Vietnam Economy

Topics: Economic growth, Economics, Chevrolet Pages: 2 (606 words) Published: November 4, 2011
Vietnam has during the last two decades developed into a dynamic and fast growing market – also in automobile industry. Economic reforms, membership of WTO since 2007 and an impressive number of foreign investments, the notable increase in GDP, in people’s demand for high quality product and the almost-zero of the domestic automobile industry have led Vietnam to become the potential market for Volkswagen. The global crisis led to a temporary slowdown of Vietnam’s fast economic growth, but growth is back on track with 6.8% growth in 2010 and more than 7% per year expected in 2011-2015. Table 1: Vietnam’ GDP real growth rate (%)

Source: Source: General Statistics Office of Vietnam
The rate of economic growth has during the last decade amounted to 7-9% per year, amongst the highest recorded growth rates in the world. The GDP per capita is USD 1160 (2010), and an increasing number of Vietnam’s 87 million inhabitants demand consumer products of higher quality. Table 2: Vietnam’s GDP per capital (US$)

Source: General Statistics Office of Vietnam
However, the average income in Vietnam is still fairly low in comparison with the company price (about………….. cai nay lay so lieu ben product nhe, to k tim duoc). According to “Background note of Vietnam” recorded by U.S Department of State in, Vietnam’s per capita income in 2010 was just $1,168 one person per year. Whereas, imported cars in Vietnam have to suffer upto 3 kinds of duty, including: Import Duty, Extra Duty, and Value Added Tax. Regardless of how strict Vietnam taxation policy is, the accession agreement which was compulsory for Vietnam to become WTO’s member in 2007 obliged Vietnam to lower its import tariffs and to welcome foreign investments in most commercial sectors of the economy. Certain sectors are partly protected against foreign competition in an interim period, but from 2012 respectively 2014 all sectors of the economy must welcome foreign goods and...
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