HELLO EVERYONE I WANT TO GET US BACK ON TRACK THE LAST FEW DAYS I HAD TO STEP AND OUT AND TAKE AN UNSCHEDULED TRIP TO FLORIDA BUT I AM BACK NOW AND WE NEED TO CATCH UP.
I MADE A POST ON EMERGING MARKETS WHICH YOU CAN READ HERE
AND RENI POSTED A COMMENT THAT IS WORTH ADDRESSING AS A POST.
SO HERE IS THE COMMENT FROM RENI
Ok great! So now I look for an example here to ‘set’ the concrete so -to-speak of what this looks like.
I am keeping my eye on Vietnam (a possible frontier market?). My sense is that it is set to explode economically as there is so much POTENTIAL and the social/economic order is quietly negotiating development yet laying low (under the radar) politically. It is ‘hot’ over there in Asia with the Philippines, South China Sea, etc.
or do I have this backwards- help me out here; this is heady stuff ML, tough to wrap one’s mind around. I have to go slow to digest it all. Your analogy of the mobile phone is a fine example of how it works. Simple, in a very complex system
thanks a million..
OK RENI AS OF SEPTEMBER 2016 VIETNAM WAS CLASSIFIED AS A FRONTIER MARKET I HAVE THE LINKS IN THE POST. THEIR ECONOMY IS GROWING BUT THEY STILL HAVE A LONG WAY TO GO BEFORE THEY CAN BE CONSIDERED A SECONDARY EMERGING MARKET AND THEN MOVE TO EMERGING MARKET
THIS LINK YOU PROVIDED GIVES US A GOOD IDEA OF EXACTLY HOW LONG THE PROCESS REALLY IS. WHILE IT IS TRUE THAT VIETNAM HAS MADE REMARKABLE STEPS ALL THAT WORK AND ALL THOSE STEPS HAVE ONLY RECENTLY MOVED THEM ONTO THE LIST AS A FRONTIER ECONOMY.
HERE LET’S HAVE A LOOK AT SOMETHING. HOW ARE ECONOMIES CLASSIFIED? VIETNAM IS CLASSIFIED AS A TIGER ECONOMY.
The term Tiger Cub Economies collectively refers to the economies of Indonesia, Malaysia, the Philippines, Thailand and Vietnam, the five dominant countries in Southeast Asia.
Tiger Cub Economies are so named because they follow the same export-driven model of economic development pursued by Hong Kong, Singapore, South Korea and Taiwan, which are collectively referred to as the Four Asian Tigers. Young tigers are referred to as “cubs”, the implication being that the four newly industrialized countries who make up the Tiger Cub Economies are rising Tigers. In fact, all four countries are included in HSBC’s list of top 50 economies in 2050, while Vietnam, Indonesia and the Philippines are included in Goldman Sachs’s Next Eleven list of economies because of their rapid growth and large population.
Overseas Chinese entrepreneurs played a prominent role in the development of the region’s private sectors. These businesses are part of the larger bamboo network, a network of overseas Chinese businesses operating in the markets of Malaysia, Indonesia, Thailand, Vietnam, and the Philippines that share common family and cultural ties. China’s transformation into a major economic power in the 21st century has led to increasing investments in Southeast Asian countries where the bamboo network is present
SO WE SEE HSBC SAYS VIETNAM WILL BE ONE OF THE TOP 50 ECONOMIES BY 2050, WHICH IS STILL A LONG WAY OFF.
GOLDMAN SACHS HAS VIETNAM CLASSIFIED IN THE NEXT 11 LIST OF ECONOMIES LET’S HAVE A LOOK
Vietnam Vietnam : Lower-middle-income economy, Fast emerging, Medium human development, Frontier market, Authoritarian regime, 3G country, APEC member, ASEAN member, EAS founding member
YOU CAN LOOK AT THE CHARTS OF GDP FOR THE ELEVEN COUNTRIES AND UNDERSTAND HOW LOW VIETNAM IS ON THE LIST AND WHY.
IF YOU WANT TO LOOK A LITTLE CLOSER AT VIETNAM WE WILL FIRST NEED TO UNDERSTAND WHAT A PLANNED ECONOMY IS.
Q: What are characteristics of a planned economy?
A: Quick Answer
A planned or command economy is one in which major functions, such as production and distribution of goods, are controlled by the government. In a planned economy, the government owns some or all production facilities and decides what to produce and how goods are priced. This is in contrast to a market economy, where production and distribution are decided by market forces with little or no government intervention
Q: WHAT IS A MARKET ECONOMY
A: market economy is an economy in which decisions regarding investment, production, and distribution are based on market determined supply and demand, and prices of goods and services are determined in a free price system. The major defining characteristic of a market economy is that investment decisions and the allocation of producer goods are mainly made by cooperative negotiation through markets. This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production established by a state or other body with control over economic resources.
ALRIGHT SO NOW WE HAVE THE BASICS NOW LETS LOOK AT THE ECONOMY OF VIETNAM
Vietnam’s socialist-oriented market economy is a developing planned economy and market economy. Since the mid-1980s, through the Đổi Mới reform period, Vietnam has made a shift from a highly centralized planned economy to a mixed economy that uses both directive and indicative planning through five-year plans. Over that period, the economy has experienced rapid growth. In the twenty-first century, Vietnam is in a period of being integrated into the global economy. Almost all Vietnamese enterprises are small and medium enterprises (SMEs). Vietnam has become a leading agricultural exporter and served as an attractive destination for foreign investment in Southeast Asia. In a similar fashion to other Communist countries after the end of the Cold War the planned economy of Vietnam lost the momentum for productivity and sustainable growth. In the current period the economy of Vietnam relies largely on foreign direct investment to attract the capital from overseas to support its continual economic rigorousness
AND NOW WE WILL LOOK AT WHAT A SOCIALIST-ORIENTED MARKET ECONOMY IS.
Socialist-oriented market economy
The socialist-oriented market economy is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy where the state sector plays a decisive role in directing economic development, with the eventual long-term goal of developing socialism
The socialist-oriented market economy is a product of the Đổi mới economic reforms, which led to the replacement of the centrally-planned economy with a market-based mixed economy based on state-owned industry. These reforms were undertaken to allow Vietnam to integrate with the global market economy.
ALRIGHT SO I SAID ALL THAT SO EVERYONE HAS THE UNDERSTANDING THAT WHILE IT APPEARS THAT VIETNAM IS MOVING AT LIGHTNING SPEED THEY ARE STILL YEARS AND YEARS AND YEARS AWAY FROM BEING AN EMERGING ECONOMY.
WHEN THEY MAKE IT TO THE WATCH LIST OF THE NYSE AND GOLDMAN SACHS AND OTHER INDEXES THAN I WILL PAY ATTENTION UNTIL THAT TIME I DO NOT EXPECT ANYTHING REMARKABLE FROM VIETNAM.
I HOPE THIS HAS HELPED ALL OF YOU AND PLEASE REMEMBER TO LIKE US ON FACEBOOK AND FOLLOW US ON TWITTER.
THANK YOU SO MUCH FOR BEING HERE….ML