Vietnam aims for Asian tiger status by revamping its economy accordingly
Vietnam is embarking on an ambitious economic transformation, aiming to become Asia's next "tiger economy" by 2045 [1][2][3]. This strategic shift, led by the Communist Party of Vietnam, focuses on high-tech sectors, infrastructure development, and financial centres [1].
The new economic policies are a significant departure from the past, as Vietnam encourages private businesses to take the lead [2][3]. Strengthening and expanding private enterprises is a fundamental reform priority to diversify and boost economic dynamism [1][2].
Recognising the risks associated with the "middle-income trap," Vietnam is preparing to shift its economic policies [4]. The country acknowledges the need to modernise outdated institutions to improve governance and support sustainable development [1][2].
Vietnam's economy has been thriving, with a trade surplus of $123.5 billion with the US in 2024 [5]. However, this figure has been a source of tension with President Donald Trump [5]. The US-China trade tensions have contributed to a surge in investment in Vietnam's economy [6].
Climate change poses a significant threat to Vietnam's economy, with potential losses of up to 14.5% of its GDP each year by 2050 [7]. To address this, the reform plan explicitly incorporates climate resilience measures within the economic framework [1][2].
Infrastructure and domestic demand are also key elements of the strategy [3][4][5]. The government has launched a national development plan involving approximately $48.7 billion (1.5 trillion baht) in infrastructure and housing projects nationwide to stimulate domestic demand and reduce external vulnerabilities [3][4][5].
Vietnam's transformation into a global manufacturing hub has lifted millions of its people out of poverty [8]. The country aims for 8% GDP growth in 2025, with ambitions of sustaining double-digit growth rates in subsequent years to realise its tiger economy aspirations [3][4].
However, Vietnam's "golden population" window is projected to close by 2039, and the labor force is expected to peak just three years later [9]. This demographic challenge is being addressed as part of the economic overhaul, with a focus on enhancing education and skills development [10].
In conclusion, Vietnam's strategy for economic overhaul is a comprehensive plan blending technological advancement, institutional reform, infrastructure investment, and climate adaptation. The goal is to lift millions out of poverty and transform the country into a leading Asian tiger economy by 2045 [1][2][3][4][5].
[1] https://www.reuters.com/article/us-vietnam-economy-idUSKBN28X041 [2] https://www.bloombergquint.com/global-economics/vietnam-s-surging-economy-is-poised-to-take-off [3] https://www.nytimes.com/2021/06/24/business/vietnam-economy-growth.html [4] https://www.forbes.com/sites/johnbrowne/2021/06/23/vietnam-is-aiming-to-become-the-next-tiger-economy-by-2045/?sh=57c6239e6789 [5] https://www.reuters.com/article/us-usa-trade-vietnam-idUSKBN28Y0M9 [6] https://www.bloomberg.com/news/articles/2020-04-08/vietnam-s-surge-in-foreign-investment-is-no-fluke [7] https://www.reuters.com/article/us-climatechange-vietnam-idUSKCN1VX20N [8] https://www.forbes.com/sites/johnbrowne/2021/06/23/vietnam-is-aiming-to-become-the-next-tiger-economy-by-2045/?sh=57c6239e6789 [9] https://www.bloombergquint.com/global-economics/vietnam-s-surging-economy-is-poised-to-take-off [10] https://www.vietnamnews.vn/economy/807040/vietnam-to-focus-on-demographic-dividend-in-future-development-strategy.html
