Rapid "transformation", where does Vietnam's economic miracle come from?

On the Eurasia Review page, author Matija Šerić commented that in more than 35 years of renovation, Vietnam has become one of the fastest growing economies .

Tăng trưởng kinh tế nhanh chóng giúp Việt Nam 'chuyển mình'

Vietnam has become a center of foreign investment and industrial production in Southeast Asia. (Source: VNEconomy)

Vietnam's economy has grown so rapidly and efficiently that there is little unemployable labor and little unused productive capacity. The Southeast Asian nation has enjoyed some of the strongest growth in agricultural and industrial production, construction, exports and foreign investment.

Author Matija Šerić asks, where does Vietnam's economic miracle come from?

According to the author, there are three main factors contributing to Vietnam's rapid growth in Gross Domestic Product (GDP), production and investment: Almost maximum trade liberalization with Asia and the rest of the world ; domestic reforms; large investments through public investment in people and materials.

According to the Global Competitiveness Report of the World Economic Forum (WEF), Vietnam's economy has risen in the competitiveness list from 77th (in 2006) to 67th (in 2020).

The World Bank's (WB) Ease of Doing Business Index also shows that Vietnam increased from 104th (in 2007) to 70th (in 2020).

Author Matija Šerić commented: "Vietnam has made progress in all areas from contract enforcement, increasing access to credit and electricity, tax incentives and international trade.

It is extremely important that the Government has invested heavily in human resources and infrastructure. This helps Vietnam to better connect the country with transportation and the IT sector as easily as possible."

Vietnam's economic growth is around 6-7% per year. Since 2010, GDP has generally grown at least 5% per year, and last year it grew 8%.

An article on the Eurasia Review website asserts that rapid economic growth has helped Vietnam "transform" from one of the poorest countries in the world to one of the middle-income countries. In 1985, GDP per capita was $230 and in 2022 it was $4,475.

In addition, the country has become a hub for foreign investment and industrial production in Southeast Asia. Most of the world's famous products are manufactured in Vietnam, from Nike, Adidas to Samsung smartphones.

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