Vietnam: Next Economic Miracle after China?

12/5/2019

Vietnam seems most likely to be the candidate for the next economic miracle after China in coming decades on the back of its young and large workforce with rapid and stable GDP growth. There are a lot of similarities between these two nations if you move the timeline of China development 10 or 20 years back: young population with a median age of ~30, low urbanization at mid-30%, GDP per capita at the level of $2,000, and a pro-business government under a single dominating party. China began to open up the economy 40 years ago whilst Vietnam did it 20 years back. Since then, Vietnam followed every footstep that China did in entering WTO, privatizing state-owned enterprises, and opening up the financial markets. In terms of growth rate, Vietnam took over China in 2018 with its GDP expanding at 7.1%. It is widely expected that Vietnam will continue to grow faster than China in 2019 and 2020.


Vietnam seems most likely to be the candidate for the next economic miracle after China in coming decades on the back of its young and large workforce with rapid and stable GDP growth.  There are a lot of similarities between these two nations if you move the timeline of China development 10 or 20 years back: young population with a median age of ~30, low urbanization at mid-30%, GDP per capita at the level of $2,000, and a pro-business government under a single dominating party.  China began to open up the economy 40 years ago whilst Vietnam did it 20 years back.  Since then, Vietnam followed every footstep that China did in entering WTO, privatizing state-owned enterprises, and opening up the financial markets.  In terms of growth rate, Vietnam took over China in 2018 with its GDP expanding at 7.1%.   It is widely expected that Vietnam will continue to grow faster than China in 2019 and 2020.