With the support of sustainable economic growth, Vietnam’s gross domestic product per capita shall be higher than the gross domestic product of the Philippines, which is $3,497.51. Based on the International Monetary Fund (IMF), it shows that Gross Domestic Product GDP per capita divides the worth of economic production by the population. It is a way of measuring the distribution of economic wealth amongst a society.
However, if the IMF’s results prove unreliable, it’s unlikely that Filipino incomes will match Vietnam’s in the following five years. In 2025, the quantity of $4,805.84 per capita in Manila shall be lower than the quantity of $5,211.90 in Hanoi. This may in turn reflect serious consequences for poverty levels, which the federal government believes may increase because of this of the crisis.
For analysts, all of it comes all the way down to the effectiveness of the pandemic response:
“Vietnam is responding very well to the pandemic and can continue to expand, albeit at a slower pace. On the other hand, the Duterte administration’s insufficient and still lukewarm response has led to the worst economic collapse in the country’s history,” said Sonny Africa, executive director of the IBON Foundation, a think tank.
When it involves public health, says Calixto Chikiamco, president of the Economic Freedom Foundation, a gaggle of former finance secretaries, the Philippines has lagged behind slow reforms akin to opening the economy to more foreign investment.
“Vietnam has more capable institutions, is very aggressively liberalizing foreign investment rules and has adopted the right strategy, focusing on increasing agricultural productivity, light manufacturing growth and exports,” he said in a text message.
Source: philstar.com
