When you hear economic superpowers, you will probably think about the United States, China, Germany, or Japan. But not too long from now, you will have different opinions. And this would be due to the new rising economic powers.
Vietnam The economy of Vietnam is a socialist-oriented market economy, which is the 44th-largest in the world as measured by GDP. But If we want to know the future of any nation then first we have to look at its history. So Vietnam has a long history of wars and distraction. Due to this Vietnam lost its factories, cities, and countless citizens. Plus Vietnam is a communist country and it followed the Soviet-era economic model. For a long time, they did not see any economic growth. All this started to change from 1986 when Vietnam launched the Doi moi policy. Vietnam economically moved very fast after suffering for years from the war tragedy. This economic miracle of Vietnam is based on manufacturing, which was boosted by trade liberalization, domestic deregulation, and investment in human and physical capital. And now after this pandemic, Vietnam has a high chance of attracting investments. As they can provide similar facilities like China. So, this could become a game changer for Vietnam.
India After the end of British rule, India followed the Soviet economic model with a protectionists policy for economic growth. But after the fall of the soviet union in 1991, India switched to a capitalist economy. After that India's GDP almost doubled every 5 years. Today the major contributors of the Indian economy are the service sector, industry, and agriculture. India has a huge local market and its labor cost is also less compared to other countries. And this could attract huge investments in the coming time. Although problems like social and political unrest, lack of Infrastructure, Wealth inequality, and Bad economic policies of the government, could resist investors.
Philippines Philippines economy is driven by its service, industrial and agriculture sector. Mainly the service sector. This sector accounts for 60% of the country's GDP and 56% of employment today. The country's professionals speak necessary languages, in addition they have less wages than the western countries. Also the country's average age is 25 years. That means more people available to work. Hence this makes Philippines one of the largest business process outsourcing country. Apart from this the Philippines government is trying attract foreign direct investments. And bringing up the infrastructure is their way to go. Several economic zones are already active and have attracted investments. As the industrial sector contributes 30% to the country's GDP. Yet the agriculture which once accounted for one third of Philippines GDP, went down to 9% in 2018. Yet government is making efforts to make that stable again. As to grow in faster, the balanced combination of agriculture, services and industry is required.
Malaysia The economy of Malaysia is the third largest in Southeast Asia. Today manufacturing sector and service sector of Malaysia is largest contributor to its economy. The share of GDP of manufacturing sector peaked at close to 31% in 1999. Thereafter, it declined almost continuously every year. The services sector's share of the GDP has gradually increased from 32% in 1974 to 53% in 2016. Malaysia is strategically situated between Singapore and Thailand. Due to that Malaysia provides the perfect investment opportunity for foreign businesses while promoting convenient access to other expanding markets within Asia. Through with continued technological development and infrastructure growth, Malaysia could emerge as economic superpower.
Indonesia The economy of Indonesia is the largest in Southeast Asia and is one of the emerging market economies of the world. Indonesia has made enormous gains in poverty reduction, cutting the poverty rate by more than half since 1999. The country hasn't suffered negative GDP growth since 1998. Indonesia's economy is based on trade, manufacturing, and services. Manufacturing contributes 20 percent of Indonesia's GDP. Yet the economic growth of Indonesia is lower than expected from past few years. The large and growing population is major advantage for Indonesia. As this could attract foreign investors. But this could happen only if infrastructure improvements are made to promote higher GDP growth. Although this will help Indonesia to get out of the middle income trap. And rise as a economic power. So, in the coming time these could be the next countries to show a significant influence in the world economy. Yet the pandemic we all are going through makes things more uncertain to predict.
0:00 Introduction 0:51 Vietnam 2:43 India 3:53 Philippines 5:23 Malaysia 7:01 Indonesia