Vietnam is a densely-populated, developing country that in the last 30 years has had to recover from the ravages of war and the rigidities of a centrally-planned economy. After many years of protracted wars, political isolation and economic stagnation, Vietnam is now rapidly getting integrated with the global economic and political mainstream.  Since 1986, Vietnam has embarked upon a policy of “Doi Moi” (Economic Renovation) to introduce market economy. In a liberal investment climate, investors from all parts of the world are evincing ever-growing interest in Vietnam.

Vietnam’s economy has expanded rapidly since 2000 with real GDP growth averaging 7.6% per year during 2000-7. The economy is expected to do well even amidst the present global recession. The growth of the private sector has been a significant feature of Viet Nam’s economic development over the past decade. The sector accounted for more than half of GDP in 2007 and generated almost all the new jobs created in the last few years.

Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. Vietnam's membership in the ASEAN Free Trade Area has led to even more rapid changes in Vietnam's trade and economic regime. Vietnam joined the WTO in January 2007, following over a decade long negotiation process. This will provide an important boost to the economy and should help to ensure the continuation of liberalizing reforms.

Vietnam is considered by investors as the most attractive investment destination in the region. Sine 1988, when Foreign Investments were first permitted into Vietnam, it has attracted more than USD 100 bn. During 2008, FDI worth USD 60 bn was approved. Vietnam’s economic relations have greatly diversified and its economic exchange with the neighbouring ASEAN countries and several other countries have expanded at a rapid pace. Singapore, Taiwan, Japan and South Korea are the leading foreign investors in Vietnam.

Vietnam has substantial energy and mineral resources- oil, natural gas, coal, iron-ore and bauxite, among others. A number of industrial parks have come up in the country, reflecting the changing economic structure- the agriculture sector, including forestry and fisheries, accounted for 20% of the GDP in 2007, down from 40% in 1991.

The Red River basin in the North and the Mekong Delta in the South are the principal agricultural regions and their main agricultural products include rice, pepper, jute, rubber, sugarcane, coffee, tea, groundnut and tobacco. Vietnam is a leading exporter of several commodities, including coffee, pepper and rice. Strong external demand also underpinned growth in the fisheries subsector. The Government is placing increasing emphasis on cash crops with export potential and on building of agro-based industries.