Viet Nam Human Rights
Vietnam new Asian tiger: Business Times
Vietnam is expected to accelerate its economic recovery from the pandemic this year after having recorded a 2.6 percent increase in gross domestic products (GDP) in 2021, Singapore’s Business Times reported.
Once among the poorest countries in the world, its economy is now booming and the World Bank describes it as one of the most dynamic and emerging countries in the entire East Asia region, Business said in an article published last week, calling Vietnam a “new Asian tiger.”
Singapore’s DBS Group Research forecasts Vietnam's GDP growth to reach 8 percent in 2022, boosted by an accommodative monetary policy. The International Monetary Fund (IMF) has predicted that Vietnam will climb three spots to rank third in GDP among ASEAN member states this year, thanks to the fast-growing middle class and the rise of ultra-rich people.
Knight Frank’s latest Wealth Report estimates there were about 19,500 high-net-worth individuals in Vietnam in 2020, defined as those with assets of at least 1 million USD, the article said. By 2025, that number is expected to grow by almost 25 percent to top 25,000, it added.
Business Times attributed the robust growth of the economy to increasing flows of foreign investment into the country. Many Singapore companies, including CapitaLand and Keppel, have invested heavily in the country as they seize the abundant opportunities.
“Vietnam has long been known as Southeast Asia's coding farm, where talent and wages are in a sweet spot for companies to use it as a base for their technical development,” it noted.
The article also referred to Vietnam as the largest solar power producer in Southeast Asia today with 16.6 gigawatts of installed capacity as of 2020. Vietnam's construction industry is set to continue its recovery in 2022 as several large-scale infrastructure projects move through different stages of development, it further said./.
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All comments [ 20 ]
The country is making autocratic capitalism work unusually well.
Containing the pandemic allowed Vietnam to quickly reopen businesses, and it is now expected to be the world’s fastest growing economy this year.
Even more impressive, its growth is driven by a record trade surplus, despite the collapse in global trade.
This breakout moment for Vietnam has been a long time in the making. After World War II the “Asian miracles” — first Japan, then Taiwan and South Korea, most recently China — grew their way out of poverty by opening to trade and investment and becoming manufacturing export powerhouses.
The conditions that made the original miracles possible are gone.
The postwar baby boom is over. The era of rapid globalization, with growing trade and investment flows, is over. Economic growth is slowing worldwide.
In this environment, the superpowers no longer ignore the tactics that the earlier miracles used to get an edge.
An even bigger threat to Vietnam’s continuing growth is that the country has been ruled for nearly half a century by the same authoritarian party.
With no opposition, autocrats can force very rapid growth, but often their unchecked policy whims and obsessions generate erratic boom-and-bust cycles, which stall development.
These hurdles make what Vietnam’s unusually competent autocracy has achieved so far all the more impressive — but also much more difficult to sustain.
Vietnam has sustained a similar pace for three decades. Even as global trade slumped in the 2010s, Vietnam’s exports grew 16 percent a year, by far the fastest rate in the world, and three times the emerging-world average.
While other emerging countries spend heavily on social welfare in an effort to appease voters, Vietnam devotes its resources to its exports, building roads and ports to get goods overseas and building schools to educate workers.
Vietnam has become a favorite destination for export manufacturers, leaving China in search of cheaper wages.
It also steers foreigners’ money in the same direction. Over the last five years, foreign direct investment has averaged more than 6 percent of G.D.P. in Vietnam, the highest rate of any emerging country.
That skilled labor is helping Vietnam move “up the ladder,” perhaps faster than any rival, to manufacture increasingly sophisticated goods.
In a protectionist era, Vietnam is also a trend-bending, Communist champion of open borders, a signatory to more than a dozen free trade agreements
Can Vietnam continue its success, despite potential obstacles such as shrinking populations, declining trade and an autocratic government’s tenacious grip on power?
Over the last five years, no large country has increased its share of global exports more than Vietnam has.
its government has not made the kind of egregious policy mistake that typically retards economic development in autocratic nations.
Vietnam has sustained strong growth so far, largely free of the classic excesses, like large government deficits or public debts.
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