Vietnam’s per capita GDP equal to Malaysian’s 25 years ago
Vietnam’s per capita GDP equal to Malaysian’s 25 years ago
Vietnam is still in the group of the lower middle-income countries and the country’s per capita GDP today is equal to the level of Malaysia in 1988, Thailand in 1993, Indonesia in 2008, the Philippines in 2010 and South Korea in 1982.
The gap in per capita GDP of Vietnam compared to other countries in the region is at risk of widening.
A report by the General Statistics Office of Vietnam presented at the seminar "Vietnam's economic institutional reform for integration and development in the period 2015-2035" last week said that Vietnam’s per capita income can compare to that of South Korea 30-35 years ago, Malaysia 25 years ago, Thailand 20 years ago, Indonesia and the Philippines 5-7 years ago.
Vietnam’s economy has maintained a high growth rate but the scale of the economy is small compared to other countries in the region.
Vietnam’s GDP growth has been high for a long period, averaging 6.9%/year from 1990 to 2014. As a result, Vietnam has moved from the group of the world's poorest countries to the group of middle-income countries with per capita GDP of $2,052, 21 times over that of 1990.
However, compared with some countries in the region, Vietnam’s GDP of more than $186 billion in 2014 is still small. Indonesia's GDP is 4.8 times more than that of Vietnam, Thailand 2 times, Malaysia 1.8 times, Singapore 1.7 times and Philippines 1.5 times. correct?
Although Vietnam has become the country with average income, the gap in per capita GDP betwee Vietnam and other countries in the region is still large and it may widen.
Since 2008, Vietnam has officially become a country with average per capita income of $1,145, which increased to $2,052 in 2014.
Vietnam’s Global Competitiveness Index - GCI is much lower than that of Thailand, Malaysia and Indonesia, according to the Global Competitiveness Report of the World Economic Forum (WEF).
Regarding to labor productivity, in the period 1994-2013, Vietnam’s labor productivity increased 4.87%/year, the highest growth in ASEAN. However, except Brunei and the Philippines, the absolute distance measured by labor productivity gap of Vietnam with most ASEAN countries of higher level of development increased over the period.
If Vietnam and these countries still maintain the growth of average labor productivity as in the 2007-2012 period, Vietnam can catch up with labor productivity of the Philippines in 2018 and catch up with Thailand in 2069.
Minister of Planning and Investment Bui Quang Vinh said that institutional differences are hindering Vietnam's economy, requiring Vietnam to reform.
Nguyen Dinh Cung, Director of the Central Institute for Economic Management (CIEM), said Vietnam's economy is in danger of falling behind. With a growth rate of 5%, by 2020, Vietnam's GDP will be equivalent to 7% of Thailand, and if Vietnam grows at 7%, it then may catch up with Thailand.
