Author Topic: Vietnam economic success.  (Read 2058 times)

Offline RV Pundit

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Vietnam economic success.
« on: August 30, 2020, 08:55:55 PM »
This remind me the same argument we had about 15yrs ago with same fellows here - who were dismissing China economic model - and have been praying and waiting for it to unravel.

Now move on China.

Vietnam is on the move

One of the main reason

Through large and predominantly public investments Vietnam focused on developing both its physical and human capital. Improving its infrastructure has been an important factor too. By continuing to prioritise better infrastructure in transport, telecommunications and energy, Vietnam has not only created new jobs but also laid the foundations for future growth.

https://www.linkedin.com/pulse/economic-miracle-vietnam-mads-mohr/

Offline RV Pundit

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Re: Vietnam economic success.
« Reply #1 on: August 30, 2020, 08:58:54 PM »
Quote
Infrastructure has also been an important component of Vietnam’s development
strategy. Over the last twelve years, the government of Vietnam was able to sustain
infrastructure investment at 10 percent of GDP (Figure 1). This remarkably high level
of investment has resulted in a rapid expansion of infrastructure stocks and improved
access. From 2000 to 2005, the total length of paved roads increased three-fold from
30,000 km to almost 90,000 km
, resulting in significant improvements in rural
transport. The ratio of rural households connected to electricity grids also increased
from 73 percent to 89 percent during 2000-2005.6
 This success in small-scale and
rural infrastructure development is a key feature of Vietnam’s inclusive development
and poverty alleviation achievements, so often praised by the international donor
community.
https://ash.harvard.edu/files/vietnams_infrastructure_constraints.pdf

That is exactly where Kenya is now - and it need to move from 20,000Kms of roads to 60,000kms in 5yrs - that will be massive construction that will employ many and change the landscape.

Low hanging fruits.

Offline RV Kirgit

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Re: Vietnam economic success.
« Reply #2 on: August 30, 2020, 09:09:31 PM »
kenya is runs a capitalist system subservient to UK/US

Vietnam is former communist democratic state

Kenya will be stuck growing tea, coffee and flowers for Europe for another century.

Offline RV Pundit

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Re: Vietnam economic success.
« Reply #3 on: August 30, 2020, 09:26:15 PM »
Exactly. The thinking within gov circles is copy-paste from developed nations.

What we need for gov to step in seriously to build roads, railways, pipe water with dams, power stations and transmission, telecommunications, airports, pipelines and sewage systems

That will mean heavy public investment through heavy taxation, borrowing and such schemes.

After the hardware has been fixed.

Gov should then step out - and let the capital/market system fix the software issues.

Market economy or capitalism (greed/self-interest) - cannot fix roads or build railways that will never be profitable (public goods -aka communism).

We will continue to have a situation where people build million dollars home - and road leading to it - is like a moon surface - like you see in Nairobi Metro - sewage non-existence - piped water a dream - etc.. I rather we taxed everyone more - and use it to pave their roads and provide pipe water - because private sector will never pave any road.

The model that work.
Public sector - Communism ideals. Gov has to engage in china style central planning. Public good is motive - not Profit. It good enough if SGR has save lives and time. Only a fool will want public road or railway to turn a profit :)

Private sector - Capitalism - let the market decide the winner. Don't have command economy. Profit motive will lead to competition and innovation. Gov should only step in as regulator and control anti-market forces.

Individual - laissez faire.Carefree enjoy the best personal freedoms possible. Gov step in only to protect someone else rights and freedoms.

Anyway I think Ruto understands this.


kenya is runs a capitalist system subservient to UK/US

Vietnam is former communist democratic state

Kenya will be stuck growing tea, coffee and flowers for Europe for another century.