Vietnam could emerge as developed economy: expert

[Viet]

A corner of Hanoi (Photo: VNA)


https://en.vietnamplus.vn/vietnam-could-emerge-as-developed-economy-expert/154054.vnp

Sydney (VNA) – The prolonging trade war between the US and China makes it easier for Vietnam to continue its upward trajectory toward becoming a developed economy, Bennett Murray recently wrote on the ‘Foreign Policy’ paper.

He cited the Vietnamese Ministry of Planning and Investment’s report as saying that the flow of foreign direct investment (FDI) into Vietnam surged by nearly 70 percent year on year in the first five months of 2019, which was a record since 2015.

According to him, much of that is thanks to US-China trade tensions that have left US firms and others much less certain about investing in China.

While Vietnam has been steadily luring investment from its northern neighbouring country for years, businesspeople themselves have mentioned the discord between Beijing and Washington as a reason for moving south, he said.

Vietnam will likely continue to thrive as it attracts a greater share of high-value manufacturing, notably from Foxconn, a Taiwanese manufacturing giant, which may even begin producing iPhones in the country.

The article mentioned challenges faced by Vietnam such as taxation system and inferior infrastructure. Demand for skilled workers will also outpace supply if growth moves too fast.

These problems will not stop the rise of Vietnam, one of the world’s fastest-developing countries, the article said, adding that its infrastructure will catch up and the quality of its labour force will increase.

Vietnam will also desperately want to attract hi-tech industries as part of the fourth Industrial Revolution, it said.

The article also listed Vietnam’s advantages such as low labour costs, signatory to free trade agreements with the Republic of Korea and the 10 remaining members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including Japan, Canada, and Australia.-VNA

 

[Viet]

Where Foxconn?
We need them to set up factories!

 

[MReynolds]

Plausible. As long there is no screw ups, it can be done within a generation due to lower population size.

 

[Farbeyonddriven]

Is Vietnam gonna thrive on totalitarian mercantilism too?

 

[Ultima Thule]

the next and only superpower of world will be VIETNAM, oh i forget SUPERPOWER OF THE UNIVERSE will be VIETNAM, am i right @Viet

 

[Viva_Viet]

Where Foxconn?
We need them to set up factories!

VN run out of workers now, Foxconn must pay quite high salary if they move the factories to VN cos they r late.

They only have no where else to move but VN when Xi stop exporting rare earth.

 

[cirr]

Yes, a "developed" country of some 100 million people with a GDP standing at about 70% of China's Guangxi Zhuang Autonomous Region, one of the poorest regions/provinces of China. Great.

 

[CHN Bamboo]

Vietnam supa powa 2030

 

[TopCat]

Vietnam is overly dependent on FDI. Chinese/Japs are not interested in investing labor intensive sectors in Vietnam anymore. Unless Vietnam find domestic capitals to fuel the economy it is a far cry considering current 2500 dollar per capita.

 

[Viet]

Is Vietnam gonna thrive on totalitarian mercantilism too?

I think yes. Vietnam is traditionally run by a man, a woman or a group with iron fist.

Vietnam is overly dependent on FDI. Chinese/Japs are not interested in investing labor intensive sectors in Vietnam anymore. Unless Vietnam find domestic capitals to fuel the economy it is a far cry considering current 2500 dollar per capita.

Our economy is transition. In 5 years or so, FDI money in labor intensive sectors will move to countries as BD. That is your chance to take it.

the next and only superpower of world will be VIETNAM, oh i forget SUPERPOWER OF THE UNIVERSE will be VIETNAM, am i right @Viet

Bro, a developed country is not superpower nor supertroll. Netherlands is developed. I never hear they claim to be one.

 

[Nike]

By when? This kind of prediction along with China collapse theories had been lingering since 2008, but China still kicking and already reach upper half Middle income level country surpassing the likes of Malaysia, Turkey and Brazil meanwhile Vietnam still stuck with low income and the lowest gdp among ASEAN

 

[Viet]

By when? This kind of prediction along with China collapse theories had been lingering since 2008, but China still kicking and already reach upper half Middle income level country surpassing the likes of Malaysia, Turkey and Brazil meanwhile Vietnam still stuck with low income and the lowest gdp among ASEAN

Ok you can ask yourself when Indonesia becomes a developed country?

 

[Nike]

Ok you can ask yourself when Indonesia becomes a developed country?

Much faster than you, Our gov. Spending is the same as your entire pathetic GDP

Btw we are delivered results not bragging

 

[TaiShang]

The prolonging trade war between the US and China makes it easier for Vietnam to continue its upward trajectory toward becoming a developed economy, Bennett Murray recently wrote on the ‘Foreign Policy’ paper.

Actually, Vietnam is one of the beneficiaries of trade war, but not the top. Even Mexico, Japan, and South Korea benefited so far from the trade war than Vietnam did.

I would hope Vietnam benefited, too, but, it simply does not have the required physical structures and human capital as others do. But, definitely will benefit more than India will.

But, this OP sounds very much like an Indian superpower 2012 argument. Way too early.

Hopefully, Vietnam will not become like India.

Btw we are delivered results not bragging

Exactly. Hopefully, Vietnam will not have a growth in bragging.

 

[nufix]

Much faster than you, Our gov. Spending is the same as your entire pathetic GDP

Btw we are delivered results not bragging

Summary from the video by the end of 2019, in just five years Indonesia managed to:

Add 4,119 km of roads to 3000+ km of roads that have been built since 2014
Build 51 km of bridges, 330 of them are tension cable bridges
65 dams (irrigation + hydropower)
22,333 special housing + 43,158 apartment units for poor people
494,169 government supported housing

and we haven't even mentioned the MRT, LRT, power generation, ports, airports, sport venues (Asian Games and PON) while Vietnam still stuck with their MRT, coz no money hahaha.