Average income of the Vietnamese remain low compared with Asean
Average income of the Vietnamese remains very low compared with Asean and China's, Vietnam Business Forum Magazine reported, citing the conclusion of the state-level scientific project made by the National Economic University according to the requirement of National Assembly's Economic Committee.
Data of International Monetary Fund (IMF) on Vietnam's and other regional countries' income in 2010 indicated that in line with forex rate, income per capita of Vietnam increased from $114 in 1991 to $1,061 per person a year. Meanwhile, China's jumped from $353 to $3,915. Therefore, Vietnam's GDP per person was equal to 32 percent of China's in 1991 and 27 percent in 2010.
On the other hand, based on Purchasing Power Parity (PPP), GDP per person of Vietnam rose from $706 in 1991 to $2,948 in 2010. In the reporting period, China's figure leaped from $888 to $6,786. Hence, Vietnam's GDP per person was equal to 80 percent of China's in 1991 and 43 percent in 2010
In addition, though the income gap between Vietnamese people compared with other Asean people was narrowed in the period of 1991 to 2010, but the gap remains high at this time. PPP-based income per capita of Vietnam was less than one half of Philippines' or Indonesia's, one fifth of Thailand's, one tenth of Malaysia in 1991. The ratio surpassed three forth, one third and one fifth respectively after almost 20 years.
Even, the life quality of the Vietnamese has been going down and might be placed far behind many countries. According to World Bank's Vietnam Development report 2009, Vietnam's income per capita went back 51 years compared with Indonesia, 95 years against Thailand and 158 years against Singapore.
These are really the worrying figures when the country's inflation is rising continuously and people have to suffer other expenses for corruption, low quality of administrative and public service system.
Vietnam's low income is not new but factually there are a lot of difficulties in the whole country. But, many inadequacies also have been shown that there is a big difference between Vietnam's price, income and life quality and the world's.
Every petrol price increase as attributed to a rise in the global product price because Vietnam imported almost 100 percent of petrol products. And the relation seems to be reduced by one third as Dung Quat oil refinery was put into operation but apparently Vietnam has not escaped from the domination of world prices yet.
Regarding electricity industry, in every price rise, authorities and the Electricity of Vietnam publicised the losses because the country's electricity price was lower than the global level.
Therefore, the average income of the Vietnamese went behind the regional countries while prices of key commodities such as petrol, electricity, and other services always are estimated based on world price. However, the basis of income, inflation and suffering strength of the people seemed not to be calculated properly.
Besides, new proposals on collecting road fee and vehicle circulation or Personal Income Tax made people confused and worried.
Vietbiz24.com - April 5, 2012