Vietnam has a unique position on the world map, especially on the geopolitical map. economic growth rare and rapid growth over the years. It is expected that by 2050, Vietnam will be able to compete with the biggest economic giants, said Eurasia Review.
Fast and efficient growth
During more than 35 years of doi moi, Vietnam has become one of the fastest growing economies. Few countries have recorded such high growth except China. The economy grew so quickly and efficiently that very few workers were left unemployed and very little productive capacity was left unused.
Vietnam's economy has achieved the strongest growth in agricultural and industrial production, construction, exports and foreign investment.
The question is, how did the economic miracle of Vietnam happen? The writer of Eurasia Review points out, there are 3 main factors contributing to Vietnam's rapid GDP growth, production and investment: Almost maximum trade liberalization with Asia and the rest of the world; Domestic reform; Large investments through public investment in people and materials.
With the reforms, the number of private companies in Vietnam has increased: By 1996, there were 190 joint stock companies and 8.900 limited liability companies registered. During those years, the National Assembly introduced many tax incentives to encourage domestic and foreign investment. Regarding rural development, the government restructured the rural economy, training the workforce for industry.
Regarding trade liberalization, it is very important that Vietnam has joined many international organizations and associations promoting free trade over the past three decades.
In 1995, Vietnam joined ASEAN and in 1998, Vietnam joined the Asia-Pacific Economic Cooperation (APEC). In 2000, the Vietnamese government signed a bilateral trade agreement with the US and in 2007, Vietnam officially became a member of the World Trade Organization (WTO). Special Trade Agreements have also been signed by Vietnam with China, Japan, India, and South Korea, and in 2018, Vietnam joined the CPTPP.
Vietnam's efforts have attracted the attention of international organizations and economic research institutes.
According to the World Economic Forum's (WEF) Global Competitiveness Report, Vietnam's economy has risen in the list of competitiveness from 77th in 2006 to 67th in 2020.
The World Bank (WB)'s Doing Business Index, Vietnam increased from 104th in 2007 to 70th in 2020. Vietnam has made progress in all areas from contract performance, increased 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.
The government has invested heavily in infrastructure to better connect the country to transport and make accessing the Internet and the information technology sector as easy as possible.
Positive forecast for the future
Vietnam's economic growth is around 6 to 7% per year. Since 2010, GDP has generally grown at least 5% per year and last year grew at 8%. Vietnam has become a center of foreign investment and industrial production in Southeast Asia.
The main economic regions are Hanoi and Ho Chi Minh City. Most of the globally famous products are made in Vietnam, from Nike and Adidas to Samsung smartphones. Walmart, IKEA, Starbucks, McDonald's, INTEL, Microsoft, LG Group… operate in Vietnam.
Rapid economic growth has helped Vietnam transform itself from one of the world's poorest countries into one of middle-income countries. In 1985, GDP per capita was 230 USD and in 2022 it was 4.475 USD.
This puts Vietnam in 116th place in the world, still a low GDP level due to its large population, but progress is huge, noted Eurasia Review. Inflation in Vietnam was assessed at 3,2% last year, which is excellent data compared to the rest of the world.
According to this article, Vietnam's success lies in its sustainable growth and effective structural reform. PricewaterhouseCoopers estimates that by 2050, Vietnam's economy could rank 10th in the world. Experts put Vietnam in the group of Next-11 countries such as Egypt, Mexico, Nigeria and others, along with the BRICS countries will be one of the world's largest economies of the XNUMXst century.
As its economic capacity has been consolidated, Vietnam also has an increasingly strong assertion in the geopolitical arena. Vietnam is a member of ASEAN, Non-Aligned Movement, Francophone International Organization and twice a member of the United Nations Security Council.
In addition, Vietnam also hosts international conferences, the World Economic Forum, APEC, ASEAN, the US-North Korea Summit...
"Vietnam is already a (average) power of the region and in the future may become an even stronger power in the Asia region, the Indo-Pacific region, maybe even wider," the author of the article said.
