Vietnam has great potential to become African partner: report hinh anh 1Vietnam recorded an average annual GDP growth rate of 7 percent in the last 30 years. - Illustrative image (Photo: Vietnamplus)

Vietnam recorded an average annual GDP growth rate of 7 percent in the last 30 years. The Southeast Asian nation essentially eliminated extreme poverty, leading to an improvement in the wellbeing of millions of its people, the article said.

It noted that Vietnam has been able to make huge progress despite a long colonial history and decades of war.

The article also pointed out key factors that led to Vietnam’s success, including strong political leadership, a state willing to work with private sector, and investment in human resource development.

With an ambition to reach high-income status by 2045, Vietnam seeks new market frontiers and production bases, the article said. But Vietnam’s trade with Africa is limited. Although it has an extremely export-oriented economy, the export value only accounts for 201 percent of GDP. African nations could gain a lot from Vietnam’s approach.

Vietnam offers an opportunity for shared learning and growth, it said, adding technology transfer, information sharing and learning by doing is part of what Vietnam is putting on the table for Africa.

To take advantage of this, African governments are seeking partnership with Vietnam, the report stated.

The global development cooperation paradigm is changing, and Africa needs non-traditional partners to learn from and grow with. Vietnam is one such partner, the report said.

Much of Africa has been on the receiving end of the North-South development cooperation where Western donors and multilateral institutions provide aid and technical assistance to countries on the continent.

Progress has been made from this type of cooperation, but much is still needed to transform the continent.

The Chinese have arrived on the scene with the Belt and Road initiative to a mixed reception. While the North-South relations and the Chinese influence will continue to be a critical part of development cooperation for Africa, leaders on the continent are increasingly seeking more horizontal partnerships based on equity, trust, and shared prosperity.

What Vietnam has achieved in the last thirty years, and what it is on course to achieve in the next, makes the country a good candidate for low- and middle-income countries in Africa to partner and share prosperity.

Vietnam’s impressive economic growth in the last three decades is second only to China.

In 1985, Vietnam had roughly the same levels of economic output as the Democratic Republic of Congo (DRC) and Sierra Leone, with GDP per capita at 231 USD, 241 USD, and 225 USD, respectively.

In a span of a little over thirty years the country recorded an average annual GDP growth rate of 7 percent, so that by 2020 its economic output/year at 2,786 USD is at least five times higher than that of the two sub-Saharan Africa countries. By doing so, it essentially eliminated extreme poverty and led to an improvement in the wellbeing of millions of its people.

Colonization and persistent conflicts are used as explanatory factors in the narrative for slow economic development on the African continent. Vietnam offers an alternative story. The country has been able to make huge progress despite a long colonial history and decades of war. Strong political leadership, a state willing to work with private sector, policy experimentation and investment in human capital have been critical for the success Vietnam enjoys today.

Vietnam’s impressive growth has been overshadowed by the ascendency of China and its increasing sphere of influence on the African continent.  However, in the past few years, Vietnam’s progress has caught the eye of African leaders because they see similarities and opportunities to emulate what Vietnam has done so well.

At the same time, with an ambition to reach high-income status by 2045, Vietnam seeks new market frontiers and production bases. Although an extremely export-oriented economy, with export value accounting for 201% of GDP, Vietnam’s trade with Africa is limited. If the right strategies are used, African nations could gain a lot from Vietnam’s approach towards the continent, the article concluded./.

VNA