section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Throughout the history of Vietnam, its economy has been based largely on agriculture —primarily wet rice cultivation. Bauxite, an important material in the production of aluminium, is mined in central Vietnam. Since reunification, the country's economy is shaped primarily by the CPV through Five Year Plans decided upon at the plenary sessions of the Central Committee and national congresses. The collectivisation of farms, factories, and capital goods was carried out as part of the establishment of central planning, with millions of people working for state enterprises. Under strict state control, Vietnam's economy continued to be plagued by inefficiency, corruption in state-owned enterprises, poor quality and underproduction. With the decline in economic aid from its main trading partner, the Soviet Union, following the erosion of the Eastern bloc in the late 1980s, and the subsequent collapse of the Soviet Union, as well as the negative impacts of the post-war trade embargo imposed by the United States, Vietnam began to liberalise its trade by devaluing its exchange rate to increase exports and embarked on a policy of economic development.
  
  In 1986, the Sixth National Congress of the CPV introduced socialist-oriented market economic reforms as part of the Đổi Mới reform program. Private ownership began to be encouraged in industry, commerce and agriculture and state enterprises were restructured to operate under market constraints. This led to the five-year economic plans being replaced by the socialist-oriented market mechanism. As a result of these reforms, Vietnam achieved approximately 8% annual gross domestic product (GDP) growth between 1990 and 1997. The United States ended its economic embargo against Vietnam in early 1994. Although the 1997 Asian financial crisis caused an economic slowdown to 4–5% growth per year, its economy began to recover in 1999, and grew at around 7% per year from 2000 to 2005, one of the fastest in the world. On 11 January 2007, Vietnam became the 150th member of the WTO (World Trade Organization). According to the General Statistics Office of Vietnam (GSO), growth remained strong despite the late-2000s global recession, holding at 6.8% in 2010. Vietnam's year-on-year inflation rate reached 11.8% in December 2010 and the currency, the Vietnamese đồng, was devalued three times.
  
  Deep poverty, defined as the percentage of the population living on less than $1 per day, has declined significantly in Vietnam and the relative poverty rate is now less than that of China, India and the Philippines. This decline can be attributed to equitable economic policies aimed at improving living standards and preventing the rise of inequality. These policies have included egalitarian land distribution during the initial stages of the Đổi Mới program, investment in poorer remote areas, and subsidising of education and healthcare. Since the early 2000s, Vietnam has applied sequenced trade liberalisation, a two-track approach opening some sectors of the economy to international markets. Manufacturing, information technology and high-tech industries now form a large and fast-growing part of the national economy. Although Vietnam is a relative newcomer to the oil industry, it is the third-largest oil producer in Southeast Asia with a total 2011 output of 318,000 barrels per day (50,600 m /d). In 2010, Vietnam was ranked as the eighth-largest crude petroleum producer in the Asia and Pacific region. The US bought the biggest share of Vietnam's exports, while goods from China were the most popular Vietnamese import.
  
  Based on findings by the International Monetary Fund (IMF) in 2022, the unemployment rate in Vietnam was 2.3%, the nominal GDP US$406.452 billion, and a nominal GDP per capita $4,086. Besides the primary sector economy, tourism has contributed significantly to Vietnam's economic growth with 7.94 million foreign visitors recorded in 2015.