Vietnam’s market size
Vietnam’s market size
Vietnam is a developing country with a high economic growth rate in the region and in the world. According to the General Statistics Office of Vietnam, Vietnam's average GDP growth in the period 2011-2020 was 5.96%. In 2020, although the economy was negatively affected by the COVID-19 epidemic, Vietnam's GDP still grew by 2.91%, reached USD 271.2 billion while many countries in the world had negative GDP growth. This figure shows that Vietnam has succeeded in controlling the pandemic and minimizing negative impacts on the economy.
Vietnam is in the process of transforming its economy from backward agriculture to modern industry. At the same time, Vietnam is also an export-oriented economy, with exports playing an increasingly important role in gross domestic product. Therefore, the demand for modern machinery, equipment and raw materials for production, export and construction has increased.
With a total population of nearly 100 million people and the average GDP per capita of about USD 2,786/person in 2020 (World Bank, 2021), Vietnam is becoming a large and potential consumer market for foreign consumer goods. As a country with a young population (about 55.5% of the population under the age of 35), Vietnam has diverse consumption needs and Vietnamese consumers have quickly grasped new and modern consumption trends. Vietnam's middle class is forming with about 13% of the current population and is expected to increase to about a third of the population by 2026 (World Bank, 2021). This class has modern shopping habits and high demand for quality products.
Source: "Business Handbook: Exploiting the EVFTA to import and export goods between Vietnam and Germany" - Center for WTO and International Trade
