Vietnam
[graduated 01/01/2023; this is an archived page that is no longer updated] Vietnam currently still benefits from the Standard GSP and will leave the GSP scheme in 2022 due to the preferential trade agreement which entered into force in August 2020. The World Bank considers Vietnam a lower middle-income country with a per capita income of $4.010 (2022).
What is the GSP?
The “Everything but Arms” (EBA) scheme is a permanent arrangement covering Least Developed Countries (LDCs) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7,200 products in total) originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
98.2 M
Population
Communist State
Government
0.08
GDP Growth
0.034
Inflation
$ 408.8 B
GDP
Facts about Vietnam's economy
Export Products
Vietnam's most important export products are mobile phones and components, electronic integrated circuits, footwear, and sportswear as well as other electrical parts. Cashew nuts and coffee are the most important agricultural export products.
Trade Partners
Vietnam's most important trading partners are neighbouring China, the US, South Korea. Still, they only account for a share of around 53% of overall trade, reflecting the overall diversification of trading partners.
Economic Structure
Though the traditionally important agricultural sector slowly loses its significance, it still employs the majority of the Vietnamese population and remains an important source of raw materials for the processing industries. The processing of food and beverages remains a pillar of the economy and is based on the country's agricultural output: Seafood, coffee, and tea. Other cornerstones include the cement industry, fertilizer, and steel as well as the growing textile and garment industry and automotive manufacturing. The services sector has become increasingly important for the Vietnamese economy and is mainly driven by telecommunication, finance, assembly, marketing, research, and tourism.
Usage of GSP Preferences
Vietnam uses trade preferences granted under the GSP for about 21% of its total EU exports. The preference utilisation rate, which represents the ratio of preferential imports to GSP-eligible imports, currently stands at 24.5%, which implies that less than half of eligible products are imported using reduced tariffs.
Trade with the EU
Total trade with Vietnam amounted to € 64,325 million in 2022. With a share of 8.6%, the EU is Vietnam's fourth most important trading partner. It is the third most important export destination for Vietnamese products.
Coffee Production
With an annual production of about 1.7 million metric tons, Vietnam is the second largest producer of coffee in the world. Vietnam accounts for about 20% of the world coffee market.