IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i7p182-d1686106.html
   My bibliography  Save this article

Analyzing Vietnam’s Economic Transformation from 2007 to 2023: Insights from Structural Decomposition of Input–Output Tables

Author

Listed:
  • Nguyen Thi Bich Ngoc

    (Faculty of Economics and Rural Development, Thai Nguyen University of Agriculture and Forestry, Thai Nguyen City 250000, Vietnam
    The IDEC Institute, Hiroshima University, 1-5-1 Kagamiyama, Higahsihiroshima 739-8529, Japan)

  • Ichihashi Masaru

    (The IDEC Institute, Hiroshima University, 1-5-1 Kagamiyama, Higahsihiroshima 739-8529, Japan
    Graduate School of Humanities and Social Sciences, Hiroshima University, Higashihiroshima 739-8529, Japan
    Network for Education and Research on Peace & Sustainability (NERPS), Hiroshima University, Higashihiroshima 739-8529, Japan)

  • Bui Xuan Hong

    (Faculty of Economics and Rural Development, Thai Nguyen University of Agriculture and Forestry, Thai Nguyen City 250000, Vietnam
    Graduate School of Innovation and Practice for Smart Society, Hiroshima University, Higashihiroshima 739-8529, Japan)

Abstract

The present study investigates Vietnam’s economic structural transformation from 2007 to 2023, identifying key sectors contributing to output growth and poverty reduction. The study is situated within the broader context of industrialization and sustainable development in emerging economies. It employs structural decomposition analysis using Vietnam’s national input–output tables for the years 2007, 2011, 2015, 2019, and 2023. The analysis decomposes changes in total output into technical effects and final demand effects, allowing for an evaluation of the relative contributions of sectoral productivity and demand side factors. The findings of the study indicate that the manufacturing and services sectors have been the primary drivers of economic growth, with the electrical and optical equipment, food, beverages and tobacco, and basic metals sectors demonstrating particularly strong performance. The factor of final demand, which is derived from consumption, investment, and exports, has played a dominant role in driving output. Notably, export-led manufacturing has experienced significant benefits due to Vietnam’s engagement in free trade agreements. It is noteworthy that the agriculture sector demonstrated a period of recovery between 2019 and 2023, driven by an increase in final demand. This study underscores the pivotal function of sectoral adaptability, trade openness, and strategic policy in maintaining inclusive economic development. It is evident that the phenomenon under scrutiny is not only indicative of vulnerabilities and opportunities but also shaped by global shocks, for example, the coronavirus pandemic.

Suggested Citation

  • Nguyen Thi Bich Ngoc & Ichihashi Masaru & Bui Xuan Hong, 2025. "Analyzing Vietnam’s Economic Transformation from 2007 to 2023: Insights from Structural Decomposition of Input–Output Tables," Economies, MDPI, vol. 13(7), pages 1-17, June.
  • Handle: RePEc:gam:jecomi:v:13:y:2025:i:7:p:182-:d:1686106
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/7/182/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7099/13/7/182/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    2. Dhahri, Sabrine & Omri, Anis, 2020. "Foreign capital towards SDGs 1 & 2—Ending Poverty and hunger: The role of agricultural production," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 208-221.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nishijima, Daisuke, 2017. "The role of technology, product lifetime, and energy efficiency in climate mitigation: A case study of air conditioners in Japan," Energy Policy, Elsevier, vol. 104(C), pages 340-347.
    2. Shigemi Kagawa & Yuriko Goto & Sangwon Suh & Keisuke Nansai & Yuki Kudoh, 2012. "Accounting for Changes in Automobile Gasoline Consumption in Japan: 2000–2007," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-27, December.
    3. Jesper Stage, 2002. "Structural Shifts In Namibian Energy Use: An Input‐Output Approach," South African Journal of Economics, Economic Society of South Africa, vol. 70(6), pages 1103-1125, September.
    4. Xie, Rui & Wang, Fangfang & Chevallier, Julien & Zhu, Bangzhu & Zhao, Guomei, 2018. "Supply-side structural effects of air pollutant emissions in China: A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 89-95.
    5. Erik Dietzenbacher & Jesper Stage, 2006. "Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 85-95.
    6. Ling Yang & Michael L. Lahr, 2019. "The Drivers of China’s Regional Carbon Emission Change—A Structural Decomposition Analysis from 1997 to 2007," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    7. Ignacio Cazcarro & Rosa Duarte & Miguel Martín-Retortillo & Vicente Pinilla & Ana Serrano, 2014. "Water scarcity and agricultural growth in Spain: from curse to blessing?," Documentos de Trabajo (DT-AEHE) 1419, Asociación Española de Historia Económica.
    8. Rosa Duarte & Vicente Pinilla & Ana Serrano, 2015. "Global water in a global world a long term study on agricultural virtual water flows in the world," Documentos de Trabajo dt2015-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    9. Mohlin, Kristina & Camuzeaux, Jonathan R. & Muller, Adrian & Schneider, Marius & Wagner, Gernot, 2018. "Factoring in the forgotten role of renewables in CO2 emission trends using decomposition analysis," Energy Policy, Elsevier, vol. 116(C), pages 290-296.
    10. Zhang, Pingdan & Yuan, Haoming & Bai, Fuli & Tian, Xin & Shi, Feng, 2018. "How do carbon dioxide emissions respond to industrial structural transitions? Empirical results from the northeastern provinces of China," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 145-154.
    11. Inácio Araúgo & Randall Jackson & Amir B. Ferreira Neto & Fernando Perobelli, 2018. "Environmental Costs of European Union Membership: A Structural Decomposition Analysis," Working Papers Working Paper 2018-04, Regional Research Institute, West Virginia University.
    12. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    13. Oosterhaven, Jan, 2004. "On the definition of key sectors and the stability of net versus gross multipliers," Research Report 04C01, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. Llop, Maria, 2017. "Changes in energy output in a regional economy: A structural decomposition analysis," Energy, Elsevier, vol. 128(C), pages 145-151.
    15. Meng, Bo & Wang, Jianguo & Andrew, Robbie & Xiao, Hao & Xue, Jinjun & Peters, Glen P., 2017. "Spatial spillover effects in determining China's regional CO2 emissions growth: 2007–2010," Energy Economics, Elsevier, vol. 63(C), pages 161-173.
    16. Vanessa da Silva Mariotto Onody & Ana Catarina Gandra de Carvalho & Eduardo Polloni-Silva & Guilherme Augusto Roiz & Enzo Barberio Mariano & Daisy Aparecida Nascimento Rebelatto & Herick Fernando Mora, 2022. "Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    17. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    18. Yuhuan Zhao & Song Wang & Jiaqin Yang & Zhonghua Zhang & Ya Liu, 2016. "Input-output analysis of carbon emissions embodied in China-Japan trade," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1515-1529, April.
    19. Butnar, Isabela & Llop, Maria, 2011. "Structural decomposition analysis and input-output subsystems: Changes in CO2 emissions of Spanish service sectors (2000-2005)," Ecological Economics, Elsevier, vol. 70(11), pages 2012-2019, September.
    20. Fernández, Esteban & Fernández, Paula, 2008. "An extension to Sun's decomposition methodology: The Path Based approach," Energy Economics, Elsevier, vol. 30(3), pages 1020-1036, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:7:p:182-:d:1686106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.