In recent years, Vietnam, a neighbor of the mainland, has experienced rapid economic development. Vietnam, Turkey, Argentina, Indonesia and South Africa are known as the Outlook Five. A question arises: What are Vietnam's advantages in recent years? In fact, the situation of a country's economic development is very complicated and involves problems in all aspects. Taking Vietnam as an example, Vietnam's economic development has a lot to do with itself and its neighboring countries. Today, we're going to talk about that.
First, let's look at Vietnam's economic level in 2023. In 2023, Vietnam's total GDP will be 10,221.81 trillion VND, with a growth rate of 5.05%. This is equivalent to about 430 billion US dollars, and based on Vietnam's population of nearly 100 million, Vietnam's per capita GDP is about 4,284 US dollars. In 2023, Vietnam's five municipalities – Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and Can Tho – contributed 35% to the country's GDP growth, accounting for 57.9% of the country's fiscal revenue, 54.6% of foreign direct investment, and 80.2% of the total number of international tourists.
It can be seen that the driving role of the above five cities is very strong. At the same time, due to the relatively high cost performance of Vietnam tourism. In 2023, Vietnam received a total of 12.6 million tourists, a lot more than the 8 million expected at the beginning of the year. In particular, several large Vietnamese cities such as Hanoi and Ho Chi Minh City have very busy routes. A question arises, what are the advantages of Vietnam's economic development?
As we all know, Vietnam went through 30 years of war. Then came a 10-year border standoff. During this period, Vietnam's economic development was impossible. In 1986, Vietnam began its famous reform and opening up. However, due to the unstable situation, in the eighties and nineties, Vietnam's economic development was not ideal. It was not until the mid-to-late 90s that Vietnam's advantages gradually emerged, and the economy developed rapidly.
The premise of economic development is that the situation is stable and there are no relatively large wars or local conflicts in the country. I have to say that in this regard, several countries in Southeast Asia with rapid economic development basically do not have big problems. In Vietnam, for example, there are basically no separatist tribes or semi-separatist forces, and there is no possibility of large-scale conflict. Compared with Vietnam and Thailand, there are some Southeast Asian countries that are much worse, which can be called the "late Tang Dynasty feudal town separation" model. In such an environment, it is simply impossible to develop the economy.
Second, Vietnam has a large number of young and middle-aged laborers, and the wage level is relatively low. More importantly, compared with neighboring countries, Vietnam's young adults are more hard-working and hard-working due to traditional influences. In 2019, Vietnam had a total population of more than 96.2 million people. The average age of the total population is only 32.5 years old, of which 69.3% are aged 15-64. The "demographic dividend" has undoubtedly brought abundant new labor force to Vietnam, prompting the economy to maintain rapid growth for a long time.
In order to encourage childbearing, Vietnam has also introduced a series of policies. In recent years, Ho Chi Minh City has repeatedly issued policies to encourage childbirth, including the 2030 Fertility Rate Adjustment Plan. Set a target of 1.6 children per woman of childbearing age by 2030. It is also proposed to give subsidies to families with two children in various aspects such as housing, employment, and children's enrollment in nursery schools (too similar).
Third, Vietnam has a long and narrow land area from north to south and has a large number of coastal ports, which are conducive to the import, export and transshipment of goods. Since the late 90s, a series of Japanese and Korean companies have begun to invest and build factories in Vietnam, forming a piece of industrial parks. Up to now, many Vietnamese university students have learned Japanese or Korean because they have the opportunity to enter foreign-funded companies and even work in Japan and South Korea. In recent years, there has been a significant increase in the number of young Vietnamese people going to Japan.
Of course, the above aspects alone are not enough to support the necessary conditions for economic development. In order to attract investment, Vietnam has introduced a series of measures and policies. For new investment projects, Vietnam generally grants different forms of tax incentives. At the same time, Vietnam also grants location tax incentives to eligible economic zones and high-tech parks, specific industrial zones and areas with socio-economic difficulties.
Of course, one thing is very important, and that is Vietnam's flexible diplomacy. Vietnam has relatively good diplomatic relations with China, the United States, Japan, South Korea, Australia, and even some European countries. China has signed a series of trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-EU Free Trade Agreement (EVFTA), and the Vietnam-EU Investment Protection Agreement (EVIPA). Entering Vietnam for investment is conducive to commodity exports and trade transshipment.
For example, in recent years, some mainland enterprises have invested in Vietnam, taking into account Vietnam's advantages in all aspects and the good relations with various economies. From the perspective of economic development, Vietnam is very flexible, which is conducive to its own production and import and export.
In addition, Vietnam's proximity to the mainland and its ability to rely on the mainland's welfare in all aspects is also an important aspect. In 2023, the bilateral import and export volume of goods between China and Vietnam will be 229,793,472,800 US dollars. In fact, China mainly imports fruits, flowers and raw materials from Vietnam, and exports machinery and electronic products to Vietnam. In particular, flat panel display modules, audio and video equipment, and lithium battery products are exported to Vietnam in a very large volume.
In recent years, in order to further develop the economy, Vietnam has been carrying out various efforts and infrastructure construction, such as the further improvement of railways, roads and ports. In 2023, Vietnam will complete and put into operation seven sub-projects of the North-South Expressway with a total length of about 411.6 kilometers, which will greatly accelerate the economic interaction between various regions. In the past two years, the international financial market has changed, and we ordinary people will inevitably be affected and affected to a greater or lesser extent.
The common people in the mainland are very traditional, and like to deposit the spare money saved by thrift in the bank, which is usually saved for a period of five years. Why? Because the interest on bank deposits is stable and reliable, although it is not much, it is relatively safe and worry-free. However, since the summer of 2022, the interest rate on savings deposits of Bank of China has been on the road of non-stop. As a result, some people put their money into the stock market or futures trading market, but it backfired and almost all of them were trapped.
Speaking from the heart, everyone's thoughts and practices can be understood. However, wouldn't it be better if we had more understanding and mastery of some financial management channels to diversify personal property risks, such as gold, rare metals or savings long-term insurance of Anping Insurance, etc.?
There are many more questions about the economic development of various countries. The author will talk to you slowly in future articles.