In recent news, the United States President, Joe Biden, has cemented a new strategic partnership with Vietnam.
This historic agreement signifies a significant milestone, as it has been over half a century since the last American soldier departed from Vietnam. President Biden personally journeyed to Hanoi to formalize this pact, highlighting its importance.
The agreement encompasses various facets, one of which is a groundbreaking chip partnership between the two nations. Additionally, it includes a substantial $7.8 billion deal for Vietnam Airlines, entailing the acquisition of 50 Boeing 737 passenger aircraft. This strategic move is poised to bolster Vietnam Airlines’ capabilities, expand its fleet, and elevate the quality of its services. Consequently, this enhancement is expected to invigorate Vietnam’s burgeoning tourism sector.
Forecasts suggest that this comprehensive agreement will exert a favorable influence on Vietnam’s economy. The bolstering of collaboration across domains such as trade and investment promises to spawn new employment opportunities and fuel economic growth within Vietnam.
Furthermore, the two countries have committed to deepening their cooperation in various spheres, including political and diplomatic relations, economic affairs, trade, and investment partnerships, as well as fostering innovation-driven inclusive economic development.
Remarkably, Vietnam has undergone a remarkable economic transformation, transitioning from a centrally planned economy to a market-driven one. This transition has propelled Vietnam from its status as one of the world’s most impoverished nations to a lower middle-income economy within a single generation. Over the span of 2002 to 2021, GDP per capita surged 3.6 times, reaching an impressive figure of nearly US$3,700. Poverty rates, defined at US$3.65 per day in 2017 PPP, plummeted from 14 percent in 2010 to a mere 3.8 percent by 2020.
As for the future, Vietnam’s economic growth is anticipated to experience a slight slowdown, with a projection of 6.3 percent in 2023, down from a robust 8 percent in the previous year. This dip is attributed to moderated growth in the services sector, alongside the impact of rising prices and interest rates on households and investors. However, there is optimism that GDP growth will rebound to 6.5 percent in 2024, with a potential decline in domestic inflation from that point onward.
The agriculture sector plays a pivotal role in sustaining economic growth and ensuring food security, contributing 14 percent to GDP and employing 38 percent of the population in 2020. Remarkably, despite the challenges posed by the COVID-19 pandemic, Vietnam earned over US$48 billion in export revenues from this sector in 2021.
Additionally, Vietnam’s commitment to improving living standards is evident in improved health outcomes. Infant mortality rates saw a substantial decline from 32.6 per 1,000 live births in 1993 to 16.7 in 2020. Furthermore, life expectancy has shown remarkable progress, rising from 70.5 years in 1990 to an impressive 75.5 years in 2020.
Vietnam has set ambitious goals for the future, aiming to transition into a high-income country by 2045. This transformation will be guided by environmentally sustainable and inclusive practices, including a commitment to reducing methane emissions by 30 percent and halting deforestation by 2030. Furthermore, Vietnam aspires to achieve net-zero carbon emissions by the year 2050, reflecting its dedication to a greener and more sustainable future.
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Source: Vietnam Insider