According to Mr. Ed Fuller from Forbes “For many generations, Vietnam remains a complex enigma, depending on our personal experiences and memories of the countries.” However, when asked: “Which Asian country has roared a head over the past quarter-century, with millions of its people escaping poverty? Which Asian economic, still mainly rural will be the continent next dynamo?”. It was not China or India that stand out for the Economics, but rather; Vietnam.
Since 1990, the growth of Vietnam economic has averaged 7% annually, second only to China. This growth has conversed Vietnam from being classified as one of the world’s poorest into middle-income statues in recent years, a tremendous change. Not only that, as reported in the Economics, foreign direct investment in Vietnam has hit a record of $11.3 billion in the first half of 2016, up by 105% from the same period last year, despite a sluggish global economy.
Tourism also take up an important part of Vietnam economic growth. As seen in the report of the WTTC (The World Travel & Tourism Council), in 2015, Vietnam tourism has brought for its country over 16 billions USD, approximately 9.3% the total GDP. With the goals of attracting 55 millions tourists a year ( both international and national arrivals), Vietnam has already had a lot of ongoing and incoming projects regarding upgrade and build new facilities as well as bilateral agreements with Laos, Cambodia and Myanmar.
There are many reasons behind Vietnam’s rapid growth of economic. With the population of 90 millions with mostly young people, Vietnam is vast with human resources, and with the intense focus on education, skilled employments is also not a problem.
Geologically, Vietnam is lucky to be sitting on China’s doorstep as companies hunt for low-cost alternatives, hence the open for allies is very flexible. Nationally, the government has encouraged competition among its 63 provinces, Ho Chi Minh City has forged ahead with industrial parks, Danang has gone high-tech and the north is scooping up manufactures as they exit China. The result is a diversified economy that able to withstand shocks, including a property bust in 2011.
Over all, Vietnam is in the growth to be Asian next economic tiger and for many people, they have no doubt one day, Vietnam will be great and stand side with not only other tigers, but even economic dragons. The Economics once said in their article: “Unlike either China or India, Vietnam lacks the advantages of being a continent-sized economy, so the lessons of its rise are more applicable to other developing countries, especially those nearby. Vietnam is a model for countries trying to get a foot on the development ladder. With luck, it will also become a model for those trying to climb up it.”
By Yen Ha