Analysis of Vietnam's Economic Growth and Development (2000-2018)

This report provides a comprehensive analysis of Vietnam's economic growth from 1999 to 2018. It begins with an introduction highlighting Vietnam's impressive economic achievements since 1986, including significant GDP and GDP per capita growth. The report then examines GDP trends using various metrics, including current prices in national currency, purchasing power parity international dollars, and constant prices, illustrated through graphs. It discusses the advantages and limitations of international economic comparisons, identifies key factors influencing Vietnam's economy, and describes the business cycle patterns. The conclusion summarizes the main points, emphasizing factors such as natural resources, infrastructure, and human capital, which impact the country's economic growth. References to relevant sources support the analysis.

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Economic Growth in Vietnam
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Introduction
From the enactment of the financial reforms in the year 1986 Vietnam has always shown
tremendous achievements all through. This is evidenced by the drastic rise in the gross domestic
product of the country from 1999 to 2018 with a margin of almost 2.8% (Maliszewski, W. 2010).
Additionally the country exhibited a rise in its GDP per capita of $5052 from 1999 to 2018.
Although the country’s revenue inequality appreciated by a 0.4 margin. Despite the initial
analysis of the Vietnam’s economy, current study shows that there has been an increase in the
inequality countrywide although the county levels are not much analyzed.
The paper has been structured with a purpose and aim at indentifying and explaining various
patterns and trends of GDP trends in Vietnam economy. As a result the period of our focus will
be majorly focused between a periods of 19 years in total (Chien & Zhang, 2012). The paper also
focuses on the merits and the demerits of the international evaluation of the economies in
Vietnam. Additionally it also points out the major factors which have contributed to trends and
patterns of the Vietnam economy at whole. Therefore the paper is specifically structured in
analyzing the GDP in terms of the current prices and national prices, the purchasing power parity
international dollars, and the GDP in terms of constant prices per cent change.
Patterns of Vietnam’s GDP over 19 years
The graphs below illustrates various patterns and trends of the economies in Vietnam with the
horizontal axis showing the time duration while the vertical axis showing the constituent GDP of
the country (1999-2018)

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The GDP at current prices in national currency
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0.00
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
Column1
Figure 1: GDP (Current Prices, National Currency) for Vietnam, in other Years
According to the graph illustrated above the GDP has been articulated in terms of billions of the
Vietnam’s national currency. The national centre of data lately presented data which evaluated
the GDP of the country’s marketing trends, production measurement of the country, the chain
weighted with no domestic currencies. The initial years of the Vietnamese economies according
to the graph in the year 1999 the GDP (current prices, national currency) was about $ 399942
while in 2010 the GDP was $ 2157828.5, and in 2018 the GDP is shown to be $5384882.72 thus
it is projected that in the upcoming 5 years the GDP is said to rise high (Drobyshevsky &
Kazakova, 2015).
The GDP at current prices in purchasing power parity international dollars

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1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0
100000000000
200000000000
300000000000
400000000000
500000000000
600000000000
700000000000
Billions
Figure 2: purchasing power parity international dollars
Based on the results presented in the graph above, the purchasing power parity of the Vietnam
economy has always increased from 199 to 2018 which shows that the country has a good basket
for its products. Centered on this idea, it shows that the Vietnam’s currencies are at equals taking
into account the exchange systems of the nation. Contrasting the two figures and prices of the
countries,, in order to get to the country’s price power parity there should be keen consideration
of the country’s goods and services (Lim, 2016).
Thus the amount of the data accumulated according to the graph shown above makes the
gathering of relevant data more tedious. Therefore for the data to be acquired it required the
intervention of the international comparisons programs of the united nations at large. As a result,
the acquired analysis of the ICP is always from survey prices of goods (Dept, 2014). Thus this
above data is essential for microeconomics in evaluating the global production of the country.

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The GDP at constant prices per cent change
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0
1
2
3
4
5
6
7
8
9
Units
Figure 1: The GDP at constant prices per cent change
The graph shown above shows the GDP of Vietnam at constant price percentage change between
1999 and 2018. According to the graph the value of GDP at constant price per cent change in
1999 was seen to be 4.7 while the value in 2018 is seen to 6.5 which show an increase in the
GDP over the years (Lim, 2014). Consequently it is perceived according to the graph that the
Vietnam’s GDP levels in the upcoming years will raise at considerable values.
Advantages and limitations of the above international comparison economic growth
During the process of evaluation the economies of different countries, there is always arousal of
merits which are outlined in this section. Some of the advantages include:

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1. The analysis of the country’s GDP rates it enables a nation to be in a position of pulling
off a substantial economic feat. This shows ideal position of focusing in the venturing in
the international markets.
2. Additionally, this evaluation enables a country to acquire a free market which reduces
that rate of intervention by other countries
Disadvantages include:
1. Transition in the quality levels – it is often known that used products are always replaced
by the old products. A variety of products such as vehicles, medics are always of higher
quality thus providing excellent features compared to the initial ones.
2. Incurring of costs – The gross domestic product does not always account the free time
that any individual may have or the rate at which different individuals are working.
Additionally, different jobs are relatively secure unlike the initial periods. Also the GDP
always does not consider the change in the real income which can always be understated.
Vietnam business cycle
According to empirical research conducted in this study it is vividly shown that the most
prominent models of business cycle are persistence, volatility, and the degree of
contemporaneous correlation of series. These business cycles are always the most known cycles
which are used in evaluating the GDP levels of the Vietnam’s economy since it employs the use
of various regression features which produce accurate results. Aside from the Business cycle
evaluating the Vietnam’s GDP rates it is also used in finding out the appreciation and
depreciation levels of the country (Ha & Hanh, 2012).

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Conclusion
Conclusively, the papers focus has been evaluating economic growth rate levels of the Vietnam
with its complexities which have risen over the years. The paper thus has outlined clearly the
essential factors which are establishing the wide economy of the public expenditure.
Additionally certain factors such as the availability of natural resources, the current
infrastructural levels, population levels, human capital among others are the major factors which
affect the countries in context growth levels. In relation this that there should improvement in
this sector in order to fruitful results which will boost the country economies.

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References
Chien, N. and Zhang, K. (2012). FDI of Vietnam; Two-Way Linkages between FDI and GDP,
Competition among Provinces and Effects of Laws. iBusiness, 04(02), pp.157-163.
Drobyshevsky, S. and Kazakova, M. (2015). Decomposition of Russia's GDP Growth Rate and
GDP Dynamics Factors in 2015. SSRN Electronic Journal, 5(2), pp.456-789.
Ha, T. and Hanh, L. (2012). Identifying the Public Administration Reform Performance through
the Lens of Provincial Competitiveness Index and GDP Per Capita in Vietnam. Modern
Economy, 03(01), pp.11-15.
Lim, D. (2016). Economic growth and employment in Vietnam. London: Routledge.
Dept, I. (2014). Vietnam (2nd ed., pp. 765-876). Washington: International Monetary Fund.
Lim, D. (2014). Economic Growth and Employment in Vietnam (3rd ed., pp. 657-783). Hoboken:
Taylor and Francis.

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