Vietnam's GDP per capita increased nearly 5 times after 15 years
According to Forbes, based on USD value, from 2006 to 2021, Vietnam's GDP per capita growth reached nearly 371%, an increase of nearly 5 times.
In this comprehensive analysis ofper capita income(GDP per capita) of Vietnam posted on November 23,Forbessaid the world economy has been through a difficult period since the pandemic broke out. But amid economic disruption, many countries still recorded impressive growth in per capita income from 2020 to 2021, including,Forbesspecial emphasis on Vietnam
GDP per capita increased impressively
Citing the latest data from the World Bank,ForbesVietnam's GDP per capita in 2021 was $3,694.02, up from $3,425.09 in 2019 - the year before the pandemic - and $3,526.27 in 2020.
"Vietnam is one of the few countries that has weathered the economic impacts of the pandemic quite well,"Forbesassessed and argued that in fact Vietnam's GDP per capita has increased sharply since 2005.
According to the magazine, from 2019 to 2020, Vietnam's GDP per capita growth rate was 2.01%, slower than the 6.13% in the 2018-2019 period, but this increase is still positive.
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Chart: Nhat Linh |
And if we consider speedGDP growthPer capita growth in the 2020-2021 period is 1.76% in local currency terms and 4.76% in USD terms.
Based on the value of USD, from 2006 to 2021, Vietnam's GDP per capita growth reached nearly 371%. In fact, growth at 371% means that Vietnam's GDP per capita increased nearly 5 times. However,ForbesThis impressive increase is more meaningful when considering the entire development process of Vietnam's economy during this period.
How has Vietnam's economy changed over the past 15 years?
Using data from the Observatory of Economic Complexity (OEC),Forbesanalyzed how the Vietnamese economy has changed over the past 15 years.
Back in 2006, Vietnam's largest export product was crude oil, accounting for 16.9% of export turnover, equivalent to 7.72 billion USD. But by 2020, crude oil exports accounted for only 0.54% of Vietnam's export turnover, equivalent to 1.64 billion USD.
Instead, broadcasting equipment became the largest export product, accounting for 14% of total export turnover, reaching 42 billion USD. Telephone exports ranked second, accounting for 7.14% of total export turnover, equivalent to 21.4 billion USD. Electronic components exports ranked third, accounting for 6.48% of total export turnover, equivalent to 19.4 billion USD. All three of these leading export items belong to the machinery and equipment category and are currently the largest export sector in Vietnam's total export value.
The contrast between Vietnam's export picture in 2020 and 2006 is clear. If in 2006, broadcasting equipment accounted for only 0.09% of total exports, with only 41 million USD, then in 2020 this figure was 42 billion USD.
Theexport marketVietnam's leading export markets have also grown significantly since 2006. In 2006, the US was Vietnam's leading export market, accounting for 19.8% of total export value, equivalent to 9.02 billion USD. By 2020, the US was still among Vietnam's leading export markets, but the proportion had increased to 25.6% of total export turnover (equivalent to 77 billion USD).
Some other export markets such as China have also increased significantly. If in 2006, Vietnam's exports to China accounted for 5.74% of the total turnover value (equivalent to 2.62 billion USD), by 2020, China had risen to the second position among Vietnam's leading export markets with 16.5% of the total turnover value (equivalent to 49.4 billion USD).
However, exports to Japan have declined. In 2006, exports to Japan accounted for 12.4% (equivalent to 5.68 billion USD), but by 2020, they accounted for only 6.79% of total turnover. Similarly, exports to Australia have also decreased sharply, from 8.32% in 2006 to 1.35% in 2020.
Over the past 10 years, from 2010 to 2020, the US has been Vietnam's fastest growing export market, with export value increasing by 62.3 billion USD, equivalent to an increase of 424%. The second fastest growing export market is China, with an increase of 42.7 billion USD, but in terms of percentage increase, it is 631%. In third place is South Korea, with exports to this market increasing by 16.4 billion USD over the past 10 years, equivalent to an increase of 503%.
ForbesVietnam’s GDP per capita growth is largely due to its increasingly diversified economy. Over the past 20 years, Vietnam has risen from 83rd to 61st place in the Economic Complexity Index (ECI), which measures the diversity and sophistication of production capabilities reflected in each country’s exports, according to the OEC.
Vietnam’s economic complexity ranking is much better than that of its neighbors Cambodia (ranked 102nd) or Laos (104th). In 2017, Vietnam’s economic complexity also surpassed Indonesia’s and has remained above it since.
Even when analyzing Vietnam's GDP per capita in 2015 USD terms, Vietnam's GDP per capita growth rate is still impressive. In 2015 USD terms, Vietnam's GDP per capita in 2006 was 1,650.63 USD, while in 2021 it was 3,373.08 USD, equivalent to an increase of 104.4% in 15 years.
"Overall, Vietnam has the most impressive GDP per capita growth among countries in the world. This trend reflects the dynamism of the Vietnamese economy and the country's remarkable development in recent years,"ForbesEvaluate./.