Vietnam’s remarkable journey from low to middle-income status lifted 40 million people out of poverty between 1993 and 2014 supported by the ambitious program of economic reforms, should be a model for Sri Lanka grappling with multiple issues including the present US trade tariffs that are stifling trade with the world’s largest economy, an economist said.
“Being one of the poorest South East Asian nations the 1980s was a bleak era for Vietnam which had to rely on external aid. However, today with the second set of reforms Vietnam has emerged as a vibrant economy in the region,” said the Chief Economic Policy Advisor to the Ceylon Chamber of Commerce, Shiran Fernando.
Elaborating on the opportunities that Sri Lanka should look at rather than the challenges he said Vietnam which underwent one of the worst times in the past bounced back as a strong economy with its second generation reforms program.
Vietnam’s per capita growth since 1990 has been second only to China’s, averaging 5.6 percent a year as of 2017. Vietnamese are now better educated and can expect to live longer than citizens of most countries with similar income levels. The chamber’s economist said the world needs to understand as to who advises President Trump.
“The team that is advising him is Wall Street billionaires, the Treasury Secretary and, Commerce Secretary who want tariffs to come at a faster pace,” Fernando said.
However, he said that the global uncertainty and apprehension stemming from the trade tariffs will deter investor confidence which is the worst thing Sri Lanka could imagine at a critical time when the International Monetary Fund has downgraded global growth to 2.8 percent this year.
The only silver line in the gloomy skies of world trade is that US and Chinese officials are set to start talks this week to try to deescalate a trade war between the world’s two biggest economies.
Chinese Vice Premier He Lifeng attended the talks in Switzerland from May 9 to 12.
US Treasury Secretary Scott Bessent and US Trade Representative (USTR) Jamieson Greer represented Washington at the meeting, their offices announced.
Since returning to the White House, President Donald Trump has imposed new import taxes on Chinese goods of up to 145%. Beijing has hit back with levies on some goods from the US up to 125%.
