Vietnam’s GDP per capita increases 5 times in 15 years
According to Forbes, based on the dollar value, from 2006 to 2021, Vietnam’s GDP per capita growth reached nearly 371%, an increase of nearly 5 times.
In a comprehensive analysis of Vietnam’s per capita income (GDP per capita) published on November 23, Forbes said that the world economy has experienced a difficult period since the pandemic outbreak. But in the context of economic disruption, many countries still record impressive growth in per capita income from 2020 to 2021, in which, Forbes especially focuses on Vietnam.
GDP per capita increased impressively
Citing the latest data from the World Bank, Forbes said Vietnam’s GDP per capita in 2021 is 3,694.02 USD. This is up from 3,425.09 USD in 2019 – the year before the pandemic and 3,526.27 USD in 2020.
“Vietnam is one of the few countries that has weathered the economic impacts of the pandemic quite well,” Forbes said, adding that the fact that Vietnam’s GDP per capita has increased sharply since 2005.
According to this magazine, from 2019 to 2020, Vietnam’s GDP per capita growth rate is 2.01%, slower than 6.13% in the period 2018-2019, however, this increase is still positive.
(Chart: Nhat Linh)
As for the GDP per capita growth rate in the period 2020-2021, the growth rate is 1.76% in terms of local currency value and 4.76% if using USD value.
Based on dollar value, from 2006 to 2021, Vietnam’s GDP per capita growth amounted to nearly 371%. In fact, growth of 371% means that Vietnam’s GDP per capita has increased nearly fivefold. However, Forbes believes that this impressive increase will be more meaningful when considering the development process of the Vietnamese economy during this period.
How Vietnam’s economy changed over the past 15 years?
Using data from the Observatory of Economic Complexity (OEC), Forbes analyzed how Vietnam’s 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 will only account for 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 turnover, reaching 42 billion USD. Phone exports ranked second, accounting for 7.14% of total export turnover, equivalent to 21.4 billion USD. Export of electronic components ranked third, accounting for 6.48% of the total turnover, equivalent to 19.4 billion USD. All three of these top export items are in the machinery and equipment category and are currently the largest export sector in total export value of Vietnam.
The contrast between Vietnam’s export picture in 2020 and 2006 is very clear. If in 2006, broadcasting equipment accounted for only 0.09% of total exports, with only 41 million USD, this figure in 2020 is 42 billion USD.
Vietnam’s top export markets have also grown markedly since 2006. In 2006, the US was Vietnam’s top export market, accounting for 19.8% of total export value, equivalent to 9 .02 billion USD. By 2020, the US is still among the top export markets of Vietnam, but the proportion has 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 (equivalent to 2.62 billion USD), by 2020, China has risen to the 2nd position in the export markets. Vietnam’s leading export with 16.5% of total turnover (equivalent to 49.4 billion USD).
However, Japanese exports declined. If in 2006, exports to Japan accounted for 12.4% (equivalent to 5.68 billion USD), by 2020 it will only be 6.79% of the total turnover. Similarly, exports to Australia also dropped sharply, from 8.32% in 2006 to 1.35% in 2020.
In the past 10 years, from 2010 to 2020, the US is 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, in the past 10 years, exports to this market have increased by 16.4 billion USD, equivalent to an increase of 503%.
According to Forbes, Vietnam’s GDP per capita growth is largely due to the increasingly diversified Vietnamese economy. According to the OEC, over the past 20 years, Vietnam has risen from 83rd to 61st place in the Economic Complexity Index (ECI), an index assesses the diversity and sophistication of production capacity embodied in each country’s exports.
Vietnam’s economic complexity ranking is much better than that of neighboring countries such as Cambodia (ranked 102) or Laos (ranked 104). In 2017, Vietnam’s economic complexity also surpassed that of Indonesia and has remained above it ever since.
Even when analyzing Vietnam’s GDP per capita in dollar terms in 2015, Vietnam’s GDP per capita growth rate is still impressive. Calculated in USD value in 2015, Vietnam’s GDP per capita in 2006 was 1,650.63 USD, in 2021 it is 3,373.08 USD, equivalent to an increase of 104.4% in 15 years.
“Overall, Vietnam has had the most impressive GDP per capita growth of any country in the world. This trend reflects the dynamism of the Vietnamese economy and its remarkable development over the years”, Forbes assessed.
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