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Developing economies
Sources: CIA, World Bank, The Saigon Times, EY, WTO, UN, WEF, Transparency International
Area
Population
Population density
Gross domestic product
Total (nominal)
GDP
, per capita (
PPP
)
GDP
growth forecast
2015
GDP
growth forecast
2016
Public debt to
GDP
Balance of trade (surplus)
Unemployment rate
331,210 km²
93.4 million
289 people per km²
US$171.4 billion
US$4,000
5.6%
5.8%
48.2 %
US$781 million
1.3%
Capital city
Hanoi
Main language
V
ietnamese
Attractiveness of economy to
business
Vietnam ranked
78
out
of
189
countries on the World Bank’s
Doing Business
2015
report,
receiving high marks for dealing
with construction permits and
registering property, yet low marks
for paying taxes
.
Top export markets
European Union
17
.
7
%
United States
17
.
2
%
Japan
11
.
4
%
Foreign direct investment
Vietnam recorded
FDI
(net inflows)
of
US$8
.
4
billion in
2012
,
a
12
.
5
% increase over the
previous year.
Corporate income tax
Corporations involved in the exploration and exploitation of
oil and gas, along with the exploitation of rare precious natural
resources, are subject to a higher corporate tax rate than
other companies, ranging from
32
% to
50
%. The standard
corporate income tax rate is set to decline to
20
% from
22
%
on January
1
,
2016
.
Indirect taxes
Vietnam has a value-added tax of
10
%, though certain areas, such
as medical and agricultural goods, have a reduced rate of
5
%.
In addition, there is a consumption tax ranging from
10
% to
70
%
on goods, such as cigarettes, beer and cars, as well as casinos
and golf courses.Vietnam also has environmental and natural
resources taxes.
Other taxes
Capital gains stemming from the sale of shares are subject
to a tax rate of
22
%, which will decline in January
2016
to
20
%. There is also a withholding tax of
5
% on interest.
Administration
Vietnam ranked
173
in the area of paying taxes in the World
Bank’s
Doing Business
2015
report. It takes companies
872
hours,
on average, each year to prepare, file and pay their taxes in
Vietnam.
22%
Corporate income
tax rate
For more
information:
Worldwide
Corporate
Tax Guide
2015
93%
Adult literacy rate
Hanoi
Infrastructure
Vietnam’s infrastructure ranked
81
out of
144
countries in the
World Economic Forum’s
Global
Competitiveness Report
2014
–
2015
,
with the quality of its roads, railways,
ports and air transport receiving a score
of 4 or less (7 is best). It is turning
to public-private partnerships for new
infrastructure projects to make
Vietnam more attractive to investors.
Education
Vietnam has a literacy rate
of
93%
. A
UNICEF
survey of
young people found that
17
%
of respondents had only
completed elementary school,
while another
50
% had
completed just lower
secondary school.
Legal system
Vietnam’s latest constitution was
adopted on
15
April
1992
, and has since
been amended. The legal system is based
on civil law. The president, the chief
of state, and the prime minister, who
is the head of government, lead the
executive branch. The legislative branch
is composed of the National Assembly.
The Supreme People’s Court is the
highest court in Vietnam.
International organization
membership
Asian Development Bank (
ADB
),
Asia-Pacific Economic Cooperation
(
APEC
), G-
77
, International Finance
Corporation (
IFC
), Organisation
internationale de la Francophonie (
OIF
),
United Nations (
UN
), World Trade
Organization (
WTO
), among others
Transparency International’s
Corruption Perceptions Index:
31 out of 100 (100 is very clean)
Vietnam
The
manufacturing
sector accounts for
of exports
70%
IAFEI Quarterly | Issue 29 | 50