Over the past decades, Vietnam has made a shift from a highly centralized planned economy to a socialist-oriented market economy. As the planned economy of Vietnam lost the momentum for productivity and sustainable growth, like most of the Communist economies in the world after the Cold War period, nowadays the economy of Vietnam relies largely on foreign direct investment to attract the capital from overseas to support its continual economic rigorousness. Nowadays, Vietnam is in a period of integration into the global economy. During this transition period, the economy experienced rapid growth.
According to a forecast by PricewaterhouseCoopers, Vietnam may be the fastest-growing of the world's emerging economies by 2020, with a potential annual growth rate of about 10% in real terms, which would increase the size of the economy to 70% of the size of the UK economy by 2040. As we believe that Vietnam is one of the most promising economies of the world at this moment, it is a perfect destination for the International Financial Program 2016. Vietnam has several promising sectors, including but not exhausting Agriculture, Fishery and Forestry, Energy, mining and minerals, Industry and Manufacturing and Services and tourism.
Agriculture, Fishery and Forestry
Agriculture is fading as the most important economic sector in Vietnam. Vietnam is considered as one of the leading agricultural exporters of Southeast Asia and serves as an attractive destination for foreign investment in Southeast Asia. The primary agricultural areas are the Red River delta, the Mekong River delta, and the southern terrace region.
The wood processing industry has become one of key exports sectors in the country. Despite the difficulties of economic recession, the wood processing industry has been growing strongly. Another interesting sector is Vietnam’s fishing industry, which has abundant resources given the country’s long coastline and extensive network of rivers and lakes. Furthermore, the relaxation of the state monopoly on rice exports transformed the country into one of the top rice exporting countries in the world. Moreover, Vietnam is the world's second largest exporter of coffee, with the EU as one of the main importing markets.
Energy, mining and minerals
Mineral deposits, mainly in the north, include large reserves of anthracite coal, lime, phosphates, iron ore, barite, chromium ore, tin, zinc, lead, and gold. Coal production is the most important sector of the mining industry. With the exception of coal, the majority of current mining projects in the country are small in scope, representing an untapped opportunity for development on a larger scale.
Industry and Manufacturing
Food and beverage processing is the largest industrial activity in Vietnam. Also, Vietnam has long been a major producer of cement. The chemical industry has been growing, with fertilizer being its most important product. Steel is a major part of Vietnam’s heavy industry. Garments and textiles are of increasing importance; silk production revived in the 1990s after a period of decline. Production of electronic equipment and motorcycles has similarly expanded, and in the early years of the 21st century automobile manufacturing has been Vietnam’s fastest growing industry. Other important manufactures include footwear, tobacco products, paints, soaps, and pharmaceuticals.
Services and tourism
Formerly a neglected sector under central planning, services began to boom at the end of the 20th century. Since the early 1990s, the contribution of services to GDP has surpassed that of agriculture and matched or exceeded that of industry. By the early 21st century, services accounted for roughly one-fourth of total employment. Pressure from the U.S.-Vietnam bilateral trade agreement and the WTO resulted in a liberalization of the rules governing foreign participation in banking, telecommunications, and insurance that was expected to accelerate the service sector’s growth.
Also, tourism has become increasingly important. The combinations of unique landscapes and rich culture, from high mountains to extensive coastline, from modern cities to hundred-year-old handicraft villages become known to both domestic and overseas tourists. Vietnam attracted more than 5 million foreign visitors in 2010.