The Vietnamese government is implementing policies to develop key industries, even in areas where they are unlikely to be competive. (Photo: VNA) Hanoi (VNA) – Vietnam, the Philippines, Indonesia, Vietnam, India andThailand are Asia’s little tigers that are set to take flight,wrote Janet Pau, executive director of the Asia Business Council in an articlepublished by the South China Morning Post on February 21.
According tothe article, in recent years, the five countries have garnered interest as a “China Plus One” destination for global supply chains. Thefive economies have in common large labourforces and potential consumer markets, offering opportunities for both domestic andinternational expansion.
Pau said that those countries recognise the importance of investing in human capital, focusing onexpanding access to education and improving teacher training. They are alsoinvesting in infrastructure projects to build robust connectivity and efficientlogistics networks. These investments encompass areas such as transport,communication, energy and digital networks, she wrote.
She noted that governments of those countries are implementingindustrial policies to grow key sectors, even in areas where they are unlikely to becompetitive.
The author also pointed out the difficultiesthat the new dragon economies have to face. That is a desire to attract foreigninvestment, but does not want that investment to displace domestic enterprisesand jobs.
“They needto provide competitive manufacturing and labour costs, but face inflationaryprices that outpace household wages and savings growth. They also need to industrialiseat scale, which is usually energy-intensive, but want to ensure industrialactivities do not destroy the environment,” wrote the author.
The five economies have the opportunity to chart growth paths thatfoster greater digitisation, sustainability and inclusion, according to the article. However, they shouldprioritise initiatives to create green jobs and digital jobs to cater to theneeds of their increasingly educated and demanding young workforces.
The author said the five countries are undergoing rapid industrialisation, which is taking a toll on the environment. Thus, these countries mustadopt sustainable measures and ensure that their economies continue to growwhile fighting the adverse effects of climate change and natural disasters, she wrote./.
