Introduction

Good afternoon Everyone! We are the group 5.

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We're going to discuss the economic development of Vietnam.
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I'd like to take this opportunity to introduce ourselves: Andatuan, Rusheka H., De Leon, Trisha R.,
Doctora, Kianna Angel, Ehilla, Jarriz Cyril Q., and Alerta, Rynverly T.
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DE LEON
After Viet Nam War ended in 1975, Viet Nam’s economy was one of the poorest in the world, under the
government's resulting five-year central plans had seen extremely weak growth. The per capita GDP
was stuck between $200 and $300 by the middle of the 1980s.
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ALERTA
This results to a long-term battle: remaining causes of poverty in Vietnam
issues such as Ethnic Discrimination, a lacking Education System, Deteriorating Infrastructure and a
Weak Domestic Private Sector in the economy threaten its growth and stand as the remaining causes
of poverty in Vietnam.
The Committee for Ethnic Minority and Mountainous Area Affairs (CEMA), a ministry established by the
Vietnamese government to address these disparities, is working to improve this population's access to
social and educational opportunities.
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While statistics showing widespread poverty in Vietnam appear uplifting, they do not take into account
the fact that more than half of the population in ethnic minorities still lives below the poverty line. People
from ethnic minorities are perpetually socially and geographically isolated. They have historically had
less access to opportunities, which has led to a cycle that the nation is trying to end.
Failing infrastructure remains one of the large causes of poverty in Vietnam. Vietnam’s infrastructure
systems for energy, water, sanitation and telecommunication are far from where they need to be.
Without an efficient and reliable infrastructure, the private sector cannot grow, as individuals are unable
to reach the marketplace. Furthermore, until the water system and roadways improve, education cannot
flourish, as students are unable to attend school.
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The country’s SEDS (Socio-Economic Development Strategy) for 2016-2020 acknowledges the biased
education system, struggling market institutions and stagnant infrastructure development as causes of
poverty in Vietnam and articulates the need to accelerate progress. This acknowledgment is a clear
step forward in the nation’s fight against poverty.
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Then about the Increasing Inequality rate is threatening decades of progress of Vietnam. The combined
annual income of Vietnam's super-rich is more than enough to lift 3.2 million people out of poverty and
put an end to extreme poverty in the country. There has been a vast increase in the gap between the
rich and the rest. As the economic rules have been rigged in favor of rich and powerful elites.
The poorest people are being denied their fair share like:
1. Income Inequality - ang pinakamayaman ay kumukuha ng hindi katimbang bahagi ng kita. Ang
pinakamayaman ay may 10 percent ng mga tao ay may kita na 1.74 beses na mas mataas kaysa ang
pinakamahirap na 40 percent. Kumbaga The richest man in Vietnam earns more in a day than the
poorest Vietnamese earns in 10 years.
2. Economic Inequality - Inequality of voice and opportunity, with the poorest being excluded in favor
of the wealthy, worsens economic inequality. Millions of people, members of ethnic minorities because
people have e high living standards, small-scale farmers, undocumented workers, migrants, and clear
gender disparities on women since for them female workers have been more likely to be unskilled,
untrained, and limited to labor intensive and low-wage work. Male workers earn on average 33 percent
more than their female counter parts are more likely to continue living in poverty, hindi magkakaroon
ng access sa mga serbisyo at kapangyarihang pampulitika, at makaranas ng diskriminasyon.
As you can see here the Inequality rate in the country of Vietnam in 2020 is 0.373 it is good since Gini index of 0 which
reflects or represents equality. Like what have said ni sir throughout our discussion if 1 or more than 1 ibig sabihin na non
ay may inequality. Since it is 0 means equal siya so the household incomes of all households are equally distributed.

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DE LEON
However, later something changed in the progress of Vietnam. In 1986, the government introduced
“Duy mai”, it is a program of political and economic reforms initiated in Vietnam and transferred the
economy become a “socialist-oriented market economy”.
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One of the economies in the world with the fastest growth is Vietnam. The shift in labor allocation from
agriculture to the manufacturing and service sectors is held responsible for the country's economic
boom. Private investment, strong tourism, higher wages, and increased urbanization all helped Vietnam
grow. Today, Vietnam is currently one of the rising stars in the world of emerging markets.
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Key indicators in the last 10 years
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But first we have to know Why did Vietnam experience a low economic growth rate in the decade?
It is due to Unemployment Rate and High inflation
Enormous Difficulties in: Production, Imbalances in supply and demand, Inefficiencies in
distribution and circulation, soaring inflation rates, and rising debt problems. These conditions
prohibited the economy from growing. Because the government owned assets such as agricultural land,
resulting in low incentive and productivity. This which led to unsteady economic growth, high state
budget deficits, high inflation, and trade deficits.
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So how did this growth miracle happen in Vietnam after that experiece? According to analysts from the
World Bank and the think tank Brookings, Viet Nam’s economic rise can be explained by three main
factors: “First, it has embraced trade liberalization with gusto. Second, it has complemented external
liberalization with domestic reforms through deregulation and lowering the cost of doing business.
Finally, Vietnam has invested heavily in human and physical capital, predominantly through public
investments.”
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This is the GNP/GDP GROWTH of Vietnam
In the right side, it is the illustration View the Vietnam's Gross Domestic Product (GDP) from 2012 to
2022 in the chart:
Vietnam also is one of the largest economies in the world measured by the gdp take the set 37th place
amongst the countries. The Vietnam's gross domestic product advanced 13.67% in 2022. The strongest
pace of growth at least since 2000. Then Vietnam having emerged as a lower middle-income country
in 2010, all eyes are turned to its economy. Due to low base effects last two years, when the COVID-
19 broke out strongly. That is why they try to stabilize their economic performance and growth due to
the ongoing covid 19. The Output strengthened for industry & construction, services and agriculture.
as production and business activities gradually regained positive growth rate momentum, policies
recovered, and the government's socio-economic development has brought into full play.
In the left side, it is the illustration View the Vietnam's Gross National Product (GNP) from 2010 to 2021
in the chart:
GNP reached and have continues highest value in the observed period. Notably, the GNP continuously
increased over the last years. GNP growth is seen as an improvement in living standards of the
Vietnam.
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The service sector, which has been severely impacted by the economy over the past ten years, has
made a strong comeback, while manufacturing has continued to expand, exports have been steady,
and consumer spending has reached record highs.
The country's socioeconomic development in 2022, according to the general statistics office, has
prospered in most industries and fields, particularly the processing and manufacturing industry, retail
sales of consumer goods and services, and exports.
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By 2022, each of these had increased and gotten better, which helped Vietnam's economy grow more
broadly. This are the following:
1. Agriculture
2. Fishery
3. Forestry
4. Industry & Construction
5. Service Sector
6. Processing & Manufacturing
7. Mining Industry
 8. Financial
9. Banking
10. Insurance Activities
11. Transportation & Warehousing
12. Wholesale & Retail
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DOCTORA
INFLATION
Inflation Rate in Vietnam averaged 5.85 percent from 1996 until 2022, reaching an all time high of 28.24
percent in August of 2008 and a record low of -2.60 percent in July of 2000.
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Though the inflation is under control, the pressure of a rocketing inflation rate is present in 2022 and
2023. Economic experts have blamed the cost-push phenomenon for placing such pressure on the
Vietnam economy in the upcoming time. Further, Mr Nguyen Bich Lam – former director of the General
Statistics Office – has also identified 3 major reasons causing strain on inflation.
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1. Supply chain disruption
supply chain inflation is the main factor creating the biggest pressure on Vietnam inflation. With large
openness, production in Vietnam depends heavily on imported raw materials, costing 37% of total raw
materials spending of the whole economy. This figure amounted to 50,98% in the processing and
manufacturing industry.
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2. Escalation of world gas and oil prices
the Covid-19 pandemic and the Russia-Ukraine conflict has pushed up the prices of gas and oil. In the
first four months of 2022, the price of Brent oil increased by about 60% over the same period last year.
In March 2022, ING Financial Group forecasted the average price of Brent oil in 2022 at 96 USD/barrel.
Bloomberg forecasted 92 USD per barrel in 2022 and 86 USD per barrel in 2023.
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3.The spiking of aggregate demand due to monetary and fiscal policies
aggregate demand spiked in the context of supply chain disruptions. The Vietnamese Government is
directing to urgently implement the socio-economic recovery and development program with a scale of
350 trillion VND in the two years 2022 – 2023. In the 350 trillion VND support package, the fiscal policy
accounts for 83%, worth 291 trillion VND, while the monetary package only consists of 14%. The
remaining 3% belongs to other support packages.
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INTEREST
Interest Rate in Vietnam averaged 6.85 percent from 2000 until 2022, reaching an all time high of 15
percent in June of 2008 and a record low of 4 percent in September of 2020.
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ALERTA
Forex
Despite more than 20 years of general economic reform, Vietnam's foreign exchange (forex) market
has continued to be relatively underdeveloped. The Vietnamese dong (VND) has remained stable in
real terms against the dollar because of the government. The sharp increase in China's labor costs and
trade tensions between the USA and China are the main causes of Vietnam's bilateral and overall trade
balance. Foreign Direct Investment (FDI) exports to Vietnam were redirected as a result of the US tariffs
imposed on Chinese exports. Vietnam's ratio of foreign exchange reserves to imports is lower than that
of many other Asian countries, despite these recent trade surpluses.
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Unemployment
In the past ten years, Vietnam's economy has produced a large number of jobs, including those paying
subsistence wages that leave workers jobless because they come from developing nations, which
typically have lower unemployment rates than developed nations. Thousands of people losing their
jobs while there were 1.3 million unemployed people, an increase of 123.9 thousand during the
pandemic.
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EHILLA
Anchors/Pillars of the economy (major industries, products)
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Vietnam is one of the fastest–growing economies in the world. The country’s economic boom is
attributed to the shift in labour allocation from agriculture to the manufacturing and services sector.
Vietnam also received a boost from private investment, strong tourism, higher wages, and increased
urbanisation. The rapid expansion of industries, such as textile, electronics, and seafood production,
propelled export numbers to new heights. 
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1. Currency and Central Bank
The Vietnamese dong has been the country’s official currency since 1978. The dong was formerly
subdivided into 10 hao. These coins have not been used since 2014 in retail, although, some banks
may still accept them. 
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2. Industry and Trade
The agriculture, industry, and services sectors are the pillars of Vietnam’s economy. It is dominated by
large state-owned companies, including textiles, plastics, food, furniture, paper, tourism, and
telecommunications. 
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3. Survey and Rankings
Vietnam improved its overall score from 68.6 in 2019 to 69.8 in 2020 in the World Bank’s 2020 Ease of
Doing Business Ranking. However, the country slid down by one spot from 69th to 70th out of 190
countries. Meanwhile, Vietnam took a big leap from 90th freest in 2021 to 84th in 2022 in the Heritage
Foundation’s Index of Economic Freedom. With an overall score of 60.6 Vietnam belongs to the
“Moderately Free” category.
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4. Stock Exchanges and Capital Markets
The Ho Chi Minh City Stock Exchange (HOSE or HSX) and the Hanoi Stock Exchange (HNX) are
the two major stock exchanges in Vietnam. The Vietnam Stock Index or Vn Index serves as the
benchmark of HSX and is based on the total capitalisation of all listed companies in the exchange.
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5. Bond Market
Vietnam’s bond market has seen steady progress over the past years due to continuous initiatives by
the government. While government bonds still dominate the market, municipal bonds, corporate bonds,
and convertible bonds are now available.
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6. Real Estate Market
Vietnam’s real estate market has flourished over the years. The continued economic growth has led to
a surge in property prices, while increasing urbanization has created demand for housing in large urban
centers. Also the lack of investment options and high demand for apartments led to a housing market
boom.
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dealing with covid 19
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To bring the outbreak under control, Vietnam turned to the same strategies that had been successful
in ending earlier outbreaks: targeted lockdowns, travel bans, business closures, mass quarantines, and
widespread testing.
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1. Effective strategy is Targeted Lockdowns - Vietnam implemented mass quarantines in suspected
hot spots based on evolving epidemiological evidence over time (see Table 1). Vietnam entered a
nationwide lockdown on April 1. Initially, the lockdown was set for 15 days, but it was extended to 21
days in 28 out of 63 provinces. During the Da Nang outbreak in August, 10 provinces were locked
down.
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2. Effective strategy is Quarantine - From January 23 to May 1, 2020, over 200,000 people spent time
in a quarantine facility,26 but the numbers increased dramatically after the Da Nang outbreak. To
enable contract tracing of the more than 1.5 million people linked to the Da Nang outbreak, the
government mobilized resources to localities with poor health systems.27 Ho Chi Minh City conducted
contact tracing of everyone from Da Nang and stratified them into groups. People with respiratory
symptoms or those exposed to the three epicenter hospitals in Da Nang were placed in a centralized
quarantine facility and tested; others were isolated at home and monitored by local commune health
staff.
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ANDATUAN
dealing with oil prices
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what they do:
First, to assist ease demand, Binh Son Oil Refinery in Quang Ngai recently increased its productivity
since January, despite Nghi Son Oil Refinery cutting production by 20 percent.
Second, even though the government claims that all oil companies have enough gasoline, Hanoi and
Ho Chi Minh City have said that they have ample fuel reserves for up to 30 days.
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WELL KNOWN COMPANY in vietnam:
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Samsung Electronics Vietnam Thainguyen (SEVT)
(2020) The four Samsung facilities in Vietnam are expected to generate 67 billion USD in total sales in
2020, a 4% decrease from 2019. The combined income of these 4 factories has slightly decreased for
the second year in a row. The biggest income was reported by Samsung Electronics Vietnam
Thainguyen (SEVT), which decreased by 15% to 24 billion USD. Regarding revenue, the two facilities,
Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV), closely followed one
another (16.9 billion USD and 16.3 billion USD, respectively). (2022) Samsung Display Vietnam
reported $4.1 billion in revenue and $0.4 billion in profit. Four Samsung facilities generated $37.9 billion
in total sales and $2.71 billion in profit through the first six months of 2022.
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Its main product/s:
Samsung focuses in producing a wide range of consumer and business electronics, including
integrated systems, digital media players, semiconductors, and appliances. It now ranks among the
most famous names in technology and contributes to nearly one-fifth of all exports from South Korea.
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That is all for now thank you!
Quiz: https://forms.gle/rC4BLxJSFswB5s9n8
Possible answers:
Inequality rate
As you can see here the Inequality rate in the country of Vietnam in 2020 is 0.373 it is good since Gini
index of 0 which reflects or represents equality. Like what have said ni sir throughout our discussion if
1 or more than 1 ibig sabihin na non ay may inequality. Since it is 0 means equal siya so the household
incomes of all households are equally distributed.
The respond of inflation rate in Vietnam
Although the pandemic has passed its peak in Vietnam, businesses still suffer a heavy impact from the
disruption of supply chains. Due to the lack of input materials, many businesses have had to reduce
their production. The limited supply of goods has also led to escalating prices, especially for essential
products and healthcare services. The prolonged disruption of the supply chain also affects economic
growth, reduces competitiveness, and affects foreign investment and the ability of Vietnam to integrate.
That is why Businesses need to proactively take advantage of new trade deals to penetrate the global
supply chain more deeply. Since Vietnam fuel market is a competitive market with many suppliers, but
it is also under monitor by the government which often determines the price ceiling and the price
stabilizing fund. Bale Nghi Son Oil Refinery cutting production by 20 percent for oil. Then the
government ample fuel reserves for up to 30 days for them.