Vietnam is in the east of the Indochinese peninsula in Southeast Asia. With its capital city of Hanoi, Vietnam is limited by China to the north, Laos, Cambodia and the Gulf of Thailand to the west and the South China Sea to the east and south. Covering an area of 331,698 square kilometers, Vietnam has about 89.5 million inhabitants.
Government type: centralized state, one-party rule
Head of State: Truong Tan Sang, President of the Republic
Head of government: Nguyen Tan Dung, Prime Minister
CPV General Secretary Nguyen Phu Trong
Area: 331,041 km²
major cities: Hanoi (7.3 million inhabitants), Ho Chi Minh city (8.1 million inhabitants),
Hai Phong (1.8 million inhabitants), Da Nang (926 000 inhabitants)
Official language: Vietnamese
Current Language: Vietnamese
Currency: the 04/06/2015: 1 EUR = 24,680 dong
National Day: September 2
Vietnam, on the edge of Southeast Asia, extends along the eastern coast of the Indochinese peninsula over 1,700 km from north to south. Its width does not exceed 300 km (50 km to the closest area). The territory is bounded on the east by the South China Sea – the Vietnamese call the East Sea (3260 km of coastline), north China, west and south-west by Laos and Cambodia. Covering an area of 331,000 km², Vietnam claims the Paracels archipelagos possession and Spratlys in the South China Sea. The terrain is varied and formed three-quarters of mountains and plateaus.
Population (2012) ²: 89.7 million
Density: 263 / km²
Population Growth: 1.0% (estimated over the period 2010-2015) ²
Life expectancy (2012) ²: 75.4 years
Literacy (2012) ²: 93.2%
Religions: Buddhist (75%), Catholics (7%), Cao Dai (2%), Hoa Hao (2%), Protestants (0.75%), Muslims (0.1%)
Human Development Index: 0.617 (127th Place – 2012 km²)
The Vietnamese economy is open from the early 1990s with the so-called policy of “renewal” (doi moi). It has since grown remarkably: per capita GDP has tripled over the period (1500 USD / cap today.), Allowing the country access in 2010 to the status of middle-income countries (lower bracket) .
Vietnam is a member of ASEAN since 1995 and has acceded to the WTO in 2007. The deterioration of the international situation in 2012, as well as the slowdown in domestic activity in Vietnam, have resulted in a withdrawal of countries in terms of market access.
The country aims to become an industrialized economy by 2020, but structural reforms are expected in particular because of the fragility of the banking sector and the public sector. Vietnam was forced to lead a sanitation policy since 2011.
More analysis and statistics: www.tresor.economie.gouv.fr
GDP (2014) ¹: 186.2 billion USD
GDP per capita (2013) ¹: 1895 USD / hab
growth rate (2014) ¹ 5.9%
unemployment rate (according to the ILO, 2013): 2.3%
Inflation rate (2014) ¹ 4.1%
Budget balance (2014) ¹: – 5.3% of GDP
Trade Balance (2014) ¹ 2.1 billion USD
Main customers (2014) ¹: United States (19.1%), EU (18.6%), China (9.9%), Japan (9.8%)
Major suppliers (2014) ¹: China (29.6%), South Korea (14.7%), Japan (8.7%), Taiwan (7.5%)
Share of main sectors in GDP (2014) ¹:
Main sources of income:
Vietnam live mainly from agriculture (rice), fishing, production of oil, coal. Tourism now holds a prominent place in Vietnam’s economy, with several sites inscribed on the List of World Heritage by UNESCO
Strengths / weaknesses
– With France
Barriers to entry
Source : www.diplomatie.gouv.fr
Good to know
The Dong (ISO 4217: VND) is the currency of Vietnam since 1978. The State Bank of Vietnam issues and controls the Dong. Since its reunification, Vietnam has suffered a state of chronic inflation, and its currency has been steeply devaluated. The Dong was the second least valued currency unit after the Iranian Rial in 2014. Vietnam has since devalued the Dong five times in an effort to help spur exports.
The Euro to Dong exchange rate converts at 24 968 on May the 30th, 2016.
Where to go?
How to settle there?
To do business
Taxes on people
Vietnam applies a progressive tax of 5 to 35%
From 0 to 60,000,000 VND
From 60 million to 120 million VND
From 120 million to 216 million VND
From 216 million to 384 million VND
From 384 million to 624 million VND
From 624 million to 960 million VND
Above VND 960 000 000
(VND 960 million = € 40 000, January 2016)
Vietnam has progressively reduced its tax rate on companies..
The 25 % rate has been reduced to 22 % in 2014. . On January 1st 2016, it has been fixed at 20%.
However certain sectors, such as Oil & Gas, may still be imposed at high rates up to 50%.
Vietnam applies a standard rate of 10 %.
Exports are not subject to VAT
26 categories of transactions, such farm products, postal services, life insurance are exempted from VAT.
First necessity products, inclusing medical and scientific equipment, are subject to a 5% rate.
There is no minimum income to be VAT liable. It depends on the type of activity.
Foreign Contractor Tax
The rates depends on whether the foreign contractor has a permanent establishment in Vietnam, whether he is registered for Vietnamese Accounting System (VAS), the duration of the services that are provided, or the nature of supplies.
They apply to certain transactions, including the acquisition of buildings and vehicles utilitiares.
Rates vary from 0.5% to 20%.
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