Vietnam

Taylor Suhy

Overall score: 51.7 World Rank: 148

Quick facts & Background

Vietnam United States

population: 89.7 million

GDP: $359.8 billion

GDP growth: 5.4%

GDP per capita: $4,012

Unemployment: 1.9%

inflation: 6.6%

FDI inflow: $8.9 billion


Vietnam remains a communist dictatorship. The economy is mainly driven by tourism.

United States

population: 316,4 million

GDP: $16.8 trillion

GDP growth: 1.9%

GDP per capita: $53,101

Unemployment: 7.5%

Inflation: 1.5%

FDI inflow: $187.5 billion

7 Major Sources of Economic Progress

Big image

Legal System

Vietnam is based on communist legal theory. Their system is inherited from French civil law system. The National Assembly is the highest ranking power, and they are responsible for law making activities. Private property rights are not respected as freedom of corruption values 15.

Limits on Government

Vietnam's tax rate is at 22%, and individual tax rate is 35%. They are also taxed with property and value. Overall, tax revenue is 19.6%. Government spending has been mostly free since 1996. Vietnam's fiscal freedom is also mostly free, except from 1996-2004 it has been repressed.

Efficiency

Regulatory rules lack efficiency. It takes very little to no capital to start a business. The process, however, takes months. The labor market is rough. Inflation has calmed, but the economy is still influenced by state- owned firms and controls. Business freedom is at 61.5% which is mostly unfree. Labor freedom is low at 62.9%, also mostly unfree. Monetary Freedom is at 66.8% which is moderately free.

Open Markets

Vietnam's average tariff rate is 5.7%. Their tariff rates affect goods such as food. Vietnam's trade freedom is low 78.9 percent.Investment rate of Vietnam is flat at 15.0 percent, and their financial rate is 30 percent. They are a very controlled country affecting its economy.
Vietnam on a bumpy road to economic power
"businesspeople should not relocate to Vietnam on the fuzzy hope of benefiting from a nationwide economic boom." mint.com