Despite the challenges faced by the global economy, including the COVID pandemic, conflicts, inflation, debt, and climate emergency, Vietnam has many strengths that have contributed to its rapid growth.
According to Insider Monkey, a news website, many developing countries are located in Asia and Africa, which have undergone significant urbanization and population growth over the past few decades. Vietnam has been able to leverage its manufacturing and infrastructure investment to achieve impressive economic growth rates. In 2022, Vietnam’s GDP growth rate reached 8%, making it one of the fastest growing economies in the world.
Other countries such as India and Rwanda have also achieved significant economic growth rates by diversifying their economies and investing in education and infrastructure. For instance, India has eased restrictions on foreign investment and launched initiatives such as “Make in India” to promote domestic production and export. Rwanda has made progress in developing the tourism, information technology, and manufacturing sectors.
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Furthermore, the rise of surprise economies is a trend to watch out for as countries that were once considered poor or underdeveloped have experienced rapid growth in recent years. Multinational corporations have played a huge role in driving local growth in developing countries. For example, Alphabet Inc. has four separate offices in India and is expanding in Africa through the expansion of its own network on the continent, as well as through investments in renewable energy.
The BRICS countries, including Russia, have recently shown a willingness to create a new global reserve currency, which poses a potential challenge to the global dominance of the US dollar. The BRICS and the Shanghai Cooperation Organization are moving closer to de-dollarization, with an increasing focus on using local currencies for payments. The changing dynamics of the global economy is reflected in the fact that the GDP share of the G7 countries has decreased while the GDP share of BRICS countries has increased.
Photo: Olivier Ochanine
Vietnam has also benefited greatly from receiving the largest share of the US supply chain transferred from China as part of the US-China trade war. This change has created jobs, increased exports, and fueled growth in the country’s manufacturing sector.
Another major multinational that has entered the Vietnamese market in recent years is Amazon.com, Inc. In fact, Amazon has been supporting 140 local online e-commerce businesses in Vietnam since 2019, providing them with training, resources, and technical support to help them expand their reach and access global markets.
In addition, in 2022, Amazon signed an agreement with Vietnam’s Ministry of Industry and Trade to train 10,000 local online retailers over the next five years to sell products to the company’s global customers. This is part of Amazon’s efforts to increase its presence in Southeast Asia and expand its e-commerce offerings to customers in the region.
This move by Amazon is expected to help boost Vietnam’s economy and create more job opportunities for locals. It also highlights the potential of Vietnam’s e-commerce sector and its attractiveness to major players in the global market.