Vietnam Talking Points

Photo by Keven Law

Welcome to the year of the Tiger, 4707 on the Lunar calendar. Looking back at the last ten years (4697 to 4707, if you will), the country that has been most tiger-like is Vietnam.  Of course, I am referring to the term “Asian Tiger,” given to the economic power houses Singapore, Hong Kong, Taiwan, and South Korea.  But if Vietnam is a tiger, it’s still a baby with a lot of growing up to do.

Walks Like a Tiger

Vietnam’s economic growth in the past decade has been incredible, second only to China’s near-10% growth.  This growth has caused many to start calling Vietnam the next Asian tiger.  However, there’s still a long way to go.  Let’s see how Vietnam stacks up to the other Tigers.

One of the most important metrics is GPD per capita.  It can be used as a very rough estimate of how much an average person in that country earns per year.  With a population of approximately 80 million (13th in the world), Vietnam’s per capita GDP is $2,781, putting it at #116 (World Bank, 2008).  In comparison, the Asian Tigers post impressive figures: Singapore $49,288, Hong Kong $43,922, Taiwan $ 30,100, and South Korea $27,939.

Source: World Bank 2008

A Reason for Hope

Although Vietnam has a lot of catching up to reach the levels of the other Tigers, I do see a big reason for hope.  That reason has nothing to do with politics or policy, but rather the people.  Vietnamese people are young–very young. Take a look at the age distribution below.  The average age of a Vietnamese person is 25.

That means half of the population is less than 25 years old (which makes me feel really old).  This is a lot of young, fresh minds in a culture that emphasis education.  It’s a country of great mathematicians and engineers.  I think they can do amazing things.

In Closing: The Key is Education

These young hungry minds are starving.  Less than a quarter of young adults will have a chance at a college education (Vu Quang Viet, Ph.D, United Nations).  Of those who do graduate, the majority will not qualify to work for an foreign company.  Vietnam’s work force is dominated by manufacturing and agriculture as many companies hesitate to invest in a white-collar work force that’s often viewed as inferior to that of India, Taiwan, other nearby neighbors.

The key for progress, as it has been for millenniums all over the world, is education.  Education and professional training will lead to more jobs, more opportunities, and the ability to afford a better quality of life.  So if the opportunity presents itself to teach someone how to program, solve an equation, learn English, or write a paper, take it!  The years 4707 and beyond count on it.

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