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How large is Vietnam's informal economy?

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  • Nguyen Thai Hoa

Abstract

The purpose of this article is to estimate the size of the informal economy in Vietnam, describe its development from 1995 to 2015, and assess the country's potential tax loss from this activity. The MIMIC model indicates that the informal economy accounts for between 15 per cent and 27 per cent of GDP. The informal economy has grown sharply in Vietnam since 2007, while its size has decreased in other comparable nations. Potential tax revenue lost annually amounts to between 3.3 per cent and 5 per cent of gross domestic product.

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  • Nguyen Thai Hoa, 2019. "How large is Vietnam's informal economy?," Economic Affairs, Wiley Blackwell, vol. 39(1), pages 81-100, February.
    • Handle: RePEc:bla:ecaffa:v:39:y:2019:i:1:p:81-100
    DOI: 10.1111/ecaf.12328
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    References listed on IDEAS

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    Cited by:

    1. Thai Q. Nguyen & Giang K. Nguyen, 2020. "The impacts of civil society and inequality on the extractive capacity of authoritarian regimes: a conceptual model and the case study of Vietnam," Constitutional Political Economy, Springer, vol. 31(4), pages 489-508, December.

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