The Vietnamese government is implementing industrial policies to develop key sectors, even in areas that are difficult to compete in. (Photo: Hong Dat/TTXVN)
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The South China Morning Post on February 21 published an analysis by Janet Pau, CEO of the Asia Business Council, in which she assesses Vietnam, the Philippines, Indonesia, India, and Thailand as “Asia’s little dragons preparing to take off.”
In recent years, along with the other four countries, Vietnam has been attracting attention as a destination in the global supply chain strategy of “China +1.”
These economies all have in common a large labor force and potential consumer markets, providing growth opportunities both domestically and internationally.
These five countries recognize the importance of investing in human resources, focusing on improving access to education and the quality of teacher training.
They are also investing in infrastructure projects to build efficient connectivity networks and logistics.
These investments are concentrated in areas such as transportation, communication, energy, and digital networks.
The governments of these countries are also implementing industrial policies to develop key sectors, even in areas that are difficult to compete in.
The author of the article also highlights the challenges to growth that “the new economic dragons” face. They desire to attract foreign investment, but do not want that investment to displace domestic businesses and employment.
In addition, they need competitive production and labor costs, but must contend with inflation rates that outpace household income and savings growth.
They need large-scale industrialization, which often consumes a significant amount of energy, but they also want to ensure that industrial activities do not harm the environment.
The article concludes that these five economies have the opportunity to chart a growth path that promotes digitization, sustainability, and inclusiveness.
They need to prioritize initiatives that create green and digital jobs to meet the needs of an increasingly educated and demanding workforce.
Like the other four countries, Vietnam is also undergoing rapid industrialization.
These countries must employ sustainable measures to ensure that the economy continues to grow while mitigating the adverse impacts of climate change and natural disasters.
Thu Hang
