Vietnam positioned as next potential Asian Tiger economy

Vietnam is emerging as a potential candidate for the next ‘Asian Tiger’ economy, according to an analysis by The Edge Malaysia Weekly. The term historically refers to Hong Kong, Singapore, South Korea, and Taiwan, which achieved rapid industrialization and high-income status through export-led growth and global supply chain integration.

Since the ‘Doi Moi’ reforms began in 1986, Vietnam has seen significant economic shifts. GDP per capita rose from 608 USD in 1986 to 4,018 USD in 2024, with purchasing power parity reaching 14,415 USD in 2024. Between 1986 and 2007, the country maintained an average annual GDP growth rate of 6.93%.

The nation is increasingly benefiting from global manufacturing shifts as international companies seek to diversify production away from China. Vietnam’s advantages include its strategic geographic location, a large workforce, and an extensive network of trade agreements.