Why Vietnam Is Still Relatively Poor Despite Its Manufacturing Boom
Why Vietnam Is Still Relatively Poor Despite Its Manufacturing Boom 📌 Key Points at a Glance Vietnam has become an important manufacturing and export center, but average productivity and income per worker remain below those of advanced economies. A significant share of production is still concentrated in assembly and foreign-led supply chains, where much of the highest-value technology, design and intellectual property may remain outside domestic firms. The next stage of development depends on stronger Vietnamese companies, better skills, deeper technological capabilities and a shift toward higher-value industries. Vietnam can look like an economic success story and still remain relatively poor at the same time. Factories are expanding, exports are important, and multinational companies increasingly use the country as part of their Asian production networks. Yet rapid industrialization does not instantly translate into advanced-economy wages or living standards....