"Can Vietnam Become the New China?" The Atlantis Report
Can Vietnam become The New China ? -- Vietnam Economic Report
The Atlantis Report: Premiered 37 minutes ago
Can Vietnam become The New China ? -- Vietnam Economic Report Although Vietnam remains a one-party communist state, it's liberalizing rapidly. Vietnam is transforming from one of the world's poorest economies to an economic success story.
Vietnam is today one of the Fastest Growing Economies in the world. Opening up to trade and reforming the economy has helped Vietnam lift 40 million people out of poverty over the last three decades.
The Vietnamese people managed this remarkable fast transition from low-income to middle-income status. Vietnam joined the WTO only in 2007.
This naturally creates economic growth after ten years or so. China joined in 2001 and reached its highest growth in 2007. WTO membership imposes standard rules which have to be followed by all countries.
China's Deng Xiaoping was quicker to embrace capitalism than Vietnam, which is still an agricultural country. Deng changed China in 1980, and Vietnam changed itself in 1986.
The downside is that Vietnam will get all the headaches associated with growth, such as expensive real estate, traffic caused by cheaper cars, and pollution from industrialization.
Business in Vietnam is booming, but its success has raised a few eyebrows in Washington, with US President Donald Trump complaining that Vietnam's trade practices are worse than China’s.
Vietnam is emerging as a winner of the trade war but could become a potential new target of Washington.
Today, China invests in labor-intensive enterprises in Vietnam and use Vietnam as a transit point as more companies consider Hanoi as a new hub of manufacturing. Viet Nam is today emerging as an alternative to Chinese manufacturing in the face of a trade war.
But it's still an agrarian economy, the world's third-largest exporter of rice. Vietnam is one tenth the size of China. Vietnam still got a lot of work to catch up.
Vietnam is still one of the poorest and most corrupt countries in the world. It is ranked 125th in GDP per capita and 117th in the corruption perception index. Vietnam looks set to confirm a widening trade surplus, with the latest estimates putting the amount at $9.9 billion for 2019, compared to the $7.2 billion recorded in 2018.
Initial numbers have shown exports up 8.1% to $263.4 billion, with imports up 7% to more than $250 billion. Smartphones and garments were amongst the largest income earners, while fabrics and electronics were major imports.
Meanwhile, the industry and construction sector accounted for 34.4% of Vietnam's economy. Welcome to The Atlantis Report. Despite that, Vietnam had only 20 years of peace. It has transformed its communist economy to become one of the world's fastest-growing nations.
While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments. Vietnam is coming of age.
Attracted by its favorable demographics dynamic, productive labor force, much-improved infrastructure, and stable politics. Viet Nam is a fast-growing and ever-changing place. #1. Land and Infrastructure:
An example of Viet Nam's quick growth is its highways, which you can see being built all over the country, yet still few can afford a car to drive on them.
The country, with its many landscapes, mountains, and rural areas, is looking to provide electricity to all its people - setting the goal to be fully electrified by 2020.
In between, the country is also opening doors for outsiders to be able to buy property. China is expected to buy most of this available land.
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