| Consultant Services | People | Business & Investment Articles | Business & Investment Property Development  | Handicrafts |

This space provides the latest data that is available to us on key financial indicators.  This is for the most part the official government picture on the economic climate in Vietnam.   Please read this data in conjunction with Vietnam Vignettes ,  the various Business Articles , and our Service pages in order to learn how V V G may be able to meet your specific needs.  Please write to us  with your business-related questions about how you wish to retain V V G.

Current as of  the month reported, data sources include VVG original research,  General Statistical Office, MPI, International Herald Tribune, Vietnam Investment Review, and Vietnam Economic Times

Rates of Inflation & Currency Exchange

Current Annual Rate of Inflation:  -0.2  [Chart VET September 2001]   NOTE:  There were eight consecutive  months that Vietnam had a drop in growth, ending in January this year.  Generally, a drop of two consecutive quarters in the rate of inflation is the signal of recession. By way of historical reference, in 1986 and the start of the "Doi Moi" or "renovation" program, inflation stood at 774.7%.  By 1995 that rate had dropped to 12.7%.

Current Rate of Exchange (exchanging cash in new bills denominated in $100 or $50 only)
US dollar to Vietnam dong  1 : 14,995 (VNN-14Sep01) The black market rate: buying 100 and 50 US dollar notes for VND15,200 and selling dollars for VND15,250

[Unofficial projections are that this will drop to below 16,000 this year. The recent introduction of the VND 100,000 "brown" note worth US$6.66 at the current exchange rate, will ease, if not speed, the rate of spending. When we first arrived in January 1994 the then very new VND 20,000 "green" note was then worth US$1.90 and is now worth $1.33].

Outstanding External Debt in US$ millions (ADB): 1997 - 11,612;  1998 - 14,861; 1999 - n/a; 2000 - n/a

Index                                                                                                  

Balance of Trade ¹ US$ billions (VET September 2001)

1.  Annual currency transfers from overseas Vietnamese adds an estimated $2.5 billion into the quiet economy, while smuggling adds approximately $1.5 billion more each year. These sums are not accounted for in this tabulation of only official reports.

2. Year 2000  [VET January 2001]. Numbers in blue are from Vietnam's GSO

3. 1st eight months of the year (VET).

Index

Growth Rate of Merchandise Exports as a percent of change from the prior year (ADB)

Change in Consumer Prices expressed as a percent of change from the prior year (ADB)

GDP Growth (%) Government Statistics Bureau/Asian Development Bank

1.  We cite these statistics for reference purposes. While the Ministry of Finance claims solid growth in the year 2000, international observers report  that the economy of Vietnam is slowing this year.
a. MOF  - 4.5% - VET - May 2000
b. MOF - 6.7% - VET - December 2000 
c. MOF - 6.75%; World Bank - 5.8%; IMF - 5.5% -  In a major report last month, the World Bank called Hanoi's long range target of a doubling of GDP and the creation of 15 million new jobs by 2010 "ambitious but attainable, provided it adopted bold and wide-ranging economic reforms. Reuters 12/26/00

Index

GDP (converted to US$ billion)   VND 1 = US$  14,000 (constant) Reported in billion dollars

Index

GDP per capita (converted to US$)  VND 1 = US$  14,000 (constant) Reported in actual US dollars

* This number is derived by taking the most recently announced GDP for year 2000 of US$30.6 billion and dividing by the estimated total population of 79 million. The reports of Vietnam's per capita Gross Domestic Product (GDP) are all over the mark.  VBJ, an early source of our numbers (in blue), is no longer published.  While VET has been reporting that the GDP per capita was at and above US$ 301 since 1996, Vietnam Investment Review in mid-year 20000 - a publication of the MPI - reports "the average income [broke] $250 a year for the first time....  Monthly income per person reached VND 295,000 ($21.07) last year, a 30.1 per cent increase on 1996 and equivalent to an annual $252.86" (455 VIR 4, 3-9 July 2000).  VIR cites figures from the General Statistics Department of Vietnam.  The actual number is as elusive as are most official numbers in Vietnam and will remain so until Vietnam's reporting becomes transparent. However, as the GDP numbers are substantially under those of the "news" media, we suspect the GDP numbers are the more accurate.

Index

Foreign Capital Investment  (September 2001 by VET)

Note: All publications in Vietnam are subject to strict State censorship and State propagandizing.  The numbers reported here change dramatically from time-to-time. The numbers of projects seem to decrease or increase without regard to the value of the projects or the steel in the ground. There is rarely an explanation offered. 

Because the changes are so frequent and unsubstantiated, we encourage readers to refer to prior reports on line - see top of page - for such historic details as they may need.  This is the most current and best data available from public sources, even though the accuracy of all these numbers is anyone's guess.

As of July 31, 2001 :

All Nations: Current projects number 2,876 [vs. 2,857 last report]  with Total Investment Capital $37.183 billion [vs. $37.102 last report] and Implemented Capital of $18.472 billion [vs. $18.036 last report].  

Top Twelve Nations : 

Notes: 

*The US continues in number 13th position with total projects at 127, Total Capital at 1.037, and implemented capital at 0.483

Index

Foreign Investment By Sector  Total Foreign Investment by Sector (US$) (September 2001 VET)    

Note: As above in Foreign Capital Investment, these numbers are the best available and are published by State controlled media. For the reasons earlier stated, they are highly suspect.  We encourage readers to review archived monthly reports as they may have the need to review the accuracy of reporting. 

As of July 31, 2001:

Index

Foreign Investment By Province:  (VET September 2001) 

Notes: 
1.  Accurate investment figures are not readily available, and when published, they lack transparency. There is no logical reason for apparent reporting discrepancies.  Starting in September 2000, the State again reported on Implemented Capital, earlier called Capital Committed .  Estimates of this number differ among multinational institutions but currently run at between $4 billion to $8 billion, or from 25% to 50% of the official government statistics offered here. 

2.  The numbers here vary substantially from month to month. Sometimes the number of projects and capital increase but implemented capital decreases. The reverse also happens. There is no explanation offered.

3.  We encourage readers to review archived monthly reports as they may have the need for historical accuracy.

Top Ten Locations by Total Capital As of July 31,  2001

Index

Economic Archives | Newsletter | Services | People | Southeast Asian Handicrafts  Articles | Property Development | FAQ

Write to us | or locate Our Offices