Vietnam profile

Demography and Health

Vietnam’s population stood at about 101 million people in 2024, making it the 16th most populous country in the world. The demographic profile combines a relatively young population with a gradual transition that could yield a demographic dividend if health, education, and employment opportunities continue to improve. In 2023, the crude birth rate was 13.8 per 1,000 people and the crude death rate 6.58 per 1,000, indicating a positive natural increase but a pace that is slowing as the country develops. Net migration in 2024 was negative, at roughly 59,645 people, suggesting more people leaving than entering and potentially shaping future labor supply and urban dynamics. Life expectancy at birth is 74.6 years (2023), and under-5 mortality is 20 per 1,000 live births, reflecting ongoing gains in child health but also areas where further progress is needed. The poverty headcount stands at 4.3% (2022), and the prevalence of undernourishment is 5.2% (2022), signaling that while broad poverty reduction is evident, malnutrition and vulnerability persist in some communities. Internet penetration is high at 78.1% (2023), enabling better access to health information and digital services, yet there remain gaps in digital inclusion for rural or disadvantaged groups. Health financing shows a modest share of resources: current health expenditure is 4.59% of GDP (2022), and domestic general government health expenditure per capita, PPP is about 266 international dollars (2022), indicating a strong role for private and out-of-pocket spending in health along with public investment, with opportunities to expand universal health coverage and primary care capacity. The suicide mortality rate is 7.3 per 100,000 (2021), illustrating the importance of mental health services within the broader health system. Together, these indicators highlight an improving health and demographic trajectory, coupled with the need for continued investment in health financing, nutrition, maternal and child health, and mental health services to sustain inclusive development.

Economy

Vietnam’s economy is characterized by a relatively low per‑capita income but strong growth dynamics, underscored by high export intensity and a growing technology footprint. GDP per capita (current US$) is about 4,717 (2024), and GDP per capita in PPP terms is 16,386 (2024), placing the country in the lower‑middle income tier with substantial room for productivity gains. The economy benefits from a robust export base, with exports of goods and services totaling 86.5% of GDP in 2023 and imports at 78.4% of GDP, signaling a highly open and trade‑driven growth model. A notable feature is the surge in high‑tech exports, which reached about 135.9 billion USD in 2022, ranking among the top economies globally in this category (rank 8). This reflects a rapid shift toward electronics, information technology, and advanced manufacturing, aided by a strong pipeline for innovation and foreign investment. Inflation is contained at 3.62% in 2024, supporting macro stability, while unemployment remains relatively low at 1.65% (2023), reinforcing positive labor market conditions amidst an expanding economy. Domestic demand and private consumption are supported by improving incomes, while poverty remains low (4.3% in 2022) and the economy benefits from a growing middle class. In sum, Vietnam’s economy blends rapid export‑led growth with rising high‑tech production, supported by a relatively stable inflation environment and favorable employment outcomes, though future progress will depend on sustaining productivity gains and diversification beyond traditional manufacturing.

Trade and Investment

Trade and investment are central to Vietnam’s development model. The country runs a large trade surplus and a strategically integrated economy. The current account balance stands at 5.89% of GDP in 2024, signaling a healthy external position supported by robust export receipts. Foreign direct investment net inflows amount to 4.23% of GDP in 2024, illustrating sustained investor confidence and the country’s appeal as a manufacturing and tech‑driven investment destination. The logistics and trade environment benefit from strong infrastructure relative to peers: the Logistics Performance Index for quality of trade and transport‑related infrastructure is 3.2 (out of 5) in 2022, with a relatively favorable global rank of 14, reflecting efficient logistics for a developing economy. Exports of goods and services comprise a large share of GDP (86.5%), complemented by imports at 78.4% of GDP, which together underpin integration into global supply chains. The space for innovation is visible in patent activity (residents) totaling 1,066 filings in 2021, with a rank of 31, suggesting an increasingly capable domestic innovation ecosystem. High‑tech exports (current US$) reached about 136 billion in 2022, underscoring the country’s emergence as a regional hub for advanced electronics and related sectors. Inflation remains manageable at 3.62% (2024), and the unemployment rate of 1.65% (2023) supports consumer demand and investment activity. Overall, the economy benefits from a progressive openness, rising technological exports, and a strong external balance, though continued reform is needed to sustain growth, diversify export bases, and improve productivity and domestic value addition.

Governance and Institutions

Vietnam’s governance indicators present a mixed picture reflecting ongoing institutional development and challenges. Political stability and absence of violence/terrorism score −0.0364 in 2023, with a rank of 104, suggesting a relatively stable political environment but room for resilience enhancements. Regulatory quality sits at −0.383 (2023, rank 120), signaling difficulties in design and implementation of effective regulations and policy coherence. The rule of law index is −0.0855 (2023, rank 97), indicating gaps in the enforcement of legal frameworks and contract culture. Control of corruption is −0.416 (2023, rank 116), highlighting perceived weaknesses in anti‑corruption reforms and governance transparency. Government effectiveness is slightly positive at 0.126 (2023, rank 83), implying some administrative capacity and policy execution, albeit with uneven performance across agencies. The confluence of these indicators points to a governance environment that supports openness and policy continuity in places (e.g., macro stabilization, foreign investment facilitation) but also faces constraints in regulatory quality, rule of law, and anti‑corruption efforts. Strengthening judicial independence, rule of law, and public sector governance could help translate Vietnam’s economic gains into broader social outcomes and more predictable business climates.

Infrastructure and Technology

Vietnam demonstrates notable progress in infrastructure quality for trade and digital connectivity, even as it continues to invest in science and technology. The Logistics Performance Index rating of 3.2 (2022) with a rank of 14 indicates that Vietnam has relatively strong logistics capabilities within its regional context, supporting export efficiency and just‑in‑time manufacturing. Internet adoption is high, with 78.1% of the population online in 2023 and an overall internet user base of 78.1%, reflecting broad digital connectivity for commerce and education. In research and development, expenditure stands at 0.425% of GDP (2021), and patent activity among residents reached 1,066 filings in 2021 (rank 31), signaling a growing but still developing innovation ecosystem. High‑technology exports (about 136 billion USD in 2022) point to a strong manufacturing base in electronics and related sectors, corroborated by a current account that supports capital formation. While renewable energy accounted for 24.2% of total final energy consumption (2021) and R&D intensity remains modest, the combination of robust export logistics, rising patent activity, and substantial high‑tech output positions Vietnam as a rapidly modernizing middle‑income economy with considerable technology diffusion potential. Ongoing investment in energy efficiency, digital infrastructure, and science policy would help sustain this trajectory.

Environment and Sustainability

Vietnam faces environmental and sustainability challenges alongside its development gains. The country’s per‑capita greenhouse gas emissions are about 5.22 t CO2e (2023), indicating rising emissions as industry and energy demand expand, even as energy efficiency and renewable adoption evolve. Total greenhouse gas emissions per capita place Vietnam among developing economies with growing carbon footprints, underscoring the need for a balanced decarbonization strategy. Renewable energy constitutes roughly 24.2% of total final energy consumption (2021), signaling meaningful diversification of the energy mix with room to accelerate the transition to lower‑emission sources. The environmental picture is further colored by water stress indicators, with freshwater withdrawal at 18.1% of available resources (2021), pointing to pressure on water resources in certain basins and sectors. These environmental dynamics intersect with urbanization, industrial policy, and climate vulnerability (e.g., rising heat, resilient infrastructure needs). In terms of food and health, undernourishment remains at 5.2% (2022), reminding that sustainability includes resilience in nutrition and livelihoods. Overall, Vietnam’s development path shows progress toward cleaner energy and resource management, but the growing climate and environmental pressures will require continued policy emphasis on energy transition, water management, and climate adaptation to sustain inclusive growth.