For over two decades since its initial reforms, Vietnam banking industry has grown aggressively, at least in terms of the number of banks.
Vietnam has been one of the fastest growing emerging markets in the world for more than a decade.
In 2030, the population of Vietnam will reach 105 million, an increase of 12.6% from 2015. The increasing population is influenced by factors such as a relatively high birth rate and increasing life expectancy; factors which mitigate the effects of negative net migration. Vietnam’s population is primarily rural, a pattern that will continue through to 2030.
Vietnam’s growth rate averaged 6.4% per year in the 2000s, but begun to slow in the wake of the global financial and economic crisis. However, driven by strengthening domestic demand, GDP has accelerated to 6.3% during the first half of 2015, the fastest first-half-of-the-year growth rate in the past five years. Vietnam has managed to improve macroeconomic stability, with the consumer price index rising only 0.6% year-on-year in August 2015, down from 4.3% a year earlier.
Vietnam grew at its fastest pace this year in Q3 2015 and managed to outperform its neighbors amid a global economic cool down thanks to a strong performance of exports, manufacturing, and record-high foreign direct investment.
This trend is expected to continue as low inflation is boosting domestic demand and Vietnam’s exports are growing. Vietnam is expected to benefit in the long run from the recent signing of the Trans-Pacific Partnership (TPP) free-trade agreement. It is also argued that the TPP will help Vietnam carry out the political and economic reforms necessary to become a more open economy.
It has been forecasted that Vietnam’s real GDP growth to accelerate to 6.6% in 2016.