Việt Nam emerges as Asia’s rising economy: Thai newspaper

Việt Nam emerges as Asia’s rising economy: Thai newspaper

Việt Nam is increasingly asserting its position as an emerging economy in Asia, with signs it may overtake Thailand on fronts, according to Thailand's newspaper The Nation.

Workers produce mechanical components at Misumi Việt Nam Company at Linh Trung Export Processing Zone in HCM City. — VNA/VNS Photo

Việt Nam is increasingly asserting its position as an emerging economy in Asia, with signs it may overtake Thailand on fronts, according to Thailand's newspaper The Nation.

The newspaper on Tuesday reported that Việt Nam has unveiled an ambitious national development plan to invest around 1.5 trillion baht (VNĐ1.28 quadrillion or US$48.7 billion) - in 250 infrastructure and housing development projects nationwide, aiming to achieve 8 per cent GDP growth in 2025 and sustain double-digit growth in subsequent years.

The ultimate target is to transform Việt Nam into Asia’s next 'tiger economy' and reach high-income status by 2045.

Việt Nam’s economy has long relied on exports and foreign direct investment (FDI), leaving it vulnerable to external shocks such as the recently imposed retaliatory tariffs by US President Donald Trump.

To reduce this risk, the Vietnamese Government is now stimulating domestic demand through massive infrastructure spending.

At the end of 2024, Party General Secretary Tô Lâm announced the start of a 'new era of development', signalling Việt Nam’s most sweeping economic reform in decades. The government’s strategic vision is to emulate the Republic of Korea (RoK) and Taiwan (China) by lifting millions out of poverty and joining the ranks of Asia’s most advanced economies.

Việt Nam’s rapid rise is underscored by its income growth: per capita annual income in Hà Nội has jumped from $1,200 in 1990 to $16,385 today, fuelled by the country’s transformation into a global manufacturing hub.

However, challenges remain. Việt Nam’s traditional low-cost, export-driven growth model is slowing, forcing a shift towards high-tech industries, green energy and private sector expansion.

From Thai perspective

Nonarit Bisonyabut, senior research fellow at the Thailand Development Research Institute (TDRI), said that Việt Nam is implementing evidence-based reforms, such as bureaucratic restructuring to improve efficiency, enabling rapid economic advancement.

He noted that China and the RoK are prioritising Việt Nam over Thailand. Both nations are winners in the digital age – with China rising alongside the US as an AI leader.

“If Thailand fails to reform seriously, it risks losing competitiveness and may eventually fall behind Việt Nam,” Nonarit concluded.

Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), told Thai-language daily newspaper Krungthep Turakij that Việt Nam is undergoing a major adjustment, taking advantage of changes in US tariffs and global trade rules.

"Việt Nam knows the world has changed, so it must rely more on itself and push through structural reforms,” Kriengkrai said.

“They’ve started with bureaucratic reforms, cutting ministries and expenses to reduce redundancy. They know if they don’t restructure, they’ll lose out in global competition. This is a good example Thailand should follow,” he said.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce, also highly appreciated Việt Nam's strategy of expanding infrastructure investment, considering this a proactive step to maintain growth and cope with the impact of global trade policy.

“Việt Nam is growing from exports and rolling out major infrastructure projects. We are too slow. We need faster execution, clear policies and political stability,” he noted. 

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