Hanoi (VNA) – Vietnam is classified as one of the outperformers amongemerging economies, according to a report of McKinsey Global Institute (MGI).
The report entitled “Outperformers: High-growthemerging economies and the companies that propel them” was launched onSeptember 12 as part of activities in the framework of the ongoing 27th World Economic Forum on ASEAN in Hanoi.
The report identifies the emergingeconomies which have achieved a track record of stronger and more consistentgrowth than their peers and examines key factors determining theiroutperformance.
Of the 71 major emerging economies thereport analyzes, 18 economies - about one in four - are classified as“outperformers”.
Vietnam is listed among the 11 economies thatgrew at a faster pace for a shorter period - 5 percent annually in the 20 yearsfrom 1996 to 2016. They are Azerbaijan, Belarus, Cambodia, Ethiopia, India,Kazakhstan, Laos, Myanmar, Turkmenistan, Uzbekistan and Vietnam.
Of the 71 major emerging economies thereport analyzes, 18 economies - about one in four - are classified as“outperformers”.
Vietnam is listed among the 11 economies thatgrew at a faster pace for a shorter period - 5 percent annually in the 20 yearsfrom 1996 to 2016. They are Azerbaijan, Belarus, Cambodia, Ethiopia, India,Kazakhstan, Laos, Myanmar, Turkmenistan, Uzbekistan and Vietnam.
Seven achieved more than 3.5 percent percapita GDP growth over 50 years, between 1965 and 2016. They included China,Indonesia, Malaysia, Singapore, the Republic of Korea and Thailand.
The report pointed out fundamentalelements the outperformers tend to have in common, including pro-growth policyagenda and the outsized role of large companies in driving productivity andgrowth.
A pro-growth policy agenda creates avirtuous cycle of productivity, income, and demand and which encouragessavings, ensures stability, and fosters competition and innovation, the reportsaid.
According to the report, the 18outperformers have almost twice as many large firms (defined as publicly listedones with annual revenue over 500 million USD) as other developing countries,adjusted for the size of the economies.
They have lifted about one billion peopleout of extreme poverty since 1990, helping to meet an emblematic United NationsSustainable Development Goal.
“Development economists have studied and written alot about policies that have driven growth in emerging economies, and of coursegood policy is a must,” said Jonathan Woetzel, a director of the McKinseyGlobal Institute who is also a McKinsey & Company senior partner inShanghai, the report’s lead author.
“But one of the insights of our research is thathighly competitive businesses have also played a critical role in propellingGDP growth—a role that is too often overlooked.”
“Decoding the combination of productivity-enhancingpolicies and the competitive dynamics in these outperforming emerging economiesprovides lessons for all countries, emerging economies and advanced economiesalike, at a time when productivity growth globally has waned,” said JamesManyika, chairman of the McKinsey Global Institute and a McKinsey seniorpartner in San Francisco.
Emerging economies have accounted foralmost two-thirds of the world’s GDP growth and more than half of newconsumption over the past 15 years.
The McKinsey GlobalInstitute (MGI) is the business and economics research arm of McKinsey &Company. It was established in 1990 to develop a deeper understanding of theevolving global economy.
The LauderInstitute at the University of Pennsylvania ranked MGI the Number 1 privatesector think tank in the world in its 2017 Global Go To Think Tank Index. -VNA
source