Vietnam no longer least developed Southeast Asian country

20-Nov-2014 Intellasia | Eleven | 6:00 AM Print This Post

Economic indices from 2014 report that Vietnam is no longer one of the four least developed Southeast Asian countries, according to announcements at the 11th Asean Business and Investment Summit.

Previously, the four least developed Asean members – Cambodia, Laos, Myanmar and Vietnam – were known collectively as the CLMV countries.

Vietnam, however, will no longer be grouped as such, thanks to its burgeoning economic growth.

“[Vietnam's] budget allocation toward the education and health sectors is higher than the other three countries. This means Vietnam will be seen in the front-line in terms of human resource development before long,” said an official from Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI).

In 2012, Vietnam had Human Development Index (HDI) of 0.617, an education index of 0.539, a health index of 0.874 and an income index of 0.501.

In comparison, Myanmar had an HDI of 0.498, an education index of 0.402, a health index of 0.721 and an income index of 0.428 in the same year.

Singapore, Asean’s leading economy, had an HDI of 0.895, an education index of 0.804, a health index of 0.966 and an income index of 0.925 in the same period.

Vietnam’s economic transition has been the second-fastest after China’s, and the poverty rate has dropped sharply.

Similarly, wealth growth in Cambodia has continues to rise steadily, and Laos also enjoys economic development.

Meanwhile, there is insufficient available data to measure Myanmar’s gross domestic product, making it hard to measure the development of its economic structure, according to a report published by the Economic Research Institute for Asean and East Asia.

“We’ve seen growth in foreign investment this year. But to catch up with Vietnam in terms of economic growth is a different story,” said Aung Naing Oo, the secretary-general of National Planning and Economic Development Ministry.

Vietnam has invested $513 million in Myanmar through seven business categories, mostly in the hospitality and tourism sectors.

Vietnam stands as Myanmar’s 8th largest foreign investor and the 4th largest in Asean, after Singapore, Thailand and Malaysia.


Category: Economy, Vietnam

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