Viet Nam

Over the past few decades, economic and political reforms have transformed Viet Nam from being one of the world’s poorest to a lower-middle income country. During this period, its economy has been among the fastest growing in the world. Poverty rates have been dramatically reduced, and there have been major improvements in education, health, and infrastructure. Nearly the entire population now has access to electricity. GMS cooperation plays an important role in Viet Nam’s development. Viet Nam is looking to develop a more dynamic market economy that can compete globally and deliver sustained and equitable growth. Other national priorities include achieving environmental sustainability, addressing climate change challenges, and ensuring that development gains better reach ethnic minorities and other vulnerable groups.


Quick Facts

Population 99.46 million (2022)
Average Annual Population Growth Rate 1.1% (2017-2022)
GDP at PPP (current international dollars) 1.32 trillion (2022)
Annual Growth Rate of GDP (%) 8 (2022)
GDP per capita at PPP (current international dollars) 13,457 (2022)


Sources: ADB Basic Statistics 2023, World Development Indicators (accessed July 2023)

Agriculture

Viet Nam has made great progress in agriculture over the past 30 years, and it is now a leading global exporter of rice, coffee, pepper, cassava, and rubber. Viet Nam’s agribusinesses are active investors in the GMS, particularly in Cambodia, the Lao PDR, and Myanmar. The government’s agricultural priorities include using land and water resources more sustainably, improving food safety, and focusing on higher-value crops. Viet Nam is also building climate resilience in the agriculture sector, especially to prepare for the projected rise in the sea levels of the productive Red River and Mekong deltas.

Energy

With significant coal, oil, and natural gas resources, as well as a large hydropower system, Viet Nam is mostly energy self-sufficient. The country also has untapped renewable energy potential from biomass, solar, and wind sources. It has made excellent progress in ensuring rural access to electricity, with almost 100% of households now connected. Looking ahead, Viet Nam has new policies and strategies in place for increasing renewable energy production and improving energy efficiency.

Environment

Viet Nam’s forested mountain ranges cover much of the country before giving way to the flatlands and waterways of the Mekong Delta, in the far south. The Mekong Delta is the country’s “rice bowl,” but it also has much biodiversity, including many aquatic species. In recent years, Viet Nam has made major investments in biodiversity conservation. It has also implemented a national payment scheme for users of forest ecosystem services—such as hydropower companies that rely on water—to compensate local communities for protecting forest watersheds. Vulnerable to sea-level rises, droughts, and floods, Viet Nam is strengthening its climate change resilience.

Human Resource Development and Health

Human resource development has helped drive Viet Nam’s impressive economic growth in recent decades. Furthering human resource development is a key pillar of the country’s socioeconomic development strategy. Priorities include strengthening higher education and vocational training, and investing more in science and technology. Aided by its strong grassroots health network, Viet Nam has made impressive progress in terms of public health. Infant and child mortality rates, as well as maternal mortality ratio, are greatly reduced, and life expectancy continues to improve. The government is boosting its public health spending as the country continues its march toward universal coverage.

Information and Communication Technology

Viet Nam recognizes that ICT has a vital role to play in helping the country achieve its socioeconomic development targets. Recent investments in telecommunications infrastructure have increased access to mobile phone and internet services, with almost half of the country’s population now using the internet. Viet Nam has ambitious plans to further develop this sector, including investing in fiber-optic cables and expanding 4G internet services. The country is also looking to increase the use of ICT in education and government.

Tourism

With its rich culture and abundant historical and natural assets, Viet Nam now draws more than 10 million international visitors per year. Among its leading attractions are the stunning limestone pillars of Ha Long Bay, the beach resorts of Phu Quoc Island, and the Imperial City in Hue. The two main cities—Ho Chi Minh and Ha Noi— are also popular destinations. Viet Nam is trying to increase tourism’s contributions to the economy by promoting investments in the hospitality industry and targeting higher-spending markets. It is also prioritizing better tourism site protection and management.

Transport

In recent years, Viet Nam has invested substantially in transport infrastructure, and is now reaping the benefits. Today, the country’s road network provides rural communities with better access to markets, helping to reduce poverty. New roads, seaports, and airports have stimulated regional integration and trade, and the government has ambitious plans to further modernize and enlarge the transport infrastructure. Priorities include upgrading and expanding highways and railways, building a new international airport near Ho Chi Minh City, and creating metro systems. Viet Nam is also actively looking to climate-proof its transport investments.

Transport and Trade Facilitation

Viet Nam is a major global exporter of rice and other agricultural products. The country relies on its GMS partners for more than a third of its imports, and its biggest trading partner is the PRC. The country is now working with its GMS partners to ensure safer and more efficient cross-border transport and trade procedures. For instance, it now has a “single-stop” inspection system at the Lao Bao–Dasavanh border crossing with the Lao PDR, and has been working with the PRC and the Lao PDR to protect crops, livestock, and consumers against trade-related health hazards.

Urban Development

Viet Nam is the only GMS country that has two primary cities: Ha Noi in the north and Ho Chi Minh in the south. Although urban population growth has surged during the past quarter century, nearly two-thirds of Viet Nam’s people still live in the countryside. Viet Nam has a long-term strategy of building a national network of modern urban centers. Currently, much effort is going into developing the country’s secondary cities, where the government and partners are working together to enhance basic infrastructure, improve climate resilience and environmental management, and stimulate economic growth.


GMS Program Officials and Contacts in Viet Nam

  • PHAM Hoang Mai (Dr)
    National Coordinator Director General Foreign Economic Relations Department Ministry of Planning and Finance
  • NGUYEN Viet Ha (Mr)
    Official Foreign Economic Relations Department Ministry of Planning and Finance

Read More

Greater Mekong Subregion: 25 Years of Partnership

ADB and Viet Nam: Fact Sheet

ADB's investment will fund the working capital to expand Australis' operations at Van Phong Bay in central Viet Nam and support the development of a second regional production hub in southern Viet Nam.

ADB Invests in Ocean-Based Aquaculture in Viet Nam

 The Asian Development Bank (ADB) and Australis Holdings, Inc. (Australis) signed a $15 million convertible note to promote climate-resilient, ocean-based barramundi and seaweed aquaculture in Viet Nam.


This project delivers a high-impact and sustainable transport solution for Viet Nam while helping it meets climate goals and continue to support climate finance in the region. Photo:Vinfast

ADB Leads $135 Million Climate Financing Package to Support Electric Mobility in Viet Nam

The Asian Development Bank (ADB) mobilized a $135 million financing package for VinFast Trading and Production Joint Stock Company (VinFast) for manufacturing Viet Nam’s first fully-electric public transport bus fleet and first national electric vehicle (EV) charging network. The assistance will support Viet Nam’s efforts to achieve net-zero greenhouse gas emissions and expand high-tech manufacturing industries.


ADB’s new partnership strategy for Viet Nam is anchored on the recognition that the country needs tailor-made solutions to best meet its development challenges. Photo by ADB. 

ADB Launches New Country Partnership Strategy for Viet Nam

The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Viet Nam covering the period 2023–2026. The strategy will help promote inclusive, green, and private sector-led development in Viet Nam and build a foundation for the country to achieve its goal of becoming upper middle-income by 2030.


Power lines from the 1070 MW Nam Theun 2 hydropower plant in Lao PDR. 95% of the power produced by the plant is exported to Thailand, and the rest are consumed locally. Photo by Ariel Javellana/ADB.

Lao PDR Ramps Up Electricity Exports to Viet Nam

The Government of the Lao People’s Democratic Republic is increasing its electricity exports generated from its hydropower projects to its neighbors in the Greater Mekong Subregion, including Viet Nam. Lao PDR and Viet Nam have signed MoUs targeting to export 8,148 MW from Lao PDR to Viet Nam by 2030. Lao PDR also signed contracts with Viet Nam Electricity (EVN) to implement 25 projects with a combined capacity of 2,180 megawatts.  


Migrant worker operates an electric loom in a textile mill. ©ILO/Areeluck Phankhian via Flickr

Improved Labor Management Initiatives Aim to Attract More Migrant Workers to Thailand

Mr. Pairoj Chotikasathien, head of the Thai Labour Ministry’s employment department, shared that the Thai Cabinet has approved improved labor management measures to address the gap in migrant worker employment. These measures include (i) allowing documented workers to stay until February 2025; and (ii) allowing undocumented workers to register and work until the same date. 



49th Meeting of the Greater Mekong Subregion (GMS) Tourism Working Group (TWG-49)

The Government of Lao People's Democratic Republic (Lao PDR) with assistance of the Mekong Tourism Coordinating Office (MTCO) virtually convened the 49th Meeting of the Greater Mekong Subregion (GMS) Tourism Working Group (TWG-49) on 12 May 2022. The meeting was attended by representatives of the National Tourism Organizations (NTOs) of the six GMS countries, MTCO, and the Asian Development Bank (ADB).




Pages