.7 times lower than Singapore, the country with the highest GDP per capita in the region.
Population structure
Chart 3.3: Population structure by gender and age, forecast to 2021
Source: United Nation,

populationpyramid.net Population structure by gender and age
100+
90-94
80-84
70-74
60-64
50-54
40-44
Ages
30-34
Ages group 20-24
10-14
Thousand people
0-4
-5,000 -2,500 0 2,500 5,000
% Population
Chart 3.4: Population structure by age group (%) Source: United Nation, populationpyramid.net
Population structure by age group

80%
60%
15-59
40%
20%
0-14
60+
65+
0%
80+
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
According to forecasts from the Population Committee of the United Nations, in
2021 Vietnamese people aged 15-64 will account for about 68.6% of the total population. Vietnam
is in a golden period of a population with a large workforce, but the trend over time is for an
increase to the median age and a reduction in younger people, bringing significant pressure to
bear on the socio-economic situation. As the number of 16-30 year olds tends to decrease, this will
gradually lead to an increasingly dependent population in the future.
Chart 3.5: Median age of Vietnamese people Source: Population Committee of United Nations, populationpyramid.com
Median age of Vietnamese people

50
40
30
20
10
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
The distribution of Vietnamese population by gender is relatively even, with 48.59 million
men (accounting for 49.8%) and 48.99 million women (50.2%). The sex ratio of the population in
2020 was 99.2 males / 100 females. The average life expectancy of both sexes was 75.8, of which,
the life expectancy was 71.7 for men and 79.9 for women.
Urbanization ratE
Chart 3.6: Proportion of urban population (% of total population)

Source: GSO
Source: GSO
Proportion of urban population
36.8
35.1 35.9
34.6 34.4
33.8
2015 2016 2017 2018 2019 2020

In the past 10 years, the rapid and widespread urbanization in many localities has increased
urban population. The average population growth rate in urban areas in the period 2009-2019
was 2.64% / year, 6 times higher than that of rural areas, but still lower than the growth rate
of 3.4% / year in the period 1999-2009.
The urban population in 2020 was 35.93 million people, accounting for
36.8% of the total population, increasing by 2.81 million people compared
to 2019.
Despite an increase in the size and growth rate of the urban population, the proportion of
Vietnam's urban population is still very low compared to developed countries in the world and
other countries in the region. In Southeast Asia, the proportion of urban population in
Vietnam is only higher than Laos (36.3%), Timor-Leste (31.3%), Myanmar (31.1%) and
Cambodia (24.2%).
Migration
In November 2020 only 7,007 Vietnamese citizens went abroad to work,

accounting for 47.43% of the number of expatriate workers in the same period
last year (November 2019: 14,772 workers).
Chart 3.7: Total number of Vietnamese people working in foreign countries / the number of destination countries
Source: Department of Overseas Labour, Laodong.vn
Source: Department of
Overseas Labour, Total number of Vietnamese people
Laodong.vn
40
28
27
28
22 152,530
29 140,000
134,751
126,296
38 119,530
33 25
106,840
88,155
80,320
78,000
Total
The number of
countries/ territories
2012 2013 2014 2015 2016 2017 2018 2019 2020
In the first 11 months of 2020 the total number of citizens working abroad was
only 54,307, equal to 40.9% over the same period in 2019. In the whole of
2020 it was estimated that there would be 78,000 Vietnamese workers in
foreign countries.
After 6 consecutive years of reaching over 100,000 workers abroad, 2020’s

numbers in general declined significantly due to the impact of the COVID-19
pandemic.
Chart 3.8: The number of Vietnamese workers in some countries in 2020
Source: Department of Overseas Labour, Vietnam Association of Manpower Supply, dangcongsan.vn
27,325 23,403 1,077 481 150

a
re A A
n
south ko
I
ROMAN
Taiwa
ALGER
JAPAN
Source: Department of Overseas Labour,

Vietnam Association of Manpower Supply,
dangcongsan.vn
In 2020, there were 27,325 Vietnamese employees working in Japan; 23,403 employees in
Taiwan; 1,077 workers in South Korea; 481 workers in Romania; 150 employees in Algeria;
464 male workers in China; 341 male workers in Singapore; 227 male workers in Uzbekistan
and other markets. (This is rounded data. Due to the impact of the COVID-19 epidemic, the
deviation is negligible).
According to the Vietnam Association of Manpower Supply, in 2021 there will be about
90,000 workers working abroad. Each following year there will be about 120 -150 thousand
expatriate workers abroad.
However, there are still limitations, including the low qualifications and awareness of some
workers, leading to a lack of information about the job and the labor market in foreign
countries, with many workers accepting huge loans to work abroad. Additionally, there are
problems like illegal migration flow, risk of fraud, labor exploitation and mistreatment of
citizens working abroad. In particular, the situation of Vietnamese people working abroad
illegally is reflected in the tragedy of 39 people killed in haulage containers in the UK in 2019.
Migration
From 2005 to date, the net migration rate of Vietnam has always been
negative, indicating more people emigrate abroad than immigrate.
Chart 3.9: Vietnam Net Migration Rate 2015 - 2021 (per 1000 population)
Source: macrotrends.net
Vietnam Net Migration Rate

2015 2016 2017 2018 2019 2020 2021F
-0.00
-0.25
-0,50
-0,75
-0,842
-0,868 -0,860 -0,851 -0,861 -0,879 -0,898
-1,00
In 2020, Vietnam's net migration rate was

-0,879 and expected to be -0,898 in 2021.
Migration patterns of Vietnamese citizens

abroad are increasingly diverse: the scale of
migration is increasing and the reasons for
migration become more complex. In particular,
the number of migrant women and children has
increased.
Migration
Chart 3.10: Number of marriage cases between Vietnamese citizens and foreigners in
some countries in 2018
Source: vietnamtimes.org.vn, baodansinh.vn
Number of marriage cases
01 02
TAIWAN USA
4,498 4,193
In case of marriage In case of marriage
2,666 In case of marriage

515
In case of marriage
SOUTH KOREA CANADA

03 04
According to statistics from the Ministry of Public
Security, between 2008 and 2018, an average of
18,000 Vietnamese citizens married foreigners each
year (72% were female), mainly married to
Taiwanese, Chinese, American and Korean citizens.
Chart 3.11: Number of Vietnamese children adopted by foreigners in 2012 - 2018
Source: vietnamtimes.org.vn, baodansinh.vn
Number of Vietnamese children adopted
575
551
539
498
430
334
298
2012 2013 2014 2015 2016 2017 2018
More specifically, in 2018 there were 4,498 cases of According to a report by the
marriage between Vietnamese citizens and Taiwanese, Ministry of Justice since the Law
4,193 marriages to Americans, 2,666 marriages to on Adoption took effect, to date
Koreans, and 515 marriages with Canadians. Other 3,291 Vietnamese children have
countries / territories equal 3,543 marriage cases. been adopted by foreigners.
Income
Chart 3.12: GDP per capita/year (USD)
Source: The Ministry of Planning and Investment
Source: The Ministry of

Planning and Investment GDP per capita/year
4000
3,521
3000
2,714
2,540
2,389
2,215
2,109
2000
1000
0
2015 2016 2017 2018 2019 2020
According to the Ministry of Planning and Investment, the economic scale in

2020 reached about USD 343 billion and GDP per capita was USD 3,521,
showing that Vietnam has controlled the COVID-19 pandemic very well.
The 14th National Assembly set the GDP per capita target in 2021 at USD 3,700. After only one
year, from 2020 to 2021, the target has been increased from USD 2,750 per capita to USD
3,700 per capita.
Education
Chart 3.13: Number of students in the school year 2020-2021 (thousand people)
Source: The Ministry of Education and Training
Number of students in the school
University 1.560,3
High School 2.740.5
Secondary 5,920.5
Primary 8,890.0
Preschool 5,076.1
0 2,500 5,000 7,500
According to the Ministry of Education and Training, in the school year

2020-2021 there were 1,560.3 thousand university students; 17,551
thousand students of general education (including 2,740.5 thousand high
school students, 5,920.5 thousand secondary students, and 8,890 thousand
primary students), and 5,076.1 thousand preschool children (including
4,350.6 thousand kindergarten children and 725.5 thousand nursery school
children).
According to the 2019 Census on Population and Housing, the proportion of literate population
aged 15 and over was 95.8%, increasing by 1.8% compared to 2009. Over the past 20 years,
the proportion of literate females has increased by 7.7%. The gap in literacy rates between men
and women has also narrowed significantly. By 2019, the proportion of literate men reached
97.0%, only 2.4% higher than that of women. The general proportion of students attending
primary school was 101.0%, in secondary school 92.8%, and in high school 72.3%. The
proportion of children in school age but not attending school was 8.3%, down 8.1% from 2009.
Chart 3.14: Out-of-school proportion for boys and girls (%)

Source: The Ministry of Education and Training
Out-of-school proportion
Boys Girls
18.5
1999
23.5
17.3
2009
15.3
9.2
7.5 2019
25 20 15 10 5 0
In 2019, 8.3% of children were of general school age but not attending school, decreasing
nearly 2/3 compared to 1999 (20.9%).
The proportion of school-age girls who have never attended / dropped out of school has changed,
from a higher level in 1999 than that of boys to a lower level in 2019, by a small percentage. The
out-of-school proportion for boys and girls in 2019 were 9.2% and 7.5% respectively.
Human Development Index (HDI)
Chart 3.15: Human Development Index (HDI) of Vietnam 2010 - 2019

Source: UNDP
Human Developm
0.8
0.690 0.693 0.704

0.668 0.673 0.675 0.680 0.685
0.653 0.663
0.6
0.4
0.2
0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Human Development Index (HDI) of Vietnam in 2019 was 0.704. With this
result, Vietnam entered the list of countries with a high HDI, ranking 117/189
countries and territories, one level higher than in 2018. From 1990 to 2019,
the HDI of Vietnam has increased by nearly 46%, among the countries with
the highest HDI growth rates.
ment Index (HDI)
IHDI Value
0.588 (World:0.587)
MPI Value
0.019 GII
(Developing Countries: 0.108) 0.296 (World :0.436)
HDI Value GDI Value

0.704 (World:0.737) 0.997 (World:0.943)
Vietnam's Gender Development Index (GDI) in 2019 was 0.997, ranked 65/162 countries, three places
higher than in 2018, and placing the country in the top five groups globally. The proportion of women
participating in elected bodies (such as the National Assembly, People's Councils at all levels) in Vietnam
accounted for 26%, a relatively high level compared to the rest of the world.
Vietnam was also in the third group from bottom up in terms of the vulnerable employment rate (54.1%).
Labor force
Chart 3.16: Labor force in working age by sex

The labor force in working age in
Labor force 2020 was estimated at 48.3 million

people, decreasing by 849.5 thou-
100%
45.6 45.4 sand people from the previous year.
There were 21.9 million working-age
female workers, accounting for 45.4%
75%
of the labor force in working age of
the whole country, decreasing by 0.2
percentage points compared to 2019.
54.4 54.6
50%
Regarding professional technical

qualifications, the trained labor force
aged 15 and over with degrees and
25%
certificates (from elementary level
and above) in Q3/2020 was 13.21
million people, increasing by 469
0%
2019 2020 thousand people and 377 thousand
people compared to Q2/2020 and
Women
Q32019, respectively. The proportion
Men
of labor force aged 15 and over with
diplomas and certificates in quarter
3/2020 was 24.20% of the labor force
aged 15 and over. The labor force
with a university/postgraduate degree
accounted for the highest proportion
at 47%, or 6.22 million people.
Chart 3.17: Labor force aged 15 and over with diplomas/certificates (%)
Labor force aged 15

100%
46.7 47.2 47.1 48.1 46.2 46.4 47.0
University/ Postgraduate
75%
16.9 17.5 15.8 16.3 15.7 17.0

50% 16.4 College
17.8 18.4 18.3

21.3 21.2 19.8 20.3
Intermediate level
25%
19.3 19.1 19.6

15.7 15.7
15.1
Elementary level
14.2
0%
Q1/2019 Q2/2019 Q3/2019 Q4.2019 Q1/2020 Q2/2020 Q3/2020

Labor structure
by industry sectors
Chart 3.18: Labor structure from 15 years old and above divided by economic sectors in 2015 - 2020
Source: GSO, consosukien.vn
Labor structure
100%
75%
50%
25%
0%
2015 2016 2017 2018 2019 2020
Agriculture, forestry and fishery Industry and Contruction Services

In 2020, the number of employees aged 15 and over working in the agriculture, forestry and
fishery sectors was 17.5 million, decreasing by 7.2% compared to 2019; the industrial and
construction sectors had 16.5 million employees, up 0.3%; the service sector had 19.4 million
employees, up nearly 0.1%.
Labor continues to shift from agriculture, forestry and fishery sectors to industrial / construction
and service sectors with the corresponding proportion of labor in the sectors in 2020 of 32.8%;
30.9%; 36.3% (compared to 2019: 34.5%; 30.1% and 35.4% respectively).
Unemployment rate
Chart 3.19: Unemployment rate (% of total labor)

Source: GSO
Unemployment rate
6%
4%
2%
0%
2010 2012 2014 2016 2018 2020
Vietnam World
Vietnam’s unemployment rate in 2020 was 2.26% (of the total number of
employees), much lower than the global average of 5.42%. Unemployment
increased in most countries, especially in major economies such as Canada,
the US and China. Vietnam's workforce continued to increase, following the
recovery of Q3/2020. Due to the impact of the COVID-19 pandemic the
Chart 3.20: Unemployment rate by sex (%)
Source: GSO
Unemployment rate by sex
1.75
Men
1.97
1.89
2.02
2.01
Women
2.67
0 1 2
2018 2019 2020
unemployment rate increased by 0.27 percentage points compared to 2019. However, Vietnam is
among countries with the lowest unemployment rates.
In terms of gender, the unemployment rate of men was 1.89%, while that of women was higher at
2.67%. Compared to 2019 the male unemployment rate decreased (1.97% in 2019), while that of
females increased (2.01% in 2019).
Unemployment rate
Table 3.1: Unemployment rate by education level (%)
Source: 2019 Census on Population and Housing, consosukien.vn
Unemployment rate by education level
Gender
Education level General
Male Female
Total 2.05 2.00 2.11
No technical expertise 1.99 2.04 1.93
Elementary 1.30 0.83 4.57
Intermediate 1.83 1.61 2.13
College 3.19 3.07 3.29
University 2.61 2.48 2.75
Post-graduate 1.06 0.99 1.14

According to the 2019 Census on Population and Housing, the groups of employees with
college and university degrees had the highest unemployment rate (3.19% and 2.61%,
respectively). The group with a lower unemployment rate were employees with lower
qualifications such as intermediate (1.83%), elementary (1.3%) and no technical expertise
(1.99%).
The group with the lowest unemployment rate were employees with postgraduate degrees
(1.06%) due to the high demand for professional qualifications.
In most qualification groups, the unemployment rate of women was always higher than that of
men, especially for the group of employees with elementary level education (4.57% in women).
Consumption and consumption
After 3 years in which final consumption expenditure of households continuously

decreased (2016 - 2018), this index increased in 2019, reaching 68.16% of GDP.
The average growth rate of final consumption expenditure of households in 2019
was 7.36%.
Chart 3.21: Final consumption expenditure of households
Source: The Conference Board, Nielsen
consumption expenditure of households

70 10
9.5
8.2
68.54
68.16 8
68 67.96 7.3
68.03 7.3
7.2
7.3
67.57
6.1
6
66.56
66.35
66 4.9
5.2
65.81
65.46
4.1
4
64.50
64
2
% GDP
% annual growth
62 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
According to Nielsen market research, in overcoming the the COVID-19 pan-

demic Vietnam was one of the most optimistic countries globally in 2020.
Although the Consumer Confidence Index (CCI) reached 117 points in Q2/2020
(down 9 points compared to Q1), it increased again in the Q4/2020, reaching
121 points. This index always maintains above 100 points (below 100 points is
seen as "pessimistic").
Vietnam's CCI in Q4/2020 was also higher than the world average (98) and the
Asia-Pacific average (110).
behavior
Figure 3.2: Consumer confidence index of countries around the world Q4/2020 Source: The Conference Board, Nielsen
Consumer confidence index
Sweden (82)
Norway (85)
Russia (66)
Canada (92) The UK (89)
Germany (96)
France (71) Kazakhstan (79)
Spain (63) Italy (56)
The US (118) Israel (83)

Japan (56)
Morocco (67)
UAE (105)
Mexico (84) Saudi

Arabia (114)
India (127) Taiwan (90)
Thailand Vietnam (121)
(98)
Venezuela (70)
Philippines (123)
Colombia (91)
Indonesia (110)
Chile (77) Brazil (93)
Australia (104)
South Africa (85)
Argentina (72) New Zealand (98)
Chart 3.22: Vietnam's Consumer Confidence Index Source: Nielsen
Vietnam's Consumer Confidence Index
129 129
128
126
125
124
123
122
121
120
117
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020
Consumption
And consumption behavior
Chart 3.23: Major concerns of Vietnamese consumers Q2/2020
Source: Nielsen
Major concerns of Vietnamese consumers

Q1/2020 Q2/2020
40%
Job security
45%
49%
Health
44%
21%
The economy
31%
22%
Work/ Life balance
23%
6%
Increasing utility bills
8%
0% 10% 20% 30% 40% 50%

In Q2/2020, Job Security (45%, up 5% from Q1/2020) and Health (44%, down 5% from
Q1/2020) were the two biggest concerns of Vietnamese consumers.
Consumer concerns in the economy skyrocketed (31%, up 10% from Q1/2020), and this was
also the highest record since Q2/2014. The Life/work balance fell one spot in the list of concerns
(23%, compared to 22% in Q1/2020). Meanwhile, due to greater time spent at home, consumers
were more concerned with increasing utility bills (8%, up 2% from Q1/2019).
These trends were largely predictable because Vietnam was one of the first countries to
successfully control the first wave of the pandemic and enter the Recovery phase. Therefore,
Health was no longer the number 1 concern of Vietnamese people in Q2/2020. However, the
long-term impact of the pandemic on the economy and consumer uncertainty led to job
instability and a hesitation in spending.
Religion
Chart 3.24: Number of religion followers in Vietnam (million people)
Source: National ASEAN 2020 Committee - The Sub-Committee on Communications And Culture
Number of religion followers
Buddhism 11
Catholicism 6.5
Caodaism 2.5
Protestantism 1.5
Hoa Hao Buddhism 1.3
Islam 0.8
0 2 4 6 8 10 12
In Vietnam, there are 6 major religions: Buddhism, Catholicism, Protestantism, Islam,
Caodaism and Hoa Hao Buddhism.
Buddhism has the largest number of followers - more than 11 million, with over 17,000
worshipping facilities, nearly 47,000 dignitaries, 4 Buddhist Institutes, 9 Buddhist Colleges
and 31 Intermediate Schools.
Catholicism has about 6.5 million followers, 42 bishops and about 4,000 priests.
In addition, Caodaism has 2.5 million followers, Protestantism has 1.5 million, Hoa Hao
Buddhism has 1.3 million, Islam and other religions have 800,000 followers.
Natural disasters and environm
In 2020, the social-economic situation was heavily affected by 14 storms; 265

thunderstorms, tornadoes or heavy rain; and 120 floods, with landslides, droughts and
saltwater intrusion. This resulted in 379 people dead and missing and 1,060 injured:
4,300 houses collapsed and were swept away and there was damage to a further 594.9
thousand houses. Nearly 269 thousand hectares of rice and 134.9 thousand hectares of
crops were damaged. The total property destruction was estimated at VND 39.1 trillion, of
which damage from storms and floods was VND 32.3 trillion VND (82.8% of the total
damage).
There were 14,332 cases of environmental violations nationwide, of which 12,820 cases
were handled with total fines of over VND 176.8 billion. Vietnamese laws are also getting
stricter, along with efforts to join international conventions to protect the environment in
parallel with economic development.
mental pollution
Vietnam's population in 2021 ranks 15th in the world and 3rd in Southeast Asia: of which, 35% live in
urban areas. Vietnam’s population density is among the highest in the Asia Pacific region, and is
higher and younger than the world average.
Vietnam is a religious-diverse country with 6 main religions, but the majority practice ancestor
veneration. The government does not officially favor a particular religion, but different religious
worship activities are flourishing in various forms.
The Vietnamese people’s ability to survive and overcome adversity is highly evaluated, the human
development index is above average and literacy rates are high. 70% of Vietnamese people access
the internet and consumer behavior is changing dramatically in the digital technology explosion. The
government has decided to primarily emphasize these aspects.
Vietnam's future depends on the younger generation who are asserting themselves in all areas,
including politics.
2021 Country Report 2021- Technological environment
IV. Techno
ological Environment
State management of S&T activities
Legal Documents on S&T
Policies in support of S&T activities
Figures on the development of S&T activities
Expenditure on R&D
S&T State budget expenditure
Human resources for R&D
Results of S&T activities
State management of S&T activit
Source: Decree
No. 95/2017/NĐ-CP
Prime Minister
National Council for Other national councils,

Science and technology Committee and National
Policy Steering Committee
The S&T sector in Vietnam is under the management of Vietnam’s

government with the support of the National Council for Science and
Technology Policy. This is a consulting council to the Prime Minister on
important issues related to the development of S&T. The council provides
advice to the Prime Minister in two forms: independent consultation and
consultation on request. Vietnam's S&T activities are governed by a system
of administrative levels from central to local.
Ministry of Science and Technology: The Ministry of Science and

Technology is a governmental agency which performs functions of State
management on science and technology, including scientific research,
technology development and innovation activities; development of science
and technology potentials; intellectual property; standards, metrology and
quality control; atomic energy, radiation and nuclear safety; and State
management on public services in fields under the Ministry’s management as
stipulated by law.
ties
r of Vietnam
People’s committee
Ministry of Ministries, Ministry - Level Of provincial cities and
Science and techonology Agencies and Centrally administered
Government agencies Cities
Diagram 4.1: State administrative system of S&T in Vietnam by level Source: Compiled by VietnamCredit
State administrative system

Central administrative Level
MOST & ministries, ministry - level
agencies and Government agencies
Local administrative level

DOST & departments of provinces S&T council of provinces
and districts
grass-roots administrative level

Science management offices in science research S&T council in R&D organizations
institutes and universities or technological/
technical departments in large enterprises
In Vietnam, there are 4 main laws governing

S&T related activities, including the Law on
Science and Technology (2013), Law On
Intellectual Property (2005), Law on Technolo-
gy Transfer (2017), Law on High Technologies
(2008). Several other laws related to S&T are
the Anti-Corruption Law (2005), Law on Infor-
mation Technology (2006), Law on Atomic
Energy (2008), Law on Telecommunications
(2009), Law on Radio Frequencies (2009).
Table 4.1: Laws S&T related activities Source: Compiled by VietnamCredit
law pRomulgate substitute Amendment Contents

Supplement
Law on Science 2000 2013 2000 •General provisions on governing scope, regulated entities,
and Technology tasks and principles of S&T activities, State policies on
S&T activities, prohibited acts
•S&T organizations
•Individuals involved in S&T activities, development of HRs in S&T
•Determination, organization of implementation of S&T tasks
•Application of findings from R&D, and dissemination of knowledge
of S&T
•Investment in S&T development
•Construction of infrastructure and development of S&T market
•International integration on S&T
•State administration on S&T
Law On 2005 2009 •General provisions on scope, subjects, subject matters of IPRs,
Intellectual application of law, limitations, State’s IP policies, rights and
Property responsibilities of organizations and individuals for IPRs
protection, responsibilities for state management of IP, IP
fees and charges
•Copyright and related rights
•Industrial property rights
Law on 2006 2017 2019 •General provisions on scope, State policies on technology transfer
Technology (TT), transferable technologies, forms & methods of TT,
Transfer rights to make TT, capital contribution by technology to
investment projects, technologies encouraged/restricted/
banned for/from transfer, prohibited acts in TT
•Appraisal of technology applied to investment project
•Technology transfer agreement
•Measures to promote TT and S&T market development
•State management of TT
Law on High 2008 •Prioritized technological domains: Information technology,
Technologies Biotechnology, New material technology, Automation technology.
•Hi-tech application, research and development
•Hi-tech development in econo-technical sectors
•Hi-tech human resources
In early 2021, the Ministry of Science and

Technology (MOST) issued several S&T
policies related to technology innovation,
national product development, high-tech
development, and artificial intelligence for
the 2021-2030 period, in the context of
Industrial Revolution 4.0.
Table 4.2: Policies in support of S&T related activities Source: Compiled by VietnamCredit
Decision program objectives
118/QĐ-TTg The National Technology •Support enterprises to transfer, innovate and

Innovation Program improve their technologies, thus creating high-
through 2030 quality products with high added value
•Promote the transfer of technologies for
agricultural development in rural and mountainous
areas and regions with difficult and extremely diffi-
cult socio-economic conditions
•Train scientific and technological HRs for
technology transfer, innovation and improvement
130/QĐ-TTg National High-Tech •Research, master, develop high technologies and
Development Program apply the efficiency of high technologies to serve
through 2030 socio-economic development, ensure national
defense and security, protect the environment,
manufacture products and provide services
•Form and develop several high-tech industries,

high-tech agriculture and enterprises operating in
these domains
157/QĐ-TTg Program On National •Research and apply advanced technologies in the
Product Development by production and development of national products to
2030 increase their productivity, quality and competitive-
ness
•By 2030, form and develop at least 10 new nation-
al products
127/QĐ-TTg National Strategy on •Promote research, development and application of
Research, Development AI, making this an important technology of Vietnam
and Application of Artifi- in the Fourth Industrial Revolution
cial Intelligence (AI)
through 2030 •By 2030, Vietnam will become a center for innova-
tion, development of AI solutions and applications
in ASEAN and world-wide
Figures on the development

Of S&T activities
Several figures on the development of S&T activities in Vietnam according to

MOST’s statistics
687 13 236
R&D High-Tech Universities
Organizations Industrial Parks
08 03 67 Thousand
Concentrated information
Technology HIGH-TECH PARKS Researchers
parks
Expenditure on R&D
Image 4.1: R&D spending by country (in $PPP)

Source: howmuch.net
R&D spending
U.S China Japan Germany
$476.5B $370.6B $170.5B $109.8B
India U.K Brazil Russia Italy

$48.1B $44.2B $42.1B $39.8B $29.6B
Austria Saudi Arabia Belgium Israel Mexico

$12.7B $12.5B $12.4B $12.3B $11.6B
Malaysia Poland Denmark Finland Czech

Republic
$9.7B $9.2B $7.9B $7.2B $6.7B
Ireland Hungary Hong Kong Pakistan Ukraine

$3.6B $3.4B $3.0B $2.5B $2.4B
Slovenia Morocco Slovak Nigeria Qatar
Republic
$1.5B $1.5B $1.4B $1.4B $1.3B
Belarus Philippines Lithuania Kuwait Tunisia

$907M $887M $851M $832M $828M
Tanzania Puerto Rico Estonia

$624M $548M $545M
Costa Rica Peru Oman Azerbaijan Uzbekistan

$412M $406M $357M $352M $345M
More than $100B
Sri Lanka Iraq Botswana Mali Nepal
$50B - $100B
$220M $206M $183M $161M $159M
$10B - $50B
Palestine Mozambique Namibia Bolivia Mongolia
$1B - $10B
$96M $92M $81M $78M $78M
$500M - $1B
Panama El Salvador Burkina Faso Trinidad and Mauritus
Tobago
$100M - $500M
$48M $43M $40M $39M $39M
Less than $100M
Honduras Burundi Bermuda Madagascar Seychelles
$9M $8M $8M $5M $4M
According to data from the UNESCO Institute for Statistics, the total Vietnamese spending on
R&D is 1.8 billion USD. Figures for ASEAN countries such as Indonesia, Thailand, Malaysia
and Singapore are 2.1 billion USD, 5.2 billion USD, 9.7 billion USD and 10.1 billion USD
respectively. Vietnam's average spending on R&D per labor is relatively low compared to other
countries in the region, estimated at under $20 per labor.
g by country
South France
Korea
$109.8B $60.8B
Canada Australia Spain Netherlands Turkey Sweden Switzerland

$27.6B $23.1B $19.3B $16.5B $15.3B $14.2B $13.7B
Singapore
$10.1B
Egypt Norway Thailand Argentina UAE Iran Portugal

$6.1B $5.8B $5.2B $5.0B $4.2B $4.2B $3.9B
Greece Indonesia New Vietnam Colombia Romania Chile

Zealand
$2.4B $2.1B $1.9B $1.8B $1.6B $1.6B $1.5B
Cuba Bulgaria
$1.1B $1.0B
Ecuador Kenya Ethiopia Serbia Croatia Kazakhstan Luxembourg

$806M $788M $787M $758M $737M $718M $715M
Iceland Sudan Ghana Jordan Uganda Algeria Uruguay

$292M $281M $277M $263M $243M $241M $240M
Senegal Macedonia Gabon Cyprus Malta Bosnia and Zambia

Herz
$149M $145M $132M $124M $104M $103M $101M
Macao Moldova Georgia Bahrain Paraguay Armenia Guatemala

$71M $66M $64M $62M $61M $59M $48M
Albania Montenegro Congo, Togo Tajikistan Kyrgyzstan Brunei

DR Darussalam
$37M $35M $28M $27M $27M $25M $10M
Gambia Cape Verde Lesotho
$4M $2M $1M
Expenditure on R&D
Note: Figures from 2010-2016 are
finalization figures, 2017-2021 are
estimates
Chart 4.1: Expenditure on R&D by funding

Expenditure source over the years
3.99 1.83 5.04 3.05 100

1.51 2.89 4.49
90 Source: MOST
80
Vietnam's expenditures on
28.4 70
3.13 R&D contributed by
39.97 60
0.82
50
enterprises witnessed a sharp
State budget 40 increase over the years
58.09
Universities
0.95
64.12
1.40
30 2011-2017, from 28.4% to
Enterprises 20 64.12%. Meanwhile, R&D
FDI 10
spending from the state
Others 64.47 55.87 33.03 26.93 0
2011 2013 2015 2017 budget decreased rapidly,
Chart 4.2: Expenditure on R&D by economic sectors from 64.47% in 2011 to
Source: MOST
26.93% in 2017. In general,
Expenditure the state sector plays the most
important role in R&D
spending, accounting for
0%
13.
nearly 50% of total
expenditure.
In terms of research area,

49.0%
Vietnam has the highest

0%
investment concentration in
38.
State
Non- State
S&T and industry sectors,
FDI accounting for more than 70%
of total R&D spending.
S&T State budget expenditure
Chart 4.3: State budget expenditure for S&T estimates over the years, 2010-21
Source: MOF
State budget expenditure

14,000
Central government budget Local government budget
12,000
2,930
3,180
2,750 10,000
2,512
3,106
1,818
1,846
8,000
6,000
1,690
1,610
1,454
1,376
4,000
1,171
2,000
9,440
5,338
8,731
4,983
9,895
7,732
7,546
2,973
4,464
7,622
4,382
9,620
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Bill VND
S&T activities in Vietnam received the highest investment from the state budget. State budget
expenditure estimates for S&T tended to increase gradually over the 2010-2019 period, from 4,144
billion VND in 2010 to 12,825 billion VND in 2019, always maintained at 2% of annual state budget
expenditure. More than 70% was spending taken from the central budget, and below 30% was from
local budgets. State budget expenditure for S&T did not meet the requirements or complete the
expenditure plan for several years during this time.
In 2020, the state budget expenditure was estimated to have decreased slightly compared to 2019,
reaching 12,800 billion VND, and is expected to shrink to 10,838 billion VND in 2021 in the context of
the Covid-19 pandemic. As a result of this, public non-business units will face several challenges to
financial autonomy, needing to streamline organizational structure and require more economical and
efficient budget management and administration.
Human resources for R&D
Chart 4.4. R&D human resources by functions Chart 4.5: Distribution of R&D human resources
by economic sectors
Source: MOST Source: MOST
human resources Distribution

200,000
2.20%
180,000
25,547
8,245
160,000 12.28%
16,934
11,066
7,036
11,522 140,000
13,283
5,525 136,070
Human
14,244 131,045
11,590 120,000
Resources
9,781
112,430
105,230
100,000
80,000
60,000
Researchers 85.53%
Technical staff 40,000
Support Staff
Other Functions
20,000
State
Non-State
0
2011 2013 2015 2017 People FDI
The number of human resources for R&D has increased since 2011, reaching
172.68 thousand people in 2017. Researchers have always accounted for the
largest percentage, at 70-80% of the total.
Human resources working in the state sector accounted for the largest proportion
and in the FDI sector was the smallest. Specifically, in 2017, up to 85.53% of the
R&D workforce was in the state sector, while in the non-state sector and FDI, the
proportion was very low, at 12.28% and 2.2% respectively.
Chart 4.6: R&D human resources by area of activity
Source: MOST
human resources by area
26,192
20,584
88,481
34,197
3,229
non-business units
Higher education
organizations
organizations
Administrative
institutions,
Businesses
colleges
agencies,
R&D
S&T
Higher education institutions & colleges and R&D organizations are the two areas that attracted the most
R&D human resources, accounting for more than 70% of the total. Meanwhile, R&D human resources
working for S&T service organizations were very low, accounting for under 2%.
Results of S&T activities:

Research papers
Chart 4.7: International Science Rankings of Vietnam and several countries in 2020
Source: SCImago
International Sci
12,839,607
6,589,695
3,715,590
1
3,222,549
2,893,614
Ranking
4 5
3
1,196,961
2
Number of research 1
papers
USA China UK Germany Japan South
Regarding the number of research papers, in 2020, Vietnam had 63,969 articles in total,
ranked 58/240, an increase of 1 level compared to 2019, behind 4 countries in
Southeast Asia; Malaysia, Singapore, Thailand and Indonesia.
Regionally, the number of research papers in Vietnam was comparatively low, less than
a quarter of the adjacent country - Indonesia (ranked 47/240 with 158,733 articles).
Malaysia was the leading ASEAN country in the number of research articles, ranked
33/240 with 325,476 articles. The USA had the highest number of research papers in
the world, reaching more than 12.8 million articles.
ience Rankings
58
47
44
33 34
31
13
335,476 325,476 317,592

199,226 158,733 63,969
h Korea Hong Kong Malaysia Singapore Thailand Indonesia Vietnam
In terms of citations from research papers, Vietnam had 671,649 citations and the number of self-citations
was 107,970, accounting for about 16% of the total, an increase of 1% compared to 2019. Vietnam's citation
rate is considered acceptable, although this assessment criterion does not completely reflect a country's
scientific research capabilities.
Regarding the citations per research paper, Vietnam rated at 10.5, ranking 182 in the world, down 12 places
compared to 2019. Thus, the lack of citation of Vietnamese scientific papers still exists and worsened in
2020, indicating the influence of Vietnam's researchers remained minor compared to other countries in the
world.

University Rankings
For the first time, in 2020, Vietnam had 3 universities in the list of the most prestigious
universities in Asia ranked by Times Higher Education: Vietnam National University,
Hanoi ranked in group 201-250, Hanoi University of Science and Technology in group
251-300 and the Vietnam National University (Ho Chi Minh City) in group 401+.
Table 4.3: Rankings of 03 Vietnam’s universities in Asia region 2021
Source: Times Higher Education
Ranking Vietnam’s universities

Vietnam national Hanoi University of vietnam national
University, hanoi Science and techonology university (hcmC)
Rank 201-250 251-300 401+
Name/ Country/ Region Vietnam Vietnam Vietnam
Overall 27.3-30.4 24.8-27.2 13.2-19.5
Citations 38.8 42.3 16.0
Industry Income 36.5 37.2 42.8
International outlook 47.4 44.6 40.3
Research 10.8 10.3 10.5
Teaching 25.6 17.1 16.4
Globally however, only Vietnam National University, Hanoi ranked in the group
801-1000; Hanoi University of Science and Technology dropped from group 801-1000
and moved to group 1000+ with Vietnam National University (Ho Chi Minh City).
Of these, Vietnam National University, Hanoi had the leading scores in teaching,
research, and international outlook indicators among the 3 Vietnamese higher
education institutions in the rankings. Hanoi University of Science and Technology
was the leader in citations index, and Vietnam National University (Ho Chi Minh City)
ranked first in the industry income score.
Vietnam’s universities are leading in research
“University Performance Metrics” (UPM) is a Vietnamese ranking system implemented by a research team at Vietnam
National University, Hanoi under the sponsorship of the Ministry of Education and Training. The UPM system evaluates
and ranks universities according to 8 categories (strategic governance, education, research, innovation, innovation
ecosystem, IT infrastructure, internationalization and community services), including a total of 54 indicators. UPM will
star 1-5 for groups of institutions with relatively equal performance.
In 2020, among the 30 participating universities in Vietnam, there are 4 universities meeting the 5-star standard according to UPM: Vietnam National
University, Hanoi; VNU University of Science, VNU University of Engineering and Technology, and Hanoi University of Science and Technology.
Table 4.4: List of UPM participating research universities 2020 Source: University Performance Metrics
List of UPM
1 Vietnam National University, Hanoi
2 Kasetsart University
3 VNU University of Science
4 VNU University of Engineering and Technology
5 Hanoi University of Science and Technology
6 Telkom University
7 Hanoi University of Pharmacy
8 Hanoi National University of Education
9 Thuyloi University
10 Burapha University
11 Hanoi University of Mining and Geology
12 Phenikaa University
13 Vinh University
14 Universitas Negeri Malang
15 University of Transport Communications
16 Hue University
17 University of Science, Hue University
18 Hue University of Education
19 Hue University of Medicine and Pharmacy
20 National University of Civil and Engineering
21 Visayas State University
22 University Of Economics, Hue University

Positive signals in state management by information technology
Chart 4.11: Number of public eServices integrated to the National eService Portal
Source: Jacques
Morisset, WB; Annual
Number of public e-Services
3,000
economic assessment 2,800
for Vietnam in 2020, 2,500
NEU
2,000
1,908
1,500
1000 1,00
725
500
169
0 0
Dec19 Mar20 Jun20 Aug20 Oct20 Feb21
Chart 4.12: Number of visits (in thousands)
Number of visits
140,000
116,000 120,000
100,000
80,000
61,900 60,000
46,300
40,000
32,000
20,000
11,000
0 0
Dec19 Jan20 Apr20 Jun20 Aug20 Feb21
2020 is the year Vietnam kicked off its national digital transformation, with three main pillars:
digital government, digital economy and digital society. With efforts to build a digital govern-
ment and apply information technology in the operations of state administrative agencies, there
have been several positive signals. The number of public eServices integrated on the National
eService Portal has increased sharply, from 8 services by the end of 2019 to 2,800 services as
of February 2021. Visitors surged, reaching 11 million after 1 month of implementation, 61.9
million by August 2020 and nearly doubling in February 2021, estimated at 116 million visits.
E-government with the application of S&T contributes to cost savings in implementing public
services, estimated at VND 8,100 billion/year and has received positive feedback from
Vietnamese society.
The digital boom has become a reality
Chart 4.8: The explosion in e-commerce Chart 4.9: Percentage of firms which started or increased the use of
digital platforms by sector
explosion in e-commerce Percentage of firms

40% 80
14
37%
60
35% 35%
12
40
11.8
30% 30%
20
10
10.08
25% 25% 0
24%
Agriculture Commerce Manufacturing Others
Jun Sep-Oct
23%
8
8.06
20% Chart 4.10: Percentage of firms which started or increased the use of
digital platforms by size
18%
6
6.2
15% Percentage of firms

80
5.0
4
4.07
10%
60
2.97
2 40
5%
20
0 0%
2014 2015 2016 2017 2018 2019 2020

0
Large Medium Small
Volume (Bill USD) Growth (%) Jun Sep-Oct
In 2020, Vietnam's digital economy had positive developments. Vietnam's e-commerce market reached USD 11.8
billion, an increase of 18% compared to 2019. Although that was low growth compared with an average of 25%-30%
in recent years, it was a positive result in the context of Covid-19’s complicated development.
Despite a heavy impact on the purchasing power of consumers, the pandemic brought both opportunities and chal-
lenges for businesses by increasing digital transformation. From June to October 2020, more than 65% of all busi-
nesses have started or accelerated the use of digital platforms in the sectors of agriculture, commerce, manufacturing
and other services.

Outstanding achievements in 2020
“Digital Vietnamese knowledge system” project
Digital Education project Covid Safety Map Digital Humanitarian

igiaoduc.vn antoancovid.vn inhandao.vn
Encyclopedia of Smart counselling

Vietnam system for nutrition, hygiene Vietnam Digital Map
bktt.vn and food safety vmap.vn
The project, approved in 2017 by the Prime Minister, is one of the activities
intended to strengthen the capacity to access Vietnam’s Industrial Revolution 4.0.
The project’s object is to build a database of many different fields based on AI
and BigData to serve the community and society.
The project was one of the most successful activities in 2020, with a contribution
in building pandemic zones using Vmap, providing quick information on the risk of
infection and serving epidemic prevention.
Currently, the platforms of a few projects have been completed and updated,
including: Digital Education (igiaoduc.vn), Open Encyclopedia (bktt.vn), Digital
Map of Vietnam (vmap. vn), Digital Humanitarian (inhandao.vn), Covid Safety
Map (antoancovid.vn). Some other projects being completed include: Digital
Nutrition, Digital Culture, Digital Pharmacology, Voice Technology.
Successfully researched and Successfully researched, produced Researched, produced and
produced the SARS-CoV-2 and tested the Vibot-1a robot successfully tested the NaRoVid1
detection kit robot
The SARS-CoV-2 detection kit The medical support robot The NaRoVid1 robot is
researched and produced by Vibot-1 was ordered by the implemented by the Institute of
the Military Medical Academy in Ministry of Science and Technology Application under
collaboration with Viet A Technology for the Military the Ministry of Science and
Technologies Joint Stock Medical Technical Academy to Technology, and is capable of
Company has been licensed for produce. VIBOT-1a is capable cleaning the floor and
use by the Ministry of Health, of giving medicines, collecting disinfecting isolated areas for
approved by the WHO and garbage, giving meals to Covid-19 infected patient
licensed by UK Department of patients, reducing workload for treatment, instead of using
Health and Social Care to be nurses and doctors, limiting medical staff. In particular, the
distributed in Europe. Besides the direct contact with infected robot can disinfect itself before
being donated to a number of or suspected Covid-19 cases leaving the isolated area.
countries such as Laos, and avoiding cross-
Indonesia and Hungary, the contamination.
test kit has also been ordered
for distribution in the UK and
US markets, with a committed
number of at least 1 million
tests/month.

Global Innovation Index
Table 4.5: GII rankings of Vietnam (2018–2020)
Source: WIPO
GII rankings of Vi
Gil Innovation Inputs Innovation outputs
2020 42 62 38
2019 42 63 37
2018 45 65 41
Vietnam’s global innovation index (GII) in 2020 did

not change its place of
42/131
Ranking : In Southeast Asia
1 1
Singapore
in the group of low 2

Malaysia
middle-income countries 3 Vietnam
In 2020, Vietnam's input innovation ranking increased by 1 level, however output

innovation dropped 1 level compared to 2019. The business sophistication level
was significantly improved, up 30 levels from 2019’s ranking of 69.
Chart 4.13: Score and rankings of Vietnam’s GII pillars in 2020
Source: WIPO
Score and rankings of Vietnam’s GII pillars

90 80
80 83
70
58.5 79
70 73
60
53.0
60
50
50 38.4
34.5 40
32.7
40 31.7
39 38
26.0 37 30
30 34
20
20
10 10
0 0
Institutions Human capital Infrastructure Market Business Knowledge & Creative

Ranking
Score
and research sophistication sophistication technology outputs outputs
Ranking Score
The GII is an important tool to help the Government of Vietnam continue to focus on innovation
management and administration. According to WIPO, Vietnam currently retains several limitations
in innovation related to environmental indicators and exports of ICT services.

Intellectual Property
Chart 4.14: Number of Vietnamese entities’ Chart 4.15: Top 10 provinces/cities with highest industrial
industrial property applications by subject property applications, 2011-20
matter, 2011-20
Source: Intellectual Property
Office of Vietnam Vietnamese entities Top 10 provinces/cities
160,000
4% 140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
93%
Ho Chi Minh City
Hanoi
Binh Duong
Long An
Đong Nai
Da Nang
Hai Phong
Can Tho
Bac Ninh
Hung Yen
Trademarks (325,345) Industrial designs (16,083)
Patents (5,725) Utility Soulutions (2,994)
Chart 4.16: Increase of Vietnamese entities’ patent applications, 2011-20
Vietnamese entities’ patent applications

1,200
1,000
800
600
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Intellectual Property
Office of Vietnam
In the 10-year period from 2011, the Intellectual Property Office of Vietnam received 350,237
applications registered for industrial property rights, of which the majority were national trade-
marks, accounting for nearly 93%. Patent applications accounted for 1.6%, reaching 5,725
applications. In the context of the Covid-19 pandemic, the number of Vietnamese industrial
property registration applications in Q2/2020 that were granted also increased compared to
2019, indicating growing concern about intellectual property issues and demonstrating Viet-
nam's upstream development trend facing the pandemic’s impact.
The number of Vietnamese patent applications/utility solutions have shown a gradual

increase over time, particularly in 2020, rising from 1,115 in 2019 to 1,505 in 2020, or 35%.
By contrast, the number of applications filed by foreigners decreased by 2%.
2021 Country Report 2021- Appendix
V. Appendix
05 potential industri
Banking Industry Real Estate Industry Stee

ies in 2021
el Industry E-commerce Industry Logistics Industry

Banking Industry
In 2020, the banking industry showed positive development, exceeding the set plan
despite the impact of the Covid-19 pandemic.
According to the financial statements of 27 banks, in Q4/2020 total profit increased

by 13.7% compared to 2019, reaching 150,154 billion dong. Vietcombank’s profit
accounted for the highest proportion, reaching 23,045 billion dong, down slightly
from the previous year. VietinBank ranked second, with more than 17 trillion dong,
up 48.9%, despite a cut in profits from lending interest rates and the withdrawal of
interest from clients affected by Covid-19.
Several other banks with significant growth rate include Kienlongbank (up 84.1%),
MSB (up 96.7%) and PG Bank (up 137.1%).
Chart 5.1: Top 10 banks with highest profit before tax in 2020
Top 10 banks with highest profit

25,000 60%
Billion VND
23,122
50%
23,050
48.9%
20,000 42.1%
40%
17,070
30%
15,000 27.7%
26.1%
23.1%
14,116
20%
15,800
13,000
12,838
15.9%
13,019
11,461
10,000
10,732
10%
10,324
9,596
9,214
6.5%
10,688
7,516
0%
10,036
-0.7%
5,000
5,818
5,802
5,018
-7.9%
-10%
-14.1%
4,082
0 -20%
Vietcombank VietinBank TechcomBank VPBank Agribank MB ACB BIDV HDBank VIB
2019 2020 Growth compared 2019 (%)
Positive profits in the banking sector in 2020 came from: the reduction of revenue from the lending
segment; the increase of income from non-credit activities such as bancassurance; digital banking;
foreign currency trading; online payment services; flexible operating costs, especially the reduction of
provisioning after Circular 01/NHNN. Most importantly, according to FiinGroup, the decline in lending
interest rates did not parallel the deposit interest rate, leading to the great improvement of the net profit
margin of the listed banks in Q2/2020.
The after-tax profit of the banking sector is forecasted by VietnamCredit to reach 16% in 2021,
demonstrating the great potential of this industry. However, the profitability of banks can be affected if
Circular 01/NHNN is amended, meaning that banks must make provisions for a maximum of 3 years
instead of not having to make the provision, as previously.
Table 5.1: Top

Establis- Stock
Company name ID Registration
hed years Symbol
1 JOINT STOCK COMMERCIAL BANK FOR 2008 VCB 0100112437

FOREIGN TRADE OF VIETNAM
2 VIETNAM JOINT STOCK COMMERCIAL BANK 2009 CTG 0100111948

FOR INDUSTRY AND TRADE
3 VIETNAM TECHNOLOGICAL AND 1993 TCB 0100230800
COMMERCIAL JOINT STOCK BANK
4 THE JOINT STOCK COMMERCIAL BANK FOR 1993 BID 0100150619

INVESTMENT AND DEVELOPMENT OF VIETNAM
5 MILITARY COMMERCIAL JOINT STOCK BANK 1994 MBB 0100283873
6 VIETNAM PROSPERITY JOINT-STOCK 1993 VPB 0100233583

COMMERCIAL BANK
7 VIETNAM BANK FOR AGRICULTURE AND 2004 - 0100686174
RURAL DEVELOPMENT
8 ASIA COMMERCIAL BANK 1993 ACB 0301452948
9 TIEN PHONG COMMERCIAL JOINT STOCK 2008 - 0102744865

BANK
10 SAIGON HANOI COMMERCIAL JOINT STOCK 1993 SHB 1800278630
BANK
p 10 banks in 2020
Chartered capital Employees Address WEBsite
VND 37,088,774,480,000 18,336 198 Tran Quang Khai - Ly Thai To http://www.vietcombank.com.vn/
Ward - Hoan Kiem District - Hanoi
VND 37,234,045,560,000 23,992 108 Tran Hung Dao - Cua Nam Ward http://www.vietinbank.vn/
- Hoan Kiem District - Hanoi

USD 2,000,000 10,729 Techcombank Tower 191 Ba Trieu - http://www.techcombank.com.vn/
Le Dai Hanh Ward - Hai Ba Trung

District - Hanoi
VND 34,187,153,340,000 25,529 BIDV Building 35 Hang Voi - Hoan https://www.bidv.com.vn/
Kiem District - Hanoi

VND 21,604,513,810,000 15,691 No. 21 Cat Linh - Dong Da District - https://mbbank.com.vn/
Hanoi
VND 25,299,679,660,000 27,037 No. 89 Lang Ha, Lang Ha Ward, Dong https://www.vpbank.com.vn/
Da District, Hanoi
VND 30,377,613 36,400 No. 2 Lang Ha - Thanh Cong Ward - http://www.agribank.com.vn
Ba Dinh District - City. Hanoi

VND 12,885,877,380,000 11,340 442 Nguyen Thi Minh Khai - Ward 05 http://www.acb.com.vn/
- District 3 - HCMC
VND 8,565,892,060,000 4,998 57 Ly Thuong Kiet - Hoan Kiem Dis- https://tpb.vn/
trict - Hanoi
VND 12,036,161,100,000 7546 77 Tran Hung Dao - Tran Hung Dao http://www.shb.com.vn
Ward-Hoan Kiem District - Hanoi

Real Estate Industry
Source: Vietnam National

Real Estate Association
260 60-80
Thousand VND/m2
Industrial zones in Average industrial zone rental

operation
In 2020, the industrial real estate segment witnessed a dynamic growth in many
provinces across the country such as Dong Nai, Binh Duong, Long An, Hai Duong,
Bac Giang etc., due to production shifting from China. Vietnam received a lot of
attention from international manufacturers due to its convenient location, low
manufacturing costs and expanded international integration (especially after EVFTA),
along with the efforts and positive results in the prevention of Covid-19.
According to CBRE, the asking price of industrial zones in the South increased from
20%-30%, and about 20% in the North compared to 2019. HCMC had the highest
average rental of industrial zone land in Vietnam, reaching 160 USD/m2/term, with
an occupancy rate of over 80%. In Hanoi, more than 60% of industrial zones are
100% occupied.
It is forecasted that in 2021 the demand for industrial real estate from both existing
and new investors will continue to increase, due to the on-going trend of factories
moving to Vietnam since the US-China trade war and the deployment of many logis-
tics projects serving the industrial real estate segment.
75 3-5
Million VND/m2
+ 70%
Industrial zones under Price of industrial real Average occupancy rate of
construction estate with infrastructure industrial zones
Chart 5.2: Industrial zones, average rental rates and occupancy rates in HCMC and Hanoi
Source: Colliers International
HO CHI MINH CITY HA NOI

USD/m2/ 1 Term USD/m2/ 1 Month
300 100% 250 105%
250 100%
80% 200
200 95%
60% 150
150 90%
40% 100
100 85%
20% 50
50 80%
0 0 75%
0%
Long Bien
Dong Anh
Tu Liem
Thach That
Me Linh
Soc Son
Chuong My
Phu Xuyen
District 9
District 12
Cu Chi
Binh Tan
Binh Chanh
Nha Be
District 7
Tan Phu
District 2
Thu Duc
Table 5.2: Top 10 in

compan
Establis- Stock
hed years Symbol
1 KHANG DIEN HOUSE TRADING AND 2007 KDH 0302588596

INVESTMENT JOINT STOCK COMPANY
2 NAM LONG INVESTMENT CORPORATION 2005 NLG 0301438936
3 PHAT DAT REAL ESTATE DEVELOPMENT 2004 PDR 0303493756

JOINT STOCK COMPANY
4 VINHOMES JOINT STOCK COMPANY 2008 VHM 0102671977
5 NO VA LAND INVESTMENT GROUP 1992 NVL 0301444753

CORPORATION
6 HA DO GROUP 2005 HDG 0100283802
7 SAI GON VRG INVESTMENT CORPORATION 2007 SIP 0305268812
8 VIET NAM CONSTRUCTION AND IMPORT - 2006 VCG 0100105616

EXPORT JOINT STOCK CORPORATION
9 BECAMEX IDC CORP. 2010 BCM 3700145020
10 VIGLACERA CORPORATION 2010 VGC 0100108173

ndustrial real estate
nies in 2020
VND 3,878,323,170,000 315 Unit 1&2, 11th Floor, Saigon Centre, 67 Le Loi Boulevard, http://www.khangdien.com.vn/
Ben Nghe, District 1, HCMC
VND 2,597,025,750,000 624 Floor 11, Capital Tower, No. 6, Nguyen Khac Vien Street, http://www.namlongvn.com/
Tan Phu Ward, District 7, HCMC
VND 2,219,909,230,000 114 Viettel Complex Building, 8th - 9th Floors, Tower B, 285 http://www.phatdat.com.vn/
Cach Mang Thang Tam Street, Ward 12, District 10,
HCMC
VND 33,495,139,180,000 6,129 No. 458, Minh Khai Street, Vinh Tuy Ward, Hai Ba Trung https://www.vinhomes.vn/
District, Hanoi
VND 9,695,407,970,000 1,975 313B-315, Nam Ky Khoi Nghia Street, Ward 7, District 3, https://www.novaland.com.vn/
HCMC
VND 1,186,812,890,000 1,583 No. 8 Lang Ha, Thanh Cong Ward, Ba Dinh District, http://www.hado.com.vn
Hanoi
VND 1,000,000,000,000 200 Lot TT2-1, Road D4, Dong Nam Industrial Park, Hoa Phu https://saigonvrg.com.vn/
Commune, Cu Chi District, HCMC
VND 4,417,106,730,000 6,130 VINACONEX Building, 34 Lang Ha, Lang Ha Ward, Dong http://www.vinaconex.com.vn
Da District, Hanoi
VND 10,350,000,000,000 5,238 No. 8, Hung Vuong Street, Hoa Phu Ward, Thu Dau Mot http://www.becamex.com.vn/
City, Binh Duong Province
VND 4,483,500,000,000 8,400 Level 16 & 17, Viglacera Tower, No. 1, Thang Long http://www.viglacera.com.vn
Avenue, Me Tri Ward, Nam Tu Liem District, Hanoi

Steel Industry
Chart 5.3: The production of finished steel in 2020
Source: VSA, Vietnambiz.vn
The production of finished steel

Tones
3,000
2,500
2,000
1,500
1,000
500
Construction Steel
Pipe
Pre-Painted galvanized &

0
Color coated steel
Rolled Steel
Hot rolled coil (HRC)
Total 2018 2019 2020
In the first half of 2020, due to the impact of the Covid-19 pandemic, many members of
the Vietnam Steel Association (VSA) experienced a decline in revenue. However, the
market started showing positive changes during the second half of 2020. For 2020 as
a whole, Vietnam's crude steel production and sales increased by 14% and 12%, and
exports grew by 3.55 times compared to the same period last year. The production
and sale of steel products was up by 2.7% and 1.4% respectively compared to 2019.
Chart 5.4: The sale of finished steel in 2020
Source: VSA, Vietnambiz.vn
The sale of finished steel

Tones
3,000
2,500
2,000
1,500
1,000
500
2018 2019 2020
With the ability to recover positively, the steel industry is expected to continue to experience double-digit
growth in 2021. Domestic steel demand is forecasted to trend upwards due to the increase of public invest-
ment, infrastructure construction and the recovery of the real estate industry (Vietcombank Securities
Company), especially the Vietnamese industrial real estate segment. Disbursement progress accelerated
since mid-2020 is also expected to have a positive impact on the domestic steel industry this year.
Table 5.3: Top 10 s

Establis- Stock
hed years Symbol
1 FORMOSA INDUSTRIES CORPORATION 2001 - 3600517557
2 HOA PHAT GROUP 1992 HPG 0900189284
3 VNSTEEL - SOUTHERN STEEL COMPANY 2003 - 3502269994

LIMITED
4 HOA SEN GROUP 2001 HSG 3700381324
5 CHINA STEEL AND NIPPON STEEL VIETNAM 2009 - 3501382588

JOINT STOCK COMPANY
6 POSCO-VIETNAM Co., Ltd. 2006 - 3500771158
7 COMPANYTON DONG A CORRPORATION 2009 - 3700255880
8 NAM KIM STEEL JOINT STOCK COMPANY 2002 NKG 3700477019
9 POMINA STEEL CORPORATION 1999 POM 3700321364
10 STEEL CORPORATION GANG THAI NGUYEN - 1959 TIS 4600100155

TISCO
steel companies in 2020
USD 700,000,000 3,500 Nhon Trach III Industrial Park, Hiep Phuoc Ward, Nhon -
Trach District, Dong Nai Province
VND 33,132,826,590,000 23,744 Pho Noi A Industrial Park, Giai Pham Commune, Yen My https://www.hoaphat.com.vn
District, Hung Yen Province
VND 1,000,000,000,000 570 Phu My 1 Industrial Park, Phu My Ward, Phu My Town, -
Ba Ria - Vung Tau Province, Vietnam
VND 4,446,252,130,000 7,209 No. 9, Thong Nhat Boulevard, Song Than 2 Industrial https://hoasengroup.vn
Park, Di An Ward, Di An City, Binh Duong Province
USD 574,000,000 850 My Xuan A2 Industrial Park, My Xuan Ward, Phu My http://csvc.com.vn/
Town, Ba Ria - Vung Tau Province
VND 3,971,760,000,000 590 Lot 1, Phu My II Industrial Park, Phu My Ward, Phu My http://poscovietnam.vn
Town, Ba Ria - Vung Tau Province
VND 975,098,260,000 1,500 No. 5, Street 5, Song Than 1 Industrial Park, Di An Ward, http://www.tondonga.com.vn/
Di An City, Binh Duong Province
VND 1,819,998,680,000 1,417 Lot A1, Street D2, Dong An 2 Industrial Park, Hoa Phu http://www.namkimgroup.vn/
Ward, Thu Dau Mot City, Binh Duong Province
VND 2,796,763,360,000 1,960 No. 1, Street 27, Song Than 2 Industrial Park, Di An http://www.pomina-steel.com/
Ward, Di An City, Binh Duong Province
VND 1,840,000,000,000 4000 Group 13, Cam Gia Ward, Thai Nguyen City, Thai http://www.tisco.com.vn
Nguyen Province
E-commerce Industry
Chart 5.5: Growth of B2C e-Commerce, 2014-20
Source: e-Commerce White Book 2020, compiled by VietnamCredit
Growth of B2C e-Commerce

14 40%
37%
12 35% 35%
11.8
30%
10
30%
10.08
25% 25%
8 23%
24%
8.06
20%
6 18%
6.20
15%
5.00
4
4.07 10%
2.97
Revenue (Billion USD) 2 5%
Growth (%)
0 0%
2014 2015 2016 2017 2018 2019 2020
With a growth rate of 18% and a market value of 11.8 billion USD, e-commerce is
one of the industries with positive growth in 2020, despite Covid-19. In the 6
consecutive years before 2020 e-commerce growth always hovered around
23%-37%. In 2019 the value of individual online shopping increased sharply, from
160 USD in 2015 to 225 USD. According to the National master plan on e-commerce
development for the period 2021-2025, e-commerce revenue will increase by
25%/year and reach 35 billion USD. Each Vietnamese consumer’s online shopping
footprint is estimated to reach 600 USD/year.
According to a survey conducted by Nielsen, the pandemic has increased the

purchasing demands of Vietnamese consumers on e-commerce platforms, with the
structure shifting from non-food items and fashion to necessity goods and food,
especially the segment of fast-moving consumer goods (FMCG).
Chart 5.6: Individual shopping value estimate in a year, 2015-25
Source: e-Commerce White Book 2020, compiled by VietnamCredit
Individual shopping value

650$
600 600$
550$
500$
450$
400$
350$
300$
250$
225
202
186 200$
170
160
150$
2015 2016 2017 2018 2019 2020
Although currently more than 80% of consumers prefer to make cash payments when receiving goods,
digital payments have seen positive changes and have strong growth potential. In 2020, according to
Nielsen Vietnam, the proportion of online shoppers using e-wallet payments accounted for more than 50%
of the total, up 28%. Shopee Vietnam also estimated that the number of orders paid via the Airpay e-wallet
increased 4 times, particularly with consumers over 50 years old.
It is forecast that in 2021 e-commerce will continue to develop significantly, despite the impact of the
pandemic, due to the potential demand of shoppers. This is also an opportunity for enterprises in the
e-commerce industry to restructure their operations and implement new business strategies.
Table 5.4: Top

compa
Establis- Stock
hed years Symbol
1 SHOPEE COMPANY LIMITED 2015 - 0106773786
2 MOBILE WORLD INVESTMENT CORPORATION 2004 MWG 0303217354
3 NGUYEN KIM TRADING JOINT STOCK 2006 - 0302286281

COMPANY
4 FPT DIGITAL JOINT COMPANY 2012 FRT 0311609355
5 TI KI CORPORATION 2010 - 0309532909
6 CHO TOT COMPANY LIMITED 2013 - 0312120782
7 MEDIAMART VIET NAM CORPORATION 2007 - 0102516308
8 HANSAEYES24 VI NA CO., LTD 2009 - 0309663757
9 SEN DO TECHNOLOGY JOINT STOCK 2014 - 0303217354

COMPANY
10 LAZADA EXPRESS VIETNAM COMPANY 2015 - 0313304214

LIMITED
p 10 e-commerce
anies 2020
VND 5,266,604,000,000 300 Floor 28, Lotte Central Building Hanoi, 54 Lieu Giai https://shopee.vn
Street, Cong Vi Ward, Ba Dinh District, Hanoi City
VND 2,761,518,810,000 50,000 No. 128, Tran Quang Khai Street, Tan Dinh Ward, District http://www.thegioididong.com/
1, HCMC
VND 800,000,000,000 5,600 No. 63-65-67, Tran Hung Dao Street, Cau Ong Lanh http://www.nguyenkim.com/
Ward, District 1, HCMC
VND 789,817,920,000 6,584 261-263 Khanh Hoi, Ward 02, District 4, HCMC https://fptshop.com.vn/
VND 208,311,680,000 1,545 29/1 Street 4, Quarter 3, An Khanh Ward, Thu Duc City, https://tiki.vn/
HCMC
VND 423,200,000,000 Room 1808, Floor 18, Me Linh Point Tower, No.2 Ngo http://chotot.vn/
Duc Ke Street, Ben Nghe Ward, District 1, HCM
VND 190,000,000,000 3,800 No. 29F, Hai Ba Trung Street, Trang Tien Ward, Hoan https://mediamart.vn/
Kiem District, Hanoi
VND 124,587,500,000 75 Room 1003, 10th Floor, Beautiful SaiGon 2 Building, No. https://www.yes24.vn/
77, Hoang Van Thai Street, Tan Phu Ward, District 7,
HCMC
VND 114,169,430,000 900 Floor 3, Building B, Business Incubator, Lot D.01, Tan http://www.sendo.vn/
Thuan Street, Tan Thuan EPZ, Tan Thuan Dong Ward,
District 7, HCMC
VND 6,000,000,000 1,000 Floor 19-20, Saigon Center - Tower 2, 67 Le Loi, Ben http://www.lazada.vn/
Nghe Ward, District 1, HCMC

Logistics Industry
Vietnam’s logistics industry was evaluated to be rapidly developing in recent years,

growing between 14% -16% according to the Vietnam Logistics Business
Association (VLA), with a market size of about 40-42 billion USD/year. Despite the
relatively severe impact from the Covid-19 pandemic in 2020, the industry still had
positive changes since mid-quarter 2/2020. According to data from the Ministry of
Industry and Trade, road and railway freight transport started to grow again since
May 2020. Compared to other transportation services, sea transport is less affected
by Covid-19.
The logistics industry is expected to continue showing potential for growth in 2021,
resulting from the gradual control of the pandemic and increased global demand for
commodities. In addition, the signing of new agreements such as RCEP and the
implementation of CPTPP and EVFTA agreements will contribute to facilitating good
exchange between Vietnam and other ‘strict’ markets. Along with the growth of
e-commerce and the explosion of digital technology, the e-Logistics segment has
been increasingly completed and developed to serve the growing demand of the
market during and post pandemic.
According to a report by Saigon Securities Inc (SSI), the seaports and logistics
industry will grow by 10% in 2021. Cai Mep - Thi Vai and Lach Huyen deep-water
ports will continue to increase the capability to accommodate large ships. These two
ports are expected to have a 20% increase in handling volume.
Vietnam’s seaport and logistics
160%
Chart 5.7: Vietnam’s seaport and
140% logistics industry in 2020
120%
Source: Bloomberg, SSI Research
100%
80%
60%
40%
VNIndex
20%
Industrials
0% Sea Ports & Logistics
T12-19 T1-20 T2-20 T3-20 T4-20 T5-20 T6-20 T7-20 T8-20 T9-20 T10-20 T11-20 T12-20
Transportation by road
125
120
Chart 5.8: Transportation by road
115
(million tons)
110
Source: Vietnam Logistics Report 2020,

105
Ministry of Industry and Trade
100
95
90
85
80
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T1 T2 T3 T4 T5 T6 T7 T8 T9
2019 2020
Transportation by sea
7.5
Chart 5.9: Transportation by sea

(million tons)
7.0
Source: Vietnam Logistics Report 2020,

6.5
Ministry of Industry and Trade
6.0
5.5
5.0
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T1 T2 T3 T4 T5 T6 T7 T8 T9
2019 2020
Table 5.5: T
compa
Establis- Stock
hed years Symbol
1 AIRPORTS CORPORATION OF VIET NAM 2012 ACV 0311638525
2 DKSH VIETNAM CO., LTD 2008 - 3700303206
3 GEMADEPT CORPORATION 1993 GMD 0301116791
4 VIETNAM NATIONAL SHIPPING LINES 1995 MVN 0100104595
5 IN DO TRANS LOGISTICS CORPORATION 2000 - 0301909173
6 PETROVIETNAM TRANSPORTATION 2002 PVT 0302743192

CORPORATION
7 EXPEDITORS VIET NAM COMPANY LIMITED 2013 - 0312545104
8 SAMSUNG SDS VIETNAM COMPANY LIMITED 2011 - 2300680991
9 VIETTEL POST JOINT STOCK CORPORATION 2006 - 0104093672
10 TRANSIMEX CORPORATION 1999 TMS 0301874259

Top 10 logistics
anies in 2020
VND 21,771,732,360,000 9,748 58 Truong Son, Ward 2, Tan Binh District, HCMC http://vietnamairport.vn
No. 23 Independence Avenue, Vietnam-Singapore
USD 3,300,000 4,700 Industrial Park, Binh Hoa Ward, Thuan An City, Binh http://www.dksh.com.vn/
Duong Province
VND 2,969,249,570,000 1,493 2bis-4-6 Le Thanh Ton, Ben Nghe Ward, District 1, http://www.gemadept.com.vn/
HCMC
VND 12,005,880,000,000 1,201 No. 1 Dao Duy Anh, Phuong Mai Ward, Dong Da District, http://vinalines.com.vn
Hanoi
VND 794,058,690,000 1,700 Number. 52-54-56, Truong Son Street, Ward 2, Tan Binh -
District, HCMC
VND 2,814,401,620,000 818 Level 2, PVFCCo Building, No. 43, Mac Dinh Chi Street, http://www.pvtrans.com/
Da Kao Ward, District 1, HCMC
USD 300,000 122 No. 182, 8th Floor, Flemington Building, Le Dai Hanh -
Street, Ward 15, District 11, HCMC
USD 900,000 300 Lot CN05, YP6 Road, Yen Phong Industrial Park, Yen -
Trung Commune, Yen Phong District, Bac Ninh Province
VND 830,479,260,000 8,000 No. 1, Giang Van Minh Street, Kim Ma Ward, Ba Dinh http://www.viettelpost.com.vn
District, Hanoi
VND 631,104,100,000 1092 Floor 9-10, 172 Hai Ba Trung, Da Kao Ward, District 1, http://www.transimexsaigon.com
HCMC
2021 Country Report 2021
References
The Constitution of the Socialist Republic of Vietnam 2013
The 13th National Party Congress’ Resolution
Law on Organizing The Government, Law No. 76/2015/QH13
Law on Investment 2020, Law No. 61/2020/QH14
Law on Enterprises 2020, Law No. 59/2020/QH14
Law on Science and Technology 2013, Law No. 29/2013/QH13
Law on Intellectual Property 2005, Law No. 50/2005/QH11
Law on Technology Transfer 2017, Law No. 07/2017/QH14
Law on High Technologies, Law No. 21/2008/QH12
Decree No. 118/QĐ-TTg
Annual economic assessment for Vietnam in 2020, March 2021 | National Economics University
Vietnam and Covid-19, March 2021 | Jacques Morrisset, Program Leader
Vietnam Logistics Report 2020 | Ministry of Industry and Trade
Port and Logistics Industry Outlook 2021: Expectations for a global recovery | SSI
Overcoming the first wave of Covid-19, Vietnam becomes the second most optimistic country in
the world | Nielsen
E-commerce White Book 2020 | Vietnam E-commerce and Digital Economy Agency
Vietnam E-business Index (EBI) Report 2020 | Vietnam E-Commerce Association
Vietnam Market View Q4 2020 | CBRE
Vietnam Quarterly Knowledge Report 2020 | Colliers International
Worldwide Governance Indicator, 2019 | World Bank
Rule of Law Index 2020 | World Justice Project
Global Economic Prospects Report, January 2021 | World Bank
World Economic Outlooks Report, October 2020 | IMF
Global Soft Power Index 2021 | Brand Finance
Global Innovation Index 2020 | World Intellectual Property Organization
Vietnam IT Landscape 2020 Report | TopDev

Dân số trong độ tuổi thanh niên ở Việt Nam – Những vấn đề đặt ra | Tạp chí Quản lý nhà nước
https://www.quanlynhanuoc.vn/2020/12/22/dan-so-trong-do-tuoi-thanh-nien-o-viet-nam-nhung-van-de-dat-ra/
Năm 2020 sẽ đưa 130.000 lao động đi làm việc ở nước ngoài | Thời báo Tài chính Việt Nam
http://thoibaotaichinhvietnam.vn/pages/xa-hoi/2020-01-11/nam-2020-se-dua-130000-lao-dong-di-lam-viec-o-nuoc-ngoai-81412.aspx
Lao động Việt Nam đi làm việc nước ngoài bị ảnh hưởng do dịch COVID-19 | Báo Lao Động
https://laodong.vn/cong-doan/lao-dong-viet-nam-di-lam-viec-nuoc-ngoai-bi-anh-huong-do-dich-covid-19-861999.ldo
Mỗi năm Việt Nam có khoảng 18.000 công dân kết hôn với người nước ngoài | Báo Điện tử Dân Sinh
https://baodansinh.vn/moi-nam-viet-nam-co-khoang-18000-cong-dan-ket-hon-voi-nguoi-nuoc-ngoai-20200306151117877.htm
GDP bình quân đầu người của Việt Nam năm 2020 đạt trên 10.000 USD | VietnamFinance
https://vietnamfinance.vn/gdp-binh-quan-dau-nguoi-cua-viet-nam-nam-2020-dat-tren-10000-usd-20180504224247942.htm
Hơn 22 triệu học sinh bắt đầu năm học mới 2019 – 2020 | Thời báo Tài chính Việt Nam
http://thoibaotaichinhvietnam.vn/pages/xa-hoi/2019-09-05/hon-22-trieu-hoc-sinh-bat-dau-nam-hoc-moi-2019-2020-75938.aspx
Thành tựu giáo dục và đào tạo qua kết quả Tổng điều tra dân số và nhà ở năm 2019 | Tạp chí Con số & Sự kiện
http://consosukien.vn/tha-nh-tu-u-gia-o-du-c-va-da-o-ta-o-qua-ke-t-qua-to-ng-die-u-tra-dan-so-va-nha-o-nam-2019.htm
Vietnam climbs up in UN human development index rankings | Vietnam Times
https://vietnamtimes.org.vn/vietnam-climbs-up-in-un-human-development-index-rankings-26560.html
Chỉ số phát triển con người của Việt Nam tăng vượt bậc | Báo Nhân Dân
https://nhandan.com.vn/binh-luan-phe-phan/chi-so-phat-trien-con-nguoi-cua-viet-nam-tang-vuot-bac-629395/
Thông cáo báo chí tình hình lao động việc làm quý IV và năm 2020 | Tổng cục Thống kê
https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/01/thong-cao-bao-chi-tinh-hinh-lao-dong-viec-lam-quy-iv-va-nam-2020/
Thất nghiệp ở Việt Nam - Vài nét thực trạng | Tạp chí Con số & Sự kiện
http://consosukien.vn/that-nghiep-o-viet-nam-vai-net-thuc-trang.htm
Chỉ số phát triển con người của Việt Nam tăng vượt bậc | Báo Nhân Dân
https://nhandan.com.vn/binh-luan-phe-phan/-
chi-so-phat-trien-con-nguoi-cua-viet-nam-tang-vuot-bac-629395/
Cổng Dịch vụ công quốc gia: Tiết kiệm gần 8.000 tỷ đồng/năm | Cổng thông tin điện tử BỘ KHOA
HỌC VÀ CÔNG NGHỆ
https://www.most.gov.vn/vn/tin-tuc/19369/-
cong-dich-vu-cong-quoc-gia--tiet-kiem-gan-8-000-ty-dong-nam-.aspx
Dân số trong độ tuổi thanh niên ở Việt Nam – Những vấn đề đặt ra | Tạp chí Quản lý nhà nước
https://www.quanlynhanuoc.vn/2020/12/22/dan-so-trong-do-tu-
oi-thanh-nien-o-viet-nam-nhung-van-de-dat-ra/
Đổi mới tư duy, cơ chế, chính sách để khoa học và công nghệ trở thành khâu đột phá đưa đất nước phát
triển mạnh mẽ | Báo Nhân Dân
https://nhandan.com.vn/khoahoc-congnghe/-
doi-moi-tu-duy-co-che-chinh-sach-de-khoa-hoc-va-cong-nghe-tro-thanh-khau-dot-pha-dua-dat-nuoc-phat-tr
ien-manh-me-632703/
GDP bình quân đầu người của Việt Nam năm 2020 đạt trên 10.000 USD | VietnamFinance
https://vietnamfinance.vn/gdp-binh-quan-dau-nguoi-cua-vi-
et-nam-nam-2020-dat-tren-10000-usd-20180504224247942.htm
Hơn 22 triệu học sinh bắt đầu năm học mới 2019 – 2020 | Thời báo Tài chính Việt Nam
http://thoibaotaichinhvietnam.vn/pag-
es/xa-hoi/2019-09-05/hon-22-trieu-hoc-sinh-bat-dau-nam-hoc-moi-2019-2020-75938.aspx
Khoa học Việt Nam đã giải quyết được nhiều thách thức của dịch Covid-19 | Báo Nhân Dân
https://nhandan.com.vn/khoa-hoc/khoa-hoc-viet-nam-da-gi-
ai-quyet-duoc-nhieu-thach-thuc-cua-dich-covid-19-458625/
Lao động Việt Nam đi làm việc nước ngoài bị ảnh hưởng do dịch COVID-19 | Báo Lao Động
https://laodong.vn/cong-doan/lao-dong-viet-nam-di-lam-viec-nuoc-ngoai-bi-anh-huong-do-dich-covid-19-861999.ldo
Mỗi năm Việt Nam có khoảng 18.000 công dân kết hôn với người nước ngoài | Báo Điện tử Dân Sinh
https://baodansinh.vn/moi-nam-viet-nam-co-kho-
ang-18000-cong-dan-ket-hon-voi-nguoi-nuoc-ngoai-20200306151117877.htm
Năm 2020 sẽ đưa 130.000 lao động đi làm việc ở nước ngoài | Thời báo Tài chính Việt Nam
http://thoibaotaichinhvietnam.vn/pages/xa-hoi/2020-01-11/-
nam-2020-se-dua-130000-lao-dong-di-lam-viec-o-nuoc-ngoai-81412.aspx
Thành tựu giáo dục và đào tạo qua kết quả Tổng điều tra dân số và nhà ở năm 2019 | Tạp chí Con số & Sự kiện
http://consosukien.vn/tha-nh-tu-u-gia-o-du-c-va-da-o-ta-o-qua-ke-t-qua-to-ng-die-u-tra-dan-so-va-nha-o-nam-2019.htm
Thất nghiệp ở Việt Nam - Vài nét thực trạng | Tạp chí Con số & Sự kiện
http://consosukien.vn/that-nghiep-o-viet-nam-vai-net-thuc-trang.htm
Thông cáo báo chí tình hình lao động việc làm quý IV và năm 2020 | Tổng cục Thống kê
https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/01/-
thong-cao-bao-chi-tinh-hinh-lao-dong-viec-lam-quy-iv-va-nam-2020/
Tình hình xuất khẩu, nhập khẩu hàng hóa của Việt Nam tháng 12 và 12 tháng/2020 - ThongKeHaiQuan : Hải Quan Việt
Nam
https://www.customs.gov.vn/Lists/ThongKeHaiQuan/ViewDe-
tails.aspx?ID=1901&Category=Ph%C3%A2n%20t%C3%ADch%20%C4%91%E1%BB%8Bnh%20k%E1%BB%B3&Group
=Ph%C3%A2n%20t%C3%ADch
Vietnam climbs up in UN human development index rankings | Vietnam Times
https://vietnamtimes.org.vn/vietnam-climbs-up-in-un-human-development-index-rankings-26560.html
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Written by:
Jimmy Le
Cyndi Khanh Ha
Huy Hoang Nguyen
Designed by:
Daniel Nguyen
Edited by:
Flip W.Jelly
2020-2021

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business information provider and credit rating agency in Vietnam.

Vietnam Country Report 2021 is a comprehensive report based on statistics and

forecasts of Vietnam's economic, political, social and technological situation. This

macroeconomy; Politics, Economics, Society and Technology. PEST provides both

The Country Report 2020 by VietnamCredit experts is expected to assist policy

makers, researchers, investors and large corporations in the decision-making

such as General Statistics Office (GSO), General Department of Vietnam Customs,

World Bank (WB), etc.

comment and synthesis of VietnamCredit expert’s opinions.

01. Political Environment

02. Economic Environment

03. Socio-cultural Environment

04. Technological Environment

02. Economic Environment

AEC ASEAN Economic Community

Political characteristics of Vietnam:

Top political posts

Vietnam’s political system consists of three components:

Communist Party of Vietnam;

Socialist state of Vietnam;

their decisions mainly on a collective basis.

next 10-year socio-economic development strategy (2021-2030).

2006, was not achieved.

Source: chinhphu.vn 18 Politburo members of 13th Party Central Committee

Image 1.1: Components of Vietnam’s political system

Vietnam is a country with high political stability. The Communist

Article 4 of the 2013 Constitution recognizes the leadership of the

The current Vietnamese political system includes these

Vietnam's leadership does not welcome political

Several international human rights organizations

Image 1.2: Structure of Vietnam’s political system

TOP POSTS IN THE STATE

RURAL DISTRICT DISTRICT

COMMUNE TOWNSHIP WARD COMMUNE TOWNSHIP WARD COMMUNE

STATE APPARATUS DIAGRAM

MINISTRIES / MINISTERIAL LEVEL

CHAMBER DISTRICT DISTRICT DISTRICT DISTRICT

Chart 1.1: Vietnam’s rule of law index 2020

Vietnam’s rule of law index 2020

2 ABSENCE OF CORRUPTION 0.45

3 OPEN GOVERNMENT 0.42

5 ORDER AND SECURITY

6 REGULATORY ENFORCEMENT 0.45 0.46

According to the WJP, Vietnam's rule Security and order in Vietnam

The regulatory quality of Vietnam in 2019

Image 1.3: Global regulatory quality 2020

Global REGULATORY QUALITY 2020

0-10th 10-25th 25-50th 50-75th 75-90th 90-100th No Data

The effectiveness of Vietnam's

Table 1.1: Rankings of corruption control in 2019

Rankings of corruption controL

Political environment of Vietnam: Political instability

Table 1.2: Rankings of political instability and threat of violence or terrorism

Rankings of political instability and threat

The score of Vietnam’s

Vietnam’s open governance

Open Government 0.52 0.79 0.68 0.51 0.46

Publicized laws and 0.44 0.75 0.74 0.44 0.54

Right to information 0.51 0.73 0.62 0.45 0.35

Civic participation 0.57 0.86 0.67 0.53 0.42

Complaint mechanism 0.58 0.83 0.71 0.61 0.54

Source: Jacques Morisset, Worldbank Report – March 2021