Viet Nam News
Vietnam’s trade as a percentage of gross domestic product (GDP) reached over 200 percent in 2017, the highest level for any country with over 50 million people in the World Bank’s data.
The information was revealed in a report by the World Economic Forum. (WEF)
Of the world’s twenty most populous countries, Vietnam blows away number two Thailand at 122 percent.
The measure is calculated by adding the value of exports and imports then dividing the figure by GDP. Economies with high measures are typically rich and small. Hong Kong, Singapore and Luxembourg all have rates over 300 per cent. Companies in these countries and territories make products for export because the domestic market is too small to consume all of their output.
According to the report, Vietnam’s exceptionally globalized economy is a result of its focus on exports for economic growth. The country opened up its cheap labor market to foreign investors and become a hub for low-cost manufacturing.
Currently, Vietnam Nam is a major exporter of electronics and apparel, with the United States and China as the main destinations for its goods.
Unlike in some fast-growing economies, Vietnam’s new prosperity has been shared. The proportion of people in extreme poverty fell from above 70 percent in the early 1990s to around 10 percent in 2016, the WEF said. (vns)