The Results-Based Rural Water Supply and Sanitation Under the National Target Program has helped address one of the biggest challenges in rural Vietnam by investing in physical infrastructure and improving the legal framework for sustained access to water supply and sanitation (WSS) services. Download historical data for 20 million indicators using your browser. Access to clean water in rural areas has also improved, up from 17 percent in 1993 to 70 percent in 2016, while that figure for urban areas is above 95 percent. Its economy is expected to grow 2.4% this year, … At the same time, Vietnam is one of the most rapidly aging countries and the 65+ age group is expected to increase 2.5 times by 2050. source: General Statistics Office of Vietnam 3Y 10Y 25Y Vietnam’s development over the past 30 years has been remarkable. The program also significantly strengthened institutional mechanisms for WSS monitoring, and evaluation processes within the implementing agencies of participating provinces. Vietnam economic growth rate constantly increases by years. March 12, 2021. Waste generation in Vietnam is expected to double in less than 15 years. Finally, agriculture, forestry and fishing represent 22 percent of total output. The total quantifiable benefits are estimated at approximately US$724 million in terms of saving in healthcare costs, productive time, flood control damage, and increased land value. For 2021, the government is targeting economic growth at 6.5 percent. Many ASA engagements leverage country-level partnerships and trust funds from development partners. The World Bank supports Vietnam’s efforts to provide quality, afforable health care services for all citizens. Earlier, the Bank conducted a ground-breaking study on conflict–of–interest issues in the context of growing interactions interactions between the public and private sectors. Vietnam has recorded an impressive economic growth since 2012, posting a 6 percent growth or higher every year. The economy will grow by 5.3% in real terms in 2021—a slower pace relative to recent years, amid a gradual recovery from the coronavirus pandemic. In the long-term, the Vietnam GDP Annual Growth Rate is projected to trend around 6.50 percent in 2022 and 5.90 percent in 2023, according to our econometric models. 2020 was a remarkably difficult year. Vietnam joined the Human Capital Project in 2019 to improve nutrition and access to quality education and to enhance workforce development for a changing economy. “Economic recovery will not be a … Vietnam's gross domestic product advanced by 2.62 percent year-on-year in the third quarter of 2020, accelerating from a marginally revised 0.39 percent growth in the previous period, as the economy gradually returned to normal conditions, after loosening the lockdown measures to contain the spread of the coronavirus, the preliminary estimate showed. Between 1990 and 2016, life expectancy increased from 70.5 to 76.3 years, and is the highest in the region for countries at a similar income level. One pillar helped improve inter-sectoral coastal planning and mainstream climate change into public investment across selected key sectors. Vietnam is among the 10 countries worldwide that are most affected by air pollution. Inflationary pressures are projected to remain moderate, due to subdued global demand conditions and moderate global energy and food prices. To learn more about cookies, click here. This is higher than the average for East Asia and the Pacific region and lower middle income countries. Economy | March 23rd 2021 UK-Vietnam trade agreement set to take effect in May. World Bank national accounts data, and OECD National Accounts data files. In Vietnam, industry and construction constitute the biggest sector of the economy (41 percent of total GDP). The government is working to lower the environmental footprint of the country’s growth and effectively mitigate and adapt to climate change. Health outcomes have improved in tandem with rising living standards. The current World Bank Group Country Partnership Framework (CPF) for Vietnam guides the Bank Group's engagements in the country from 2018 to 2022. Vietnam now is one of the most dynamic emerging countries in East Asia region. In addition, 19 new small hydropower plants were built with a total capacity of 320MW, which supplied an annual volume of 1,260GWh. Considering the first nine months of 2020, the economy expanded 2.12 percent from a year earlier. Economy | March 31st 2021 Vietnam’s growth subdued in Q1 2021. Current economic risks relate to geopolitics, trade policy uncertainty, and domestic reform implementation. The World Bank Group works in every major area of development. The economy expanded 2.91% this year after having posted gross domestic product growth above 7% for two consecutive years, the General Statistics Office (GSO) said in a statement. The country also battled one of the century’s worst droughts and just recently reeled from the worst floods in decades. But the population is rapidly aging. Improved sanitary latrines were built in some 142,000 households and 1,500 schools. GDP Growth rate(%) 2020: 1.600: 2021: 6.700: 2022: 7.440: 2023: 7.240: 2024: 6.931: 2025: 6.630 Demand for water continues to increase, while water productivity is low, about 12 percent of global benchmarks. However, the high and widening sex ratio at birth (115 in 2018) shows that fundamental gender discrimination persists. The Bank also provides strategic advice for Vietnam on how to prepare its workforce for future jobs. More. Vietnam’s universal health coverage index is at 73—higher than regional and global averages—with 87 percent of the population covered. Considering the whole year of 2020, the economy expanded 2.91 percent from a year earlier. The expansion was driven mainly by agriculture, forestry and fisheries (3.16 percent); industry and construction (6.30 percent), manufacturing (9.45 percent) and service sector (3.34 percent). The diagnostic and recommendations contributed to Vietnam’s successful containment of COVID-19 outbreak – by the end of 2020, a country of 95 million people only registered 1,465 infected cases with 35 deaths while managing to post a positive GDP growth. It confirmed the relevance of the current CPF, aligned with the government of Vietnam’s development objectives and demand for WBG support. Reforms brought about by this program also contributed to improved energy efficiency of household appliances and increased investment in renewable energy, particularly solar power and wind power. An additional two million people indirectly benefited from the city-wide infrastructure improvements and the new social facilities. Regardless of the impact of the COVID-19 pandemic, Vietnam is forecast to be one of the fastest-growing economies in Southeast Asia. The long-term benefits go beyond the duration of the project. Key strategies and plans to stimulate green growth and sustainable use of its natural assets are in place. Yet, in the past six years the growth in services outpaced significantly all other sectors, and today services account for 37 percent of GDP. However, this is still much better than many of other South East Asia countries and the world average. Since 2018, the World Bank has supported Vietnam’s Office of the Government (OOG) in its efforts to build a digital government to ehance the efficiency and transparency of public service delivery. Poverty is expected to decline further, as labor market conditions remain favorable. A strong second quarter will be led by the industrial sector, which will push up annual growth rates in 2021. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Vietnam has made great strides in reducing poverty and improving quality of life for millions. The economy growth in the fourth quarter of this year, however, remains significantly lower than an expansion of 6.79 percent recorded at the same period last year, before the pandemic. A former Vietnamese government adviser claimed that the coronavirus outbreak will cause Vietnam’s economic growth rate to reduce around 1 percentage … Vietnam exceeded its 2017 GDP growth target of 6.7% with growth of 6.8%, primarily due to unexpected increases in domestic demand, and strong manufacturing exports. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. Parliament has set an official target of 6% growth this year, but the government hopes to push it as high as 6.5%. Comprehensive engagement to strengthen private sector development and participation across sectors; Support to achieve the financial sustainability of public services and transfers; Support to poverty reduction amongst ethnic minorities, through livelihood and income generation activities; Multisector engagements to strengthen linkages between education and the labor market; and. Vietnam Manufacturing PMI Rises to 27-Month High, Vietnam Consumer Prices Fall for 1st Time Since 2001, Vietnam Retail Sales Grow the Most in 9 Months, Vietnam Industrial Output Growth at 4-Month High, Fitch Revises Vietnam Credit Outlook to Positive, Bovespa Ends Lower, But Still Up for The Week, Costa Rica Inflation Rate Rises to 0.47% in March, Ukraine Inflation Rate Jumps to 1-1/2-Year High of 8.5%, Mozambique Inflation Rate at Over 3-Year High, Senegal February Inflation Rate Eases to 1.2% in March, Belgium Industrial Output Growth Flattens in February, Slovenia Industrial Output Falls 1.3% YoY in February. The hydropower plant reduced greenhouse gas emissions by approximately 1 million tons compared to a thermal plant supplying the same volume of electricity.The project increased the percentage of the local population with access to electricity from 30 percent in 2015 to 97 percent in 2019 – while contributing to improved quality of electricity supply in the broader region. Promote and stimulate low carbon energy generation. Despite of Covid-19, this Vietnam economy remains steadfast in maintaining positive growth. The guideline to develop a multi-sector economy has been carried out effectively. Urbanization and strong economic and population growth are causing rapidly increasing waste management and pollution challenges. There is an urgent need to accelerate the clean energy transition. Vietnams growth is projected to moderate to 6.6 percent in 2019, driven by credit tightening, slower private consumption and weaker external demand. This was unexpected given the COVID 19 lockdown. Vietnam's gross domestic product grew by 6.88 percent year-on-year in the third quarter of 2018, compared with a 7.46 percent growth in the same period of the previous year. In August 2020, the Vietnam's Open Budget Portal went live, making budget information for all government levels available for the public in one place. 2.7% real GDP growth for Vietnam is much lower than 2019 growth of 7%. Since COVID-19 hit Vietnam in early 2020, the World Bank Group has worked with Vietnam on multiple fronts of the national response strategy from health crisis management to fostering a resilient recovery. Between 2010 and 2020, the HCI value for Vietnam increased from 0.66 to 0.69, but there are some disparities within the country, especially for ethnic minorities. Improving the efficiency and integrity of the public sector is a priority for the World Bank in Vietnam. “To achieve its ambition to become a high-income economy by 2045, Vietnam must put productivity growth front and center of its economic model. This is significant given that the number of industrial zones has increased by 26.4 percent. Vietnam Economy Growth Despite Pandemic. Vietnam economic growth for 2018 was $245.21B, a 9.58% increase from 2017. Tra Mac. Vietnam’s human capital index (HCI) stands at 0.69, meaning a child born in Vietnam today will be 69 percent as productive when she grows up as she could be if she enjoyed complete education and full health. Global data and statistics, research and publications, and topics in poverty and development, *Amounts include IBRD and IDA commitments, Environmental and Social Policies for Projects, Vietnam Renewable Energy Development Project, Climate Change and Green Growth Development Financing, Coastal Resources for Sustainable Development Project, Vietnam Industrial Pollution Management Project, Mekong Delta Region Urban Upgrading Project, Results-Based Rural Water Supply and Sanitation Under the National Target Program, Northeast and Red River Delta Regions Health System Support Project, Second Northern Mountains Poverty Reduction Project, Country Partnership Framework for the Period FY18-FY22, Performance and Learning Review of the Country Partnership Strategy for Vietnam (FY12 - 16), Joint Vietnam-World Bank Group Study Will Seek Path for Higher Economic Growth, Results from the World Bank Group’s 2012 – 2017 – Country Partnership Strategy for Vietnam, WBG Country Partnership Framework for Vietnam 2018 – 2022: Key Priorities. The Mekong Delta Region Urban Upgrading Project has turned low-income, low-lying areas into greener urban spaces in six cities of the Mekong Delta Region. If you continue to navigate this website beyond this page, cookies will be placed on your browser. “However, in a less likely scenario, when the spread of new Covid-19 variant turns more serious, domestic economic activities could be disrupted and keep the GDP growth even at a lower rate compared to last year,” warned the VEPR. The quality of preschool instruction improved through the introduction of a child-centered learning approach for 250,000 early childhood education teachers. Vietnam economic growth for 2019 was $261.92B, a 6.81% increase from 2018. In addition, about 1.4 million people in 203 communes gained access to commune-wide sanitation. Government estimates showed the Vietnamese economy growing 2.9% last year from a year ago, better than China's forecast-beating 2.3% growth during the same period. This will create challenges for continued growth of modern infrastructure services required for the next phase of growth. The project, which benefited 192,000 households and resulted in a 16-percent increase in incomes, provided good lessons for government to revise its poverty reduction policy and approach. The plant has also helped mitigate flood risks in downstream communities. 2000-2021 Data | 2022-2023 Forecast | Calendar, source: General Statistics Office of Vietnam. Despite a global economic crisis and likely recession in some of its neighboring countries, Vietnam aims for an economic growth of 5% this year. Find out what the Bank Group's branches are doing in Vietnam. Compounding the problem is the reality that much of Vietnam’s population and economy is highly vulnerable to climate impacts. Between 2013 and 2019, more than 1 million people had their water supply connected to sustainable water systems, while 400,000 new functioning water supply connections were built. The vast majority of Vietnam’s remaining poor – 86 percent –are ethnic minorities. In addition, policies supported by this program helped promote the uptake of water-efficient irrigation practices and technologies – and prompted provinces to establish protection corridors for main water sources. Linked to this is the issue of marine plastics. In rural Vietnam, all too many people – especially children – live without sanitation. All these plants followed global best practices on environmental and social risk management, setting new industry benchmarks in Vietnam. Q2 2020 Vietnam economy grew by 0.36% year on year (H1 expansion of 1.81% year on year). The project which closed in FY19 provided early-stage investment and technical support to build the requisite capacity and incentives among all stakeholders for scaled-up development. Achievement of the objectives set forth in the CPF results framework are largely on track, following the implementation of a large WB lending portfolio that includes many projects approved under IDA18 and IBRD, strong International Finance Corporation (IFC) performance, and the implementation of a comprehensive Advisory Services and Analytics (ASA) portfolio supporting and informing key policy and reform areas. The economy of Vietnam is a socialist-oriented market economy, which is the 36th-largest in the world as measured by nominal gross domestic product (GDP) and 23rd-largest in the world as measured by purchasing power parity (PPP). The project also assisted 13,000 fishers in adopting good aquaculture practices with the introduction of new eco-friendly technologies, while helping improve the biosecurity infrastructure in which they operate. Its population reached 96.5 million in 2019 (up from about 60 million in 1986) and is expected to expand to 120 million by 2050. The World Bank has supported Vietnam in reforming the educational system at all levels. Poverty rates declined sharply from over 70 percent to below 6 percent (US$3.2/day PPP). The World Bank has worked closely with Vietnam to address the last miles in poverty eradication as approximately 8 million of Vietnamese people still lived with less than US$3.2 per day in 2018. There is also a need to upgrade the skills of the workforce to create productive jobs at a large scale in the future. But given that Vietnam is one of the few countries in the world currently experiencing positive GDP growth, the supposed trade-off between the economy … In the first half of this year, the economy advanced 1.91 percent from a year earlier. The economy growth in the third quarter of this year, however, remains significantly lower than an expansion of 7.31 percent recorded at the same period last year, before the pandemic. In addition, Vietnam benefits from a large and diverse portfolio of Advisory Services and Analytics (ASA), with 34 currently active tasks. GDP grew by 2.9 percent in 2020. The IMF expects the country’s growth to slow to 2.7% this year but expects a recovery to 7% for 2021. The GDP growth was driven mainly by agriculture, forestry and fisheries sectors (4.69 percent); industry and construction (5.60 percent) and service sector (4.29 percent). Fully operational since 2017, the plant has supplied 1 billion kilowatt-hours (kWh) of electricity annually at a unit cost lower than other renewable sources or coal. Endorsed on May 30, 2017, and reflecting and building on the priorities identified and expressed in the World Bank Group's 2016 Systematic Country Diagnostic, the Vietnam 2035 Report, and the Government of Vietnam’s 2016-2020 Socio-Economic Development Plan (SEDP), the CPF has four priority areas: Building on the World Bank Group’s continued strong engagement in Vietnam, the CPF introduces strategic shifts that will guide the Group’s work going forward: The World Bank Group conducted a Performance and Learning Review (PLR) of the CPF in early 2019. 2020 is a tough year for Vietnam, yet the economy has reaped remarkable achievements. The Key Drivers of Growth in Vietnam Interestingly, one of Vietnam’s most established economic drivers is trade, with the country known as a prominent exporter of goods to nations across the globe. The GDP growth was driven mainly by agriculture, forestry and fisheries sectors (2.93 percent); industry and construction (2.95 percent) and service sector (2.75 percent). Given the increasing reliance of fossil fuels, the power sector itself accounts for nearly two-thirds of the country’s greenhouse gas emissions. In February 2019, the Bank and OOG conducted a readiness assessment to ascertain the potential for digital government development in Vietnam, leading to the launch of the National Public Services Portal in December 2019 and E-Cabinet in June 2019. The Vietnam Renewable Energy Development Project supported some of the first large-scale private-sector led deployments of renewable energy into Vietnam’s power mix, which has significantly expanded today, accounting for nearly 10 percent of Vietnam’s power generation capacity.