VietNamNet Bridge - Listed among the four least developed countries in ASEAN, Vietnam is one of the world’s biggest luxury goods markets.

 

Vietnam’s GDP per capita in 2014 was equal to Thailand’s GDP per capita in 1993, which means that Vietnam is about 20 years behind Thailand in economic development.

Vietnam’s performance compared to ASEAN countries was the main topic at the workshop on institutional reform held by the Ministry of Planning and Investment on August 28.

Notably, this was the first time it has lagged behind a government agency – the General Statistics Office (GSO).

GSO said Vietnam’s GDP per capita in 2014 was $2,052, 21 times higher than that of 1990, but just equal to Malaysia’s in 1998, Thailand’s in 1993, Indonesia’s in 2008 and the Philippines’s in 2010.

Vietnam is 30-35 years behind South Korea, 25 years behind Malaysia, and 5-7 years behind Indonesia and the Philippines.

Vietnam’s GDP per capita in 2014 was just equal to 3/5 of Indonesia’s, 2/5 of Thailand’s, 1/5 of Malaysia’s, ¼ of South Korea’s and 1/27 of Singapore’s.

Dr. Nguyen Dinh Cung, head of the Central Institute of Economic Management (CIEM), expressed his deep concern about Vietnam’s falling behind other countries. 

“The danger is very high if Vietnam does not change,” Cung said. 

“Vietnam must not hesitate to carry out economic reform. If it does, it will lag even further behind regional countries. There is no way back,” he said.

Most recently, at the conference on improving business competitiveness held by the Vietnam Chamber of Commerce and Industry (VCCI) in Da Nang August 25, VCCI Chair Vu Tien Loc said the government was aware of the risk.
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Though being the least developed economy in ASEAN with low GDP per capita, Vietnam is still a big luxury goods consumer.

Most luxury car brands exist in the country, with the GDP per capita just a little above $2,000 per annum, including car brands Bugatti, Rolls Royce, Bentley and Maybach. 

In August 2014, Rolls Royce opened its first branch in Hanoi. Three months later, Bentley inaugurated its first distribution agent in Hanoi. Lexus, Audi and BMW also distribute their products through authorized distribution agents in Hanoi and HCM City.

According to Asia Briefing magazine, super-rich Vietnamese have ordered 10 of the 50 Mercedes-Maybach S600s priced at VND9.6 billion the manufacturer plans to make in 2015 for the global market.

Wealth Report 2015 of Knight Frank showed that Hermes, a luxury brand, which has been present in HCM City since 2012, reported a high growth rate of 20-30 percent per annum. 

Dat Viet