"Vietnam's GDP per capita growth is the most impressive in the world. This reflects the dynamism of Vietnam's economy and its outstanding development over the years," Forbes emphasized in a recent article.
Vietnam's GDP per capita growth rate is 1.72%/year
The world economy has gone through an extremely difficult period since the outbreak of the Covid-19 pandemic. However, many economies still record growth and Vietnam is an example.
According to the latest data from the World Bank, Vietnam's GDP per capita in 2021 reached $3,694.02.
"It can be seen that Vietnam is one of the few economies that has survived the impact of the pandemic," Forbes assessed.
Accordingly, in 2019, Vietnam's GDP per capita was $3,425.09, then increased to $3,526.27 in 2020, and $3,694.02 in 2021. In fact, GDP per capita of Vietnam has increased dramatically since 2005.
The World Bank calculates Vietnam's GDP per capita growth in constant local currency. Therefore, if Vietnam's annual GDP per capita growth rate is calculated in dollar terms at the moment, the data will not match the annual growth rate provided by the World Bank.
For the period 2020-2021, the GDP per capita growth rate of Vietnam is 1.72%/year if calculated according to the fixed value of Vietnam dong. In current dollar terms, the annual GDP per capita growth rate is 4.76%.
From 2019 to 2020, Vietnam's annual GDP per capita growth rate was 2.01%. According to Forbes, although the growth rate during this period slowed down compared to the annual growth rate of the period 2018-2019 (6.13%), it is still extremely positive.
From 2006 to 2021, Vietnam's GDP per capita increased by nearly 371%, corresponding to an increase of nearly 5 times. According to Forbes, Vietnam's GDP per capita has grown extremely impressively.
What’s behind such impressive growth?
According to data from OEC, in 2006, Vietnam's largest export product was crude oil, accounting for 16.9% of the export turnover, equivalent to $7.72 billion. However, by 2020, crude oil accounted for only 0.54% of Vietnam's export turnover, equivalent to $1.64 billion. Instead, broadcasting equipment became Vietnam's largest export item at this time, accounting for 14% of export turnover, or $42 billion. Coming out second was phones, accounting for 7.14% of the total export value, equivalent to $21.4 billion. Export of electronic components ranked third, accounting for 6.48% of total export value and equivalent to $19.4 billion.
Vietnam's export markets have also grown markedly since 2006. Back in 2006, the United States was Vietnam's top export market, accounting for 19.8% ($9.02 billion) of total export value. By 2020, the figure has increased to 25.6% ($77 billion) of Vietnam's total export value.
Besides the United States, China is also one of Vietnam's leading export markets. In 2006, Vietnam's exports to China accounted for 5.74% ($2.62 billion) of total export value. By 2020, China rose to the second position among Vietnam's largest export markets, accounting for 16.5% ($49.4 billion) of total export value.
From 2010 to 2020, the fastest growing export market of Vietnam was the United States. Accordingly, the export value of Vietnam to this country increased by $62.3 billion, corresponding to a growth rate of 424%. However, the second fastest growing export market - China - saw an increase in export value of $42.7 billion, equivalent to a growth rate of 631%. The third fastest growing export market of Vietnam is South Korea, with export value increasing by $16.4 billion, equivalent to a growth rate of 503%, far exceeding the corresponding growth rate between Vietnam and the USA.
Vietnam's GDP per capita growth can be largely attributed to the increasingly diversified economy. According to the OEC, over the past 20 years, Vietnam's ranking on the Economic Complexity Index (ECI) has increased from 83rd to 61st in the world.
Vietnam's economic complexity ranking is much better than that of neighboring countries like Cambodia (ranked 102nd) or Laos (ranked 104th). In 2017, Vietnam's economic complexity surpassed that of Indonesia.
"Overall, Vietnam's GDP per capita growth is the most impressive in the world. This reflects the dynamism of Vietnam's economy and its outstanding development over the years," emphasized Forbes.
Source: Forbes (provided to FEBIS by VietnamCredit)
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