Vietnam : A Lower Middle Income Country Of The East Asia & Pacific Region

838 Words Sep 14th, 2016 4 Pages
Vietnam is considered to be a lower middle income country in the East Asia & Pacific region. As of February of 2016, Vietnam has a population of 94.08 and is 1.27% of the total world population. Vietnam’s economy has been growing since 1990 through free trade and programs to develop the economy. The country is transitioning from a developing, agrarian economy to one more urban and industrialized. The country hopes to expand their contributions to the global marketplace from low cost labor and agricultural products to more innovative and higher valued products and services. In 2015, exports were 89.8% of the country’s GDP, while imports were 89% of GDP (WorldBank). To compare, exports were just 36% of GDP and imports were 45.3% in 1990.

The currency of Vietnam is the Vietnamese Dong. Currently, one U.S dollar is equal to 22, 291.57 Vietnamese Dongs, or 1 Vietnamese Dong is equal to 0.000045 of a U.S Dollar. In 2014, the Vietnamese Dong was undervalued 39% when compared against the US Dollar. (The Economist)

Vietnam has had a high and increasing GDP growth rate in the past few years in comparison to the global average (3.7%) (INGWB) In 2012, Vietnam’s GDP growth rate was 5.2% and rose to 6.0% in 2014. This growth is below the growth rate of the overall area of developing Asia, which had a growth rate of 7.5% in 2014. Figure 1 shows Vietnam’s GDP growth rates in comparison to Developing Asia, The United States and the European Union. Overall, the trend is a continual growth…
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