We study structural transformation and change in the Vietnamese economy using two Social Accounting Matrices (SAMs), one for the year 2000 and a recently compiled SAM for the year 2012. This period is of particular interest as it features an important shift in terms of more economic integration with the global economy. Several analytical approaches are taken, including comparisons and decomposition of multipliers and a decomposition of structural change.

We observe significant changes in economic structure, and the results suggest that the Vietnamese economy has become internally more integrated over the period 2000–12, while moving from primary production (agriculture) towards more value adding manufacturing activities. This transformation has been broad-based and in large measure driven by external demand.

We conclude that it will be challenging to sustain growth without bold moves in technological upgrading and measures geared towards even stronger internal economic integration.