The development of Vietnam over the past 30 years is remarkable.

Political and
economic reforms since 1986 have promoted economic development, rapidly
turning Vietnam from one of the poorest countries in the world into a low-
middle-income country. From 2002 to 2018, GDP per capita increased 2.7 times,
reaching over $ 2,700 in 2019, with more than 45 million people out of poverty.
The poverty rate fell sharply from over 70% to below 6%. The majority of the
remaining poor in Vietnam are ethnic minorities, accounting for 86%.

In 2019, the Vietnamese economy continues to show a strong foundation and

high resilience, thanks to high domestic demand and export-oriented
manufacturing. Real GDP is estimated to increase by 7% in 2019, similar to the
growth rate in 2018, being one of the countries with the highest growth rates in
the region.

Due to the extensive economic integration, the Vietnamese economy was heavily
influenced by the COVID-19 pandemic, but also exhibited considerable resilience.
The initial medical impact of the epidemic is not as serious as in many other
countries, thanks to proactive countermeasures at both the central and local
levels. Macro and fiscal economy is stable with GDP growth estimated at 1.8% in
the first half of 2020, expected to reach 2.8% for the whole year. Vietnam is one
of the few countries in the world that did not forecast an economic recession, but
the expected growth this year is much lower than the pre-crisis forecast of 6-7%.
The impact of the ongoing COVID-19 crisis, however, is difficult to predict,
depending on the size and length of the outbreak. The pressure on public finance
will increase as budget revenue decreases while budget expenditure increases as
the stimulus package is activated to mitigate the impact of the pandemic on
households and businesses.

Thanks to a good foundation and if the COVID-19 epidemic is under control in

Vietnam as well as in the world, Vietnam's economy will recover by 2021. COVID-
19 also shows a need for strong reform. To help recover the economy in the
medium term, such as improving the business environment, boosting the digital
economy, and improving the efficiency of public investment, these are the main
issues that Vietnam needs to consider for rapid reform.