World Bank: Vietnam a trusted economic model as Asian economies are failing to innovate in line with growth


MOST East Asian countries "innovate less than would be expected given their per capita income levels" and could therefore struggle to sustain recent economic growth, according to the World Bank.

Countries in the region are dogged by "insufficient staff skills and limited financing options," the bank said in a report published late Tuesday, with firms often seeming wary of investing in innovation because "policies and institutions are often not aligned with firms' capabilities and needs."

Lower-than-expected innovation could lead to questions about "whether the region's past model of development can continue to deliver rapid growth and poverty reduction," the bank said.

Many Asian countries saw rapid growth at different stages since World War II, often due at first to low-wage manufacturing prowess.

That trusted model is now seen in high-growth Vietnam, one of the few economies to expand last year as governments imposed lockdowns in response to the coronavirus pandemic.

Countries that decades ago were low-wage factory hubs, such as South Korea and Singapore, have long since become advanced economies with incomes matching Europe and North America.

Most of Asia's economies recovered quickly from the 2008-9 financial crisis and have fared better in the face of the pandemic than countries in Europe and North America.

However countries such as Malaysia and Thailand are struggling to leap from "middle income" to "developed" or "wealthy."

Though Malaysian labour and factory productivity are the highest in "developing East Asia," labour productivity measured only 42 per cent and factory productivity 62 per cent of levels seen in the US, the global benchmark. - dpa
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
   

Next In Aseanplus News

Daily infections hit record 1,300
Cop charged with robbery
Women heal scars with tattoos
Mover dies after falling seven storeys
Water in large dams drop to worrying levels
US authorities deports wine fraud con man
Ex-MOH staff charged with leaking Covid-19 cases 22 times
Protesters paint streets red
Govt dismisses proposal to put Vientiane under lockdown
People can now choose which Covid-19 jab to take

Stories You'll Enjoy


Vouchers