In an article titled ‘Vietnam, the Rising Tiger Economy’ published in Manila Bulletin in late 2017, Dr Florangel Rosario Braid wrote: “The introduction of socialist-oriented market economic reforms has made it (Vietnam) one of the world’s successful market economies.”
“Private ownership was encouraged and state enterprises were restructured to operate under market constraints. Its manufacturing, information technology, and high-technology business now form part of the national economy. Its poverty rate declined due to equitable policies such as egalitarian land distribution intended to reduce inequality,” she said.
The analyst commented that the fast growth in entrepreneurship and productivity is attributed to the emphasis on upgrading innovation competencies by encouraging the development of science and technology. Vietnam has one of the highest school enrolment in the world.
Other policies pursued by Vietnam such as the establishment of export processing zones, the control of inflation, business environment improvement and institutional reform are also highly appreciated.
Meanwhile, The Diplomat emphasized the two APEC events successfully organized in Vietnam.
The APEC 2006 summit in Hanoi was Vietnam’s coming-out party, its debut on the world economic stage, while APEC 2017 was the time for Vietnam to shine after many years of global integration.
By the time APEC 2006 took place, Vietnam’s GDP had increased by twofold from US$25 billion in 1996 to US$66 billion in 2006, and the GNI from US$310 to US$760. However, the FDI to Vietnam was still below US$2.4 billion annually.
By the time Vietnam organized APEC for the second time, Vietnam’s GDP had reached US$203 billion in 2016, or three times higher than 2006, while FDI had soared by four times to US$11.8 billion by 2015, reflecting great interest by international investors in Vietnam.
Forbes in December 2017 drew the public’s attention with the article ‘Vietnam's Economic Growth Will Accelerate In 2018 As Investors Flood The Country’.
It pointed out that the Vietnam economy has been thriving with GDP reaching US$202 billion in 2017, despite some negative factors, including the drought, higher mining production and lower ore export prices, and the US decision to withdraw from the TPP.
Forbes quoted SSI Research as reporting that, as the committed FDI capital in Vietnam was high in 2017, the disbursement would be high in 2018.
Foreign investors are attracted by the young labor force which can be trained and are willing to work with minimum monthly wage of around US$172.