Hanoi (VNA) – Vietnam is increasingly asserting its position as an emerging economy in Asia, with signs it may overtake Thailand on fronts, according to Thailand's newspaper The Nation.
The newspaper on August 19 reported that Vietnam has unveiled an ambitious national development plan to invest around 1.5 trillion THB (1.28 quadrillion VND or 48.7 billion USD) - in 250 infrastructure and housing development projects nationwide, aiming to achieve 8% GDP growth in 2025 and sustain double-digit growth in subsequent years. The ultimate target is to transform Vietnam into Asia’s next “tiger economy” and reach high-income status by 2045.
Growth drivers and challenges
Vietnam’s economy has long relied on exports and foreign direct investment (FDI), leaving it vulnerable to external shocks such as the recently imposed retaliatory tariffs by US President Donald Trump.
To reduce this risk, the Vietnamese Government is now stimulating domestic demand through massive infrastructure spending.
At the end of 2024, Party General Secretary To Lam announced the start of a “new era of development”, signalling Vietnam’s most sweeping economic reform in decades. The government’s strategic vision is to emulate the Republic of Korea (RoK) and Taiwan (China) by lifting millions out of poverty and joining the ranks of Asia’s most advanced economies.
Vietnam’s rapid rise is underscored by its income growth: per capita annual income in Hanoi has jumped from 1,200 USD in 1990 to 16,385 USD today, fuelled by the country’s transformation into a global manufacturing hub.
However, challenges remain. Vietnam’s traditional low-cost, export-driven growth model is slowing, forcing a shift towards high-tech industries, green energy, and private sector expansion.
From Thai perspective
Nonarit Bisonyabut, Senior Research Fellow at the Thailand Development Research Institute (TDRI), said that Vietnam is implementing evidence-based reforms, such as bureaucratic restructuring to improve efficiency, enabling rapid economic advancement.
He noted that China and the RoK are prioritising Vietnam over Thailand. Both nations are winners in the digital age — with China rising alongside the US as an AI leader.
“If Thailand fails to reform seriously, it risks losing competitiveness and may eventually fall behind Vietnam,” Nonarit concluded.
Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), told Thai-language daily newspaper Krungthep Turakij that Vietnam is undergoing a major adjustment, taking advantage of changes in US tariffs and global trade rules.
"Vietnam knows the world has changed, so it must rely more on itself and push through structural reforms,” Kriengkrai said.
“They’ve started with bureaucratic reforms, cutting ministries and expenses to reduce redundancy. They know if they don’t restructure, they’ll lose out in global competition. This is a good example Thailand should follow,” he said.
Poj Aramwattananont, Chairman of the Thai Chamber of Commerce, also highly appreciated Vietnam's strategy of expanding infrastructure investment, considering this a proactive step to maintain growth and cope with the impact of global trade policy.
“Vietnam is growing from exports and rolling out major infrastructure projects. We are too slow. We need faster execution, clear policies, and political stability,” he noted./.
