International Review: Socialist Republic of Vietnam
The new material of International Review series will tell about the world's leading supplier of cashew nuts, black pepper and coffee, one of the most educated countries in the world - the Socialist Republic of Vietnam.
The Socialist Republic of Vietnam (SRV) is a state in Southeast Asia. SRV is a parliamentary republic. The highest legislative body is the unicameral National Assembly, the leading role in the country is assigned to the Communist Party of Vietnam (CPV). Head of the Republic: Nguyen Phu Chong. Capital: Hanoi. Population: 96 million people (2017). Religion: Buddhists - about 60%, Catholics - 6%, Caoists - less than 2%, Taoists, Confucians and others. National currency: Vietnamese dong (VND).
Results of the Vietnamese economy in 2017:
- The nominal volume of GDP is $ 215.9 billion.
- GDP per capita - 2 307 US dollars.
- Inflation - 3.5%.
- External debt - 91.8 billion US dollars.
- Export - 213.8 billion US dollars.
- Import - 211.1 billion US dollars.
The main export items are mobile phones, electronic products, textiles, footwear, wood products, machinery and equipment, fish and seafood, rice, pepper, coffee, nuts.
The main items of import: machinery and equipment, electronics, raw materials for light industry, metals, petroleum products.
The key export position is mobile phones and accessories, as well as computers.
The main sectors of industry are: agricultural products processing, light industry, engineering, mining, metalworking, chemical fertilizer production, oil production and refining, mobile phone and electronics manufacturing.
Interesting fact. The literacy rate in Vietnam is one of the highest in the world - 94%.
The growth rate of industrial production in 2017 increased to 9.4% (2016 - 7.4%), the growth of the service sector continued - 7.44%. In the structure of the national industry, the production and distribution of electricity remain the dynamic sectors - 9.4% (2016 + 11.5%), as well as the production of water and electricity - 8.7% (2016 + 8%). Mineral extraction fell by 7.9% (2016 - a fall of 5.9%).
In the processing industry, the largest growth in 2017 was shown by such industries as electronics manufacturing (+ 32.7%), metallurgy (+ 17.6%); production of rubber and plastic (+ 14.4%), textiles, paper industry (+ 10.2%).
One of the most important branches of the Vietnamese economy is light industry. The country has over 2 thousand sewing factories, not even counting many fairly large sewing workshops. Most of the products are exported, the country is among five largest countries-producers and exporters of light industry products.
The main agriculture branches are: the cultivation (production) of rice, coffee, rubber, pepper, tea, nuts, soybeans, oranges, bananas, seafood, poultry.
Vietnam's foreign trade turnover amounted to $ 424.9 billion - an increase of 20.9%. Including, export - $ 213.8 billion (+ 21.1%), import - $ 211.1 billion (+ 20.8%). The favourable balance amounted to $ 2.7 billion.
The leading export markets remain: the USA - 19.5%, the EU countries - 17.9%, China - 16.5%, the ASEAN countries - 10.1%, Japan - 7.9%, the Republic of Korea - 7%.
The main importing countries: China - 27.7% (+ 16.9%), the Republic of Korea - 22.2%, ASEAN countries - 13.3%. In almost all the main export commodity positions of Vietnam in 2017 there was a significant increase.
In 2017, a record volume of foreign investment in the amount of $ 29.7 billion (+ 44.2%) was recorded. The leading investor countries are: Japan - $ 7.7 billion, the Republic of Korea - $ 4 billion, Singapore - $ 3.8 billion, China - $ 1.4 billion, Hong Kong - $ 740 million.
The main factor that makes Vietnam attractive for foreign investment capital is the availability of relatively cheap labor (in 2017, the average salary in the industrial sector was $ 220). The level of localization of industrial production with foreign capital does not exceed 10-15%. High dependency remains on the import of components, raw materials and consumables for local manufacturing industries.
Trade and economic cooperation of Vietnam and Belarus
According to the results of 2017, the turnover between Belarus and Vietnam amounted to 135.3 million US dollars (111.9% compared to 2016). The volume of Belarusian export amounted to 76.3 million US dollars (99.4%, with a target of 110%), import - 59.0 million dollars (133.4%). The balance of foreign trade was positive in the amount of $ 17.3 million (in 2016, a positive amount of $ 32.6 million). At the same time, Belarusian export to Vietnam excluding potassium in 2017 increased compared to the previous year by 6.7%.
Interesting fact. On the Vietnamese currency bill of 200 dongs of the 1987 sample, the Belarus tractor is depicted.
In January-May 2018, the trade between Belarus and Vietnam amounted to 53.9 million US dollars (113.1% compared to January-May 2017), including Belarusian exports - 33.1 million US dollars (118.3% ), the supply of Vietnamese products to Belarus - 20.8 million US dollars (105.7%). The balance of foreign trade was positive for Belarus in the amount of USD 12.3 million. Excluding potassium, exports in January-May 2018 increased by 38.4% compared to the same period in 2017 to $ 9.8 million.
The main items of the Belarusian export to Vietnam:
- potassium fertilizers;
- trucks and their parts;
- tractors, mining dump trucks;
- tires, polyamides;
- special purpose goods;
- bearings, engines;
- metal products;
- meat and dairy, alcohol products.
The main items of the Belarusian import from Vietnam:
- electronic circuits;
- seafood and fish;
In 2017, enterprises of the Republic of Belarus invested US $ 1.6 million in the economy of Vietnam. In Vietnam, there is one entity of the Belarusian trade chain - the Representative Office of MAZ JSC - the management company of the holding BELAVTOMAZ in the Socialist Republic of Vietnam (Laos, Cambodia, Thailand, Myanmar; from 2015 the Philippines, Indonesia, Malaysia).
Following the state visit of the President of the Socialist Republic of Vietnam Chiang Dai Quang to the Republic of Belarus in June 2017, agreements were reached to significantly intensify economic and industrial cooperation, increase trade and bring it to $ 500 million in 2019.
Exhibition and trade fair activities are actively carried out. There is exchange of business delegations. In 2009 - 2017, 11 Belarusian-Vietnamese business forums were held (5 in Belarus, 6 in Vietnam). In 2011–2016, 4 National Expositions of the Republic of Belarus were organized. The national exposition of the Republic of Belarus was organized in December 2018 in the city of Ho Chi Minh.
Interesting fact. About 40% of Vietnamese citizens have the name Nguyen.
Since October 2016, the Free Trade Agreement between the EEU member states and Vietnam entered into force. Belarus seeks to expand the range of exports of its products to Vietnam, including through products of the radio-electronic industry, petrochemical products, metal products, cosmetics, pharmaceutical products, fur, meat and dairy products, confectionery, malt and others.
Cooperation of FEZ Grodnoinvest and Vietnam
In 2017, the export of residents of the FEZ to the Socialist Republic of Vietnam amounted to 228.2 thousand US dollars. For 9 months of 2018 - 203.5 thousand US dollars, the growth rate is 106.7%. Main export positions: garments; generators, parts and accessories of motor vehicles.
Promising areas of cooperation for the enterprises of Grodno region can be the sphere of electronics, automotive components, chemical and petrochemical production, and light industry. Vietnamese business is actively looking for new suppliers of high-quality Belarusian products to a large local market with the prospect of expanding its sales network in China.
In December 2018, a round table on cooperation between Grodno region and the Socialist Republic of Vietnam was held in the administration of FEZ Grodnoinvest with the participation of more than 20 representatives of business and local government. The leadership of the Vietnamese Embassy in Belarus expressed interest in developing international cooperation between the two countries' businesses.
In case of Belarusian companies interest in cooperation with the business community of Vietnam, the administration of FEZ is ready to assist in establishing contacts and organizing negotiations. To do this, it is enough to write to firstname.lastname@example.org by email or call: +375 152 41-23-17.