Charting Progress: Vietnam’s GDP, Trade, and Industrial Growth (2010-2022)
The years 2010 to 2022 have seen stability and expansion in Vietnam’s economy. The visual shows the economic dynamics of the nation over a ten-year period, highlighting the GDP growth rate annually, which highlights the country’s resilience in the face of regional and international difficulties. Additionally, it draws attention to the consistent contribution of trade to GDP, which reflects Vietnam’s growing influence on the international scene. The graph also shows the manufacturing and industrial sectors’ expanding and considerable influence on the economy, indicating a move toward modernization and industrialization. Vietnam’s strategic economic policies and strong reactivity to shifting economic conditions are demonstrated by this data narrative.
Established policies like the Doi Moi economic reform, which laid the foundation for Vietnam’s market-oriented strategy, supported the country’s economic resilience in the face of global problems in 2020. Furthermore, during a turbulent time, Vietnam’s commerce was supported by the government’s strategic application of free trade agreements, such as the EU-Vietnam Free commerce Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). During the epidemic, this strategy and programs like the National Foreign Direct Investment Strategy for 2021–2030 supported growth and cushioned the economy. Following the COVID-19 epidemic, Vietnam’s National Assembly passed Resolution 43 in 2022, which was a comprehensive package meant to revive the country’s economy. To lessen the burden on businesses, specific measures included a 2% reduction in VAT and CIT deductions. A significant budget, almost US$15 billion, was set aside for modernization, infrastructure development, and healthcare advancements. In addition, the government offered favorable loans to support company recovery together with social security subsidies for job creation and training. These focused monetary and fiscal policies were essential in launching Vietnam’s economy’s post-pandemic recovery. The Vietnam Briefing addresses the effects and extent of these policies in detail.
Seizing the Momentum: Vietnam’s Path Forward
In times of global unpredictability, Vietnam’s resilience and economic expansion bear witness not just to its excellent policymaking but also to the unwavering dedication of its people and leadership. One issue still stands as we consider this dynamic economy’s amazing journey: how can the international community use Vietnam’s achievements as a model to strengthen its own economy? The search of creativity and teamwork together holds the key to the solution. Using Vietnam’s experience as a model, let’s consider how we may use these ideas to face our own issues with the same determination and bravery.
Child labor has persistently posed a global challenge, acting as a barrier to children’s education and jeopardizing their future. According to figures from the World Bank, the number of working children significantly decreases as the rate of educational attainment increases. This observation spans the period between 1977 and 2017, revealing a potential inverse correlation between child labor and education attainment.
Situation in Lebanon
World Bank figures indicate a significant decrease in the rate of children in the labor market between 2000 and 2020; however, there was a slight increase in 2021. The issue is intricately complicated, with various factors severely affecting public school education. Firstly, the number of students enrolling in public schools from refugee camps has notably increased since 2011. Locally, the severe financial crisis has deeply impacted the Ministry of Education’s budget since 2019, compounded by other factors such as the devaluation of the Lira, the Beirut Port explosion, and COVID-19 lockdowns.
Statistics reveal that child labor is more prevalent among male children in Lebanon. However, relying solely on these figures is insufficient, given the existence of different forms of informal labor not addressed by the World Bank and the International Labor Organization.
In the absence of updates from international institutions or local government agencies, I turned to various surveys conducted by local stakeholders and international NGOs. These surveys shed light on the deteriorating quality of education, particularly in public schools and, to a lesser extent, within private schools.
Roadmap towards a solution
Various stakeholders, including the Lebanese government and international institutions, should collaborate to initiate a comprehensive multi-stakeholder plan aimed at reversing the deteriorating quality in the public school system. In addition to financial support, this plan should address critical factors such as the number of schools, the availability of qualified teachers, and curriculum improvements.
On the government front, it is imperative to establish coordination among three key ministries: Education, Labor, and Social Affairs. This collaborative effort will create a legal framework addressing child labor issues, implementing a high-quality educational curriculum, and promoting awareness within the most affected segments of society.
Most countries in the Arab region are witnessing high rates of poverty due to the poor management held by its authorities. There’s lack of economic development which is directly affecting the situation in each of the countries. There are several reasons behind delaying the growth of the economies and one of them is not understanding the real purchasing power of the consumer. In order to better understand it , countries should start evaluating their gross domestic product based on purchasing power parities rather than exchange rates.
What are purchasing power parities?
Purchasing Power Parities measure the amount of currency needed in a certain country to buy the same basket of goods and services that a single unit of another country’s currency can buy. PPPs make it possible to compare the output of economies and the welfare of their inhabitants in real terms, thus controlling for price level differences across countries.
PPPs are used for analysis and measurements in many areas by a wide variety of users, ranging from international organizations to policymakers, academia and the private sector. Due to significant differences in price levels across countries, market exchange rate‐ converted GDP does not accurately measure the relative sizes of countries or the levels of material well‐being. For this reason , we can see how the illogical health care, education and living costs in the countries are leading to poverty and unfortunate productivity.
In the below visualizations we can see how the income gaps between countries have been narrowed after observing the results in 2005 and in 2011.
Moreover, in the below visualization, we can see that Egypt surpassed Saudi Arabia in having the largest economy in 2020 when we compared GDP based on PPPs.
% change of GDP based on PPP between 2017 and 2020
We can see also that Egypt witnessed the highest % change in GDP with 17.63 % while Sudan observed a major decrease by 19.75%.
Recommendations:
Countries should use PPPs because it allows them to analyze their income or consumption data in globally-comparable terms by taking account of the purchasing power differences between countries.
Without PPPs, comparisons of income and consumption levels would typically rely on market exchange rates, which generally underestimate the purchasing power of consumers in poorer countries, making them appear too poor relative to those in richer countries, compared with the real differences in their living standards.
Use PPPs to set a real poverty line which describes the real deprivation level of the individual . This person is considered poor if his or her income or consumption falls below this line.
Does a Country’s Borrowing Policy Affect its Population’s Income level?
The Case of Lebanon
DOLLAR? LBP?
WHAT’S THE EXCHANGE RATE TODAY?
DISCOUNTING CHECKS? AT WHAT RATE?
WHAT???? 20%????
THIS MEANS I’M LOSING 80% OF MY MONEY!!!
I WAS DOING OK BUT NOW I CAN BARELY MAKE ENDS MEET…
This has unfortunately been the sad reality that
theLebanese people have been living for since
October of 2019.
WHY?
Because a Banking | Financial | Currency | Crisis
Made a Huge Bubble Burst!
BUT HOW DID WE GET HERE?
Lebanon has had a budget deficit for over 20 years and has been borrowing from external parties
for as long as we can remember.
So, as Lebanese citizens, we are born indebted.
A country’s national debt affects its population’s income level:
Growing debt has a direct effect on economic opportunities
If high levels of debt crowd out private investments, workers would have less to jobs do and therefore earn lower wages
Countries with LOWER DEBT exhibit HIGHER INCOME levels per capita.
SO HOW HAS LEBANON’S DEBT BEEN CHANGING OVER TIME?
WHAT CAN WE DO TO MAKE THINGS BETTER?
Potential Solutions include but are not limited to:
Supporting Production and Services Sectors leading to more Job Creation and eventually More Wages
Improving Trade Agreements leads to more exports which would Reduce Budget Deficits and make the country economically healthier
Attracting Foreign Direct Investmentsby providing a healthy capital market (ex: improving Reporting Practices) which leads to More Investments & More economic opportunities, More Jobs and eventually More wages
IS THERE PROOF?
Countries with Open Trade Policies seem to have higher income levels
Countries with Updated Reporting Practices also have higher income levels
