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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 more about Vietnam and V V G.  Please write to us  with your business-related questions when you consider a project in Vietnam and want to know more about us.

Current as of  the month reported, data sources include VVG original research,  General Statistical Office, MPI, International Herald Tribune, Vietnam Investment Review, Saigon Times Weekly, and Vietnam Economic Times.  Determining accuracy in these reported numbers is akin to reading tea leaves and is really anyone's guess, as the system lacks transparency.

WWW http://www.vvg-vietnam.com

Rates of Inflation & Currency Exchange

Current Annual Rate of Inflation: 4.0 (2003)¹ Year 2002: 2.92 [Chart VET Jan 2003]   By way of historical reference, in 1986 and the start of the "Doi Moi" or "renovation" program, inflation stood at 774.7%.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%. See prior reports  or above for a more complete, historical picture. 

Notes: Vietnam's GSO does not always agree with international observers. The State, when it can, generally quotes those numbers if finds most favorable.
1.  #585 STW 21Dec02

Current and Recent monthly rates of inflation:

Historical annual rates of inflation:

Current Rate of Exchange (buying VND using cash in new bills denominated in $100 or $50 only)
US dollar to Vietnam dong  1 : 15,395 (VNN 16Jan03) The black market rate: buying 100 and 50 US dollar notes for approximately 250 VND/US$ more, and selling dollars for 350 VND/US$ more, than the quoted official rate.

[Unofficial projections have been running that this will drop to below 16,000, a target that appears fast approaching. The introduction in year 2001 of the VND 100,000 "brown" note worth US$6.50 at the current exchange rate, helps to 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 worth US$1.90 and is now worth $1.30].

Outstanding External Debt in US$ millions (ADB): 1997 - 11,612;  1998 - 10.8; 1999 - 11.1; 2000 - 13.9;  2001 - 14.4;  2002¹ - 12,500

1. Gross external debt is put at US$14.0 billion or 38% of gross domestic product (GDP), reportedly mainly made up of low-interest ODA lending. Net external debt is put at 18.5% of currency external receipt. (Source Fitch Report via STW)

Index                                                                                                  

Balance of Trade ¹ US$ billions (VET Jan 2003 and other public reports)
Note: All publications in Vietnam are subject to strict State censorship and State propagandizing.  The numbers reported here are not always consistent with those from other services.  When we are aware of substantial discrepancies, we mention them.  We also pass on any explanation that is offered, which is very rare. 

Because changes are so frequent and unsubstantiated, we encourage readers to refer to prior reports on line  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.

1.  Adding to the wealth of the nation that is not reflected in these number are (a) 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. Recent reports indicate a decline in this number in 2001, and (b) Official Development Assistance ()DA) disbursements in 2001 that are reported at $1.7 billion

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

3. Full year (VET). 

4. The MPI through its media organ the VIR, reported different numbers.   In issue 529 published 3-9 December 2001,  November exports of $1.1 billion are claimed to bring total exports for the year to $13.8 billion, lower then the shorter period  reported by VET. VIR reports total imports grew $1.3 billion for November for a total of $14.5 billion, also substantially lower  than the sum reported by VET a month earlier. However, the Japan International Cooperation Agency (JICA) claims year 2001 exports were US$ 15.1 billion (547VIR1, 8-14Apr02).

5. Year 2002. (VET Jan 2003) 

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/ADB/IMF

1. The State reduced this figure from 7.5 to 7.1 in October 2001, which the World Bank supports.

2. Full year 2002 : 6.7% (#585 STW 21Dec02)

Index

GDP (converted to US$ billion)   VND 1 = US$  15,000* (constant) Reported in billion dollars

Index

GDP per capita (converted to US$)  VND 1 = US$  15,000¹ (constant) 

1 We caution readers that these numbers were previously converted at 1 US$ to 14,000 VND as a constant.

2 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) in 1999, 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.

3. It is claimed (VIR, Jan 2002 p10) that this reported range is determined under the Parity Purchase Power method (PPM).  No explanation is offered if this is the same as the United Nation's Purchase Power Parity (PPP) system, designed "to show the different levels of spending power on a country by country basis. A market basket of such items as average incomes, taxes, interest rates, insurance, utilities, gasoline, milk, newspapers and other typical expenses are compared and used to devise the PPP. The standard is based on the USA=100," or who the PPP is now made into a range and used by the State to report GDP.  For a more complete read on the PPP system developed by the United Nations, please write to VVG to receive a copy by E-mail.

4.  The more widely accepted sum for year 2001 is $399.

Index

Foreign Capital Investment ¹

Caveat: 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  or above 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.

These numbers do not include ODA disbursements that in 2001 was variously reported as either $750 million or $1.7 billion. These funds usually go towards infrastructure development.

As of December 20, 2002 (January 2003 VET)

All Nations: Current projects number 3,669 [vs. 3,617 last report]  with Total Investment Capital $39.105 billion [vs. $38.886 billion last report] and Implemented Capital of $20.739 billion [vs. $20.667  billion last month]. 

Where the numbers increase or decrease month-on-month, we've added a corresponding +/- respectively. Where no change is reported, no symbol follows the number.  We have no explanations for the changes but invite readers to review the previous month's Economic Indicators for further research. Determining accuracy in these reported numbers is akin to reading tea leaves as the system lacks transparency.

Top Twenty Foreign Direct Investor Nations : 

Notes:

1. There seems to have been substantial fiddling with the Total Implemented Capital.  While most if not all financial reports from the State are still considered overstated, undisguised errors (see Economic Indicators March 2002 and April 2002) and a report from Korea (see Vietnam Vignettes for May 2002) highlight huge discrepancies and the questionable nature of these financial reports from Vietnam. Clearly the nation still needs transparency in reporting (that means access to accurate -- both current and historical -- numbers as well as accountability in reporting) to build investor confidence.

2. It appears that the ranking of the United States has not always followed the apparent guidelines of this chart, the data for which itself is derived from the reports found in VET.  The USA first appeared in this chart in April 1999 ranked at No. 9 .   The USA ranked as high as 6th in May 2000.  The USA then dropped off our chart of 12 in February 2001 when it fell to the No. 13th spot. The USA remained in the 13th position as reported by VET even as its reported Total Investment (the purported method of ranking) exceeded the 12th position (held by Malaysia) since October 2001. One month after our June 2002 report first identified this discrepancy, the reported  investment from the USA dropped below that of Malaysia and was so reported in our July 2002 report. We can only report the numbers and positions as they are reported in the State controlled media. The reported originating source is the Ministry of Planning and Investment.

Index

Foreign Investment By Sector ¹ Total Foreign Investment by Sector (US$) 

Caveat: 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. 

Where the numbers increased or decreased month-on-month, we've added a corresponding +/- respectively. Where no change is reported, no symbol follows the number.  Where there is substantial change worthy of note, we mark that with a double + or - (as ++ or --). While the public and we are given no explanations for the changes, we do invite readers to review the previous reports in  Economic Indicators for further research.  

As of  December 20, 2002 (January 2003 VET)    

Notes:

1. There seems to be substantial fiddling with the Sector Investments.  While most if not all financial reports from the State are considered overstated, recent undisguised errors (see Economic Indicators for March 2002 and April 2002) and a report from Korea (see Vietnam Vignettes for May 2002) show huge discrepancies and the questionable nature of these financial reports from Vietnam. Clearly the nation needs transparency in reporting (that means access to accurate -- both current and historical -- numbers as well as accountability in reporting) to build investor confidence in order to attract more substantial western investors and projects to Vietnam. 

Index

 Foreign Investment By Province:  ¹

Caveat: 
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. 

The numbers here vary substantially from month to month. Sometimes the number of projects and capital increases but implemented capital decreases. The reverse also happens. It could be due to a reporting lag time or intentional fiddling with the numbers. There is no explanation offered to the public.

Where the following numbers increased or decreased month-on-month, we've added a corresponding +/- respectively. Where no change is reported, no symbol follows the number.  While we have no explanations for the changes, we do encourage readers to review prior reports on line as readers may have the need for historical accuracy.

Top Twenty Locations by Total Capital As of December 20, 2002 (VET January 2003) 

Notes:

1. There seems to be substantial fiddling with the Investments by Province numbers  While most if not all financial reports from the State are considered overstated, recent undisguised errors (see Economic Indicators for March 2002 and April 2002) and a report from Korea (see Vietnam Vignettes for May 2002) show the huge discrepancies and the questionable nature of these financial reports from Vietnam. The errors are less apparent in other reports, but in several locations the number of year-to-date new projects increase where the total number of projects hold fast or in several cases drop. Clearly the nation needs transparency in reporting (that means access to accurate -- both current and historical -- numbers as well as accountability in reporting) to build investor confidence and attract more substantial western investors and projects to Vietnam.

Index

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