With the support of sustainable economic growth, Vietnam's gross domestic product per capita will be superior to that 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 value of economic output by population. It is a way of measuring how economic wealth is distributed to society.
However, if the IMF results are untrustworthy, the income of Filipinos is unlikely to match Vietnam's in the next five years. In 2025, Manila $ 4,805.84 per head is seen lagging behind Hanoi's $ 5,211.90. In turn, it could reflect serious consequences on poverty levels, which the government says could increase due to the crisis.
For analysts, it all comes down to how effective the pandemic response is:
"Vietnam responds very well to the pandemic and can continue to expand, albeit at a slower pace. On the other hand, the Duterte administration's inadequate and still warm response has led to the worst economic collapse in the country's history, " said Sonny Africa, executive director at the IBON Foundation, a think tank.
On public health aside, Calixto Chikiamco, who is the president of the Foundation for Economic Freedom, a group of former financial secretaries, the Philippines is lagging behind slow-moving reforms such as opening up the economy to more foreign investment.
"Vietnam has more capable institutions, is very aggressive in liberalizing the rules for foreign investment, and has adopted the right strategy with a focus on increasing agricultural productivity, light manufacturing growth and exports," he said in a text message.
Source : philstar.com