We can think about every benefit that highly globalized countries can get. Economic might will be the topmost benefit of a globalized country, but with the unexpected whims of the global economy, the ‘globalized’ nature of these countries will work against them -unmercifully.
We’ve seen it with the recessions like the Asian Financial Crisis of 1998, Tech Bubble of the early 2000s, and the Global Financial Crisis of 2008. See how even the giants of the global economy were not able to escape these crises?
But there’s really an irony in every situation, and these economic disasters are not an exemption. When these flood-like recessions struck many countries, one country was able to escape.
What country can pull off this unbelievable ‘economic stunt’?
If you want to find out, then stop looking at the globe’s economic titans.
You might be (or surely) surprised to know that the answer is … Vietnam.
Yes, that small Southeast Asian country. Vietnam is a top worth-visiting place due to its ancient history, diverse culture and quintessential natural landscapes. But this country also has something to brag about economically.
Vietnam – A Frontier Market
You will find many analyses and theories on how Vietnam did it, but let us look first at how this country differs from all those countries that were washed away by those economic downturns. Vietnam is a frontier market, meaning, their progress depends on their internal factors rather than the movements of the global economy. In general, frontier markets are less correlated with the shifting nature of the global economy.
Because Vietnam is not fully dependent on the global economy’s trends, it does not benefit from these trends’ gains either. However, that has helped Vietnam to withstand the above-mentioned recessions. They didn’t suffer when everything was shooting everyone’s economy down.
A miracle? No, just the right nature.
Also Read: 3 Asian Currencies to Look Out For
