Vietnam, located in Southeast Asia, has been ranked as one of the best-performing economies in the
world over the past decade. Its economy has proven resilient to economic and other shocks; real GDP
grew by an average of 7.3% per year over 1995-2005; the share of industry rose from 29% to 41% of
GDP over the same period; and per capita income rose from US$ 260 in 1995 to US$ 835 in 2007.
1
Vietnam has made rapid progress in achieving several of the targets of the Millennium Development
Goals, although poverty reduction is progressing at a slower pace for the country’s ethnic minorities.
2
The relative contribution of agriculture, forestry, and fishing has declined in recent years due to the
rapid growth of the industry and service sectors; however, they still contribute 21% of GDP3
and employ
over 47% of the country’s labor force.
4
Rice production has a particularly vital role for the country in
terms of food security, rural employment and foreign exchange, employing two-thirds of the rural labor
force and positioning Vietnam as the world’s second-largest rice exporter.
5
The two most important ricegrowing
areas are the deltas of the Mekong and Red River.
Vietnam’s long coastline, geographic location, and diverse topography and climates contribute to its
being one of the most hazard-prone countries of the Asia-Pacific region, with storms and flooding, in
particular, responsible for economic and human losses. Given that a high proportion of the country’s
population and economic assets (including irrigated agriculture) are located in coastal lowlands and
deltas, Vietnam has been ranked among the five countries likely to be most affected by climate change.
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