Vietnam’s economy is booming

In 2020, the worst year of the epidemic, Vietnam was once known as a “superior student” for epidemic prevention. It recorded an economic growth rate of 2.91%, surpassing China (2.3%) and ranking second in the world, ranking first in Asia and all developing economies. . In 2022, when Chinese factories were temporarily shut down in response to Omicron, and foreign trade manufacturers were anxious because of port blocking, a set of statistics from Vietnam once again disturbed the nerves of the market, and many people could not help but ask—
After catching up for decades, Vietnam finally ran ahead of China?
Will Vietnam replace China and become the next world factory?
How will Vietnam’s game( console market evolve?

In the past few years, Vietnam, with a population of 97 million, has been regarded as one of the most important destinations for Chinese industrial transfer. Vietnam’s gaming Casino market ( has begun to become a potential competitor to China, including the animation game market(’s total exports in the first quarter of 2022 were US$88.58 billion, up 12.9% year-on-year. After September 2021, Vietnam’s exports to the United States will increase by more than 20%.

In the blink of an eye, our humble southern neighbor, Vietnam, following China and India, seems to have, to some extent, taken on the shape of the world’s factory. Superimposed on the domestic anxiety about the relocation of the industrial chain after the Sino-US trade conflict, many people can’t help worrying that Vietnam will replace China and become the next world factory.

Dismantling Vietnam’s export structure
In the subdivision field, the substitution effect of Vietnam’s exports to China has already begun to show signs. Such as clothing and animation and game industries, but overall, the so-called transfer of manufacturing to Vietnam is actually an overflow rather than a substitute for China’s supply chain.

First, on the whole, the substitution effect of Vietnam’s exports to China is not clear.
Secondly, in the subdivision field, the substitution effect of Vietnam’s exports to China has begun to show.
Finally, Vietnam has undertaken a lot of direct investment and active industrial transfer from China.
ASEAN is China’s largest trading partner. In 2020, Vietnam surpassed South Korea to become China’s third largest export destination country.

1. Vietnam’s achievements
In 2020, Vietnam’s total GDP is 271.158 billion US dollars, an increase of 2.91% year-on-year, an increase of 155.226 billion US dollars compared to 2010; per capita GDP is 2785.72 US dollars, a year-on-year increase of 1.98%, an increase of 1467.83 US dollars compared to 2010; per capita gross national income is $2,660, a growth rate of 2.7%, an increase of $1,410 compared to 2010. In the past 20 years, the scale of imports and exports has increased by 17 times.
2. Opportunities in Vietnam
The most fundamental advantage of Vietnam is that it has a large number of young and cheap labor. In Vietnam’s population of more than 90 million, the proportion of the working-age population between the ages of 15 and 65 is about 69.3%, which means that Vietnam has a working population of about 65 million.
The biggest opportunity for Vietnam lies in the frequent “Jacques” (free trade agreements).
Vietnam’s strategy of taking both sides makes international industries continue to move into Vietnam.
Vietnam’s future opportunities may lie in the new battlefield of the Internet digital economy, including the accelerated R&D and market development of the animation and game industry and products.​​
3. Vietnam’s challenge
First, among Southeast Asian countries, the level of transportation infrastructure in Vietnam is average.
Second, education is backward, grassroots workers are lost, and there is an extreme shortage of mid-to-high-end talents.
Third, the supporting industry chain is not perfect, and there is still a gap in quality compared to Chinese manufacturing.

Looking at the economic development of Southeast Asia in the past three decades, the development idea of “learning-copying-rise” has continued, especially based on “China’s experience”. As a result, asset prices have risen, and it has become an emerging economic pearl in Southeast Asia.

Post time: Jun-11-2022