Vietnam overtakes Philippines in key economic growth indicators

Vietnam has overtaken the Philippines in several key economic indicators, marking a significant shift in Southeast Asian economic dynamics. In 1975, the Philippines' GNI per capita was approximately four times higher than Vietnam's. However, by 2024, Vietnam's GNI per capita reached $4,490, surpassing the Philippines' $4,470.

The gap is even more pronounced when measuring GDP per capita at purchasing power parity (PPP). For 2025, projections indicate Vietnam's GDP per capita (PPP) will reach approximately $18,089, significantly higher than the Philippines' $12,577. This represents a difference of over 40% in terms of purchasing power.

Economic experts, including Professor Cesar Polvorosa Jr., attribute this reversal to Vietnam's successful export-oriented manufacturing model. While the Philippines has relied heavily on services, Vietnam has integrated deeply into global trade through sectors such as electronics, machinery, and textiles. This shift has been supported by foreign direct investment and the movement of global supply chains into the region.