Skip to main content

Story Of Vietnam Economic Miracle

Vietnam Economic Miracle

30 years ago, Vietnam was one of the poorest countries in the world. Now its economic growth rivals China, so how did Vietnam do it?

1. Vietnam invested hugely in its people and infrastructure -  Since half of its 95 million people are under 35. It invested heavily in primary education and ensured internet access is cheap and universal. Impressively, its growth is inclusive - women's employment rate is within 10% of men's.

2. The country embraced global free trade - It joined ASEAN in 1995, signed a trade deal with the US in 2000 and joined the World Trade Organisation in 2007. All these agreements lowered tariffs on imports and exports boosting growth.

3. Vietnam transformed its domestic economy - It made it easier to start and run a business and manufacturers became a key driver of the country's growth. 1 in 10 smartphones is made in Vietnam and it's South East Asia's biggest exporter of clothes. Vietnam's transformation is impressive. In 1993 58% of people were living in poverty. In 2016 just 10% of people were. But the country still faces challenges. Its level of press freedom is one of the worst in the world and its population is ageing.