Asian tiger awakened: Vietnam
What is an Asian tiger awakened?
Among some of the stumbling economies around the world resulted by the US-China Trade War, Vietnam has been recognize as winner of the dispute. Bloomberg, SCMP and ASEAN Post each writes: ‘Vietnam is the biggest winner of the trade war.’
The country is growing at the fastest rate in Southeast Asia with a tremendous increase in foreign direct investments and a boost in the manufacturing sector. Foreign investors have been particularly keen in the country’s manufacturing sector, an effect hastened by the trade war.
Rapid growth is now caused by the redirection of goods diverted from China to avoid paying trade duties in the US. Thus, shift in supply chain and production has boosted Vietnam’s economy by about 8% this year according to Japanese investment bank Nomura.
Chartered Accountants in England and Wales’s Economic Insight, expects Vietnam’s economy to expand by 6.7% in 2019.
Last year, Vietnam’s GDP grew by 7.1%, the largest growth reported among the globe and among Southeast Asia, ahead of Thailand and Singapore.
When businesses grow in line with economic activities, the country will be posed attractive to the overseas elite labor force and become a career ground for the middle-class.
With a growing awareness in its digital economy, the country will be home to a vast middle-income population in the next decades. The government’s recent push on SMEs development onto the global market has been strategic in improving the country’s economic environment, prompting businesses and institutions to train higher-qualified individuals to fulfill oncoming career roles.
Euromonitor International indicated that Vietnam is currently Southeast Asia’s fifth biggest urban market.
If Vietnam continues to transition to a more urban-centric and global-based economy, growth targets will be reached. Population will climb to a middle-class income status. Forecasts based on consumer data suggest Vietnam will be Southeast Asia’s largest urban market in a decade’s time.
As the government implements necessary reform strategies to drive urbanization and economic growth, hopes remain high for what may be an Asian tiger awakened.