SCUTTLEBUTT

Vietnam not Phl, next Asian rockstar

A combination of state reforms and a population of determined businessmen is driving the economy of Vietnam to surpass the Philippines.

Thus, the Philippines is again falling behind another rival neighbor, a reprise of its lost economic battles with Thailand and Indonesia, both of which are now in the upper-middle-income level, based on a recent World Bank reckoning.

The difference, it turns out, is a long-term program called Doi Moi Reforms, which started in 1986 and sparked the economic transformation after the disastrous effects of the Vietnam war.

The program transitioned the country from a centrally planned economy to a socialist-oriented market economy.

The reforms opened Vietnam to global trade, reduced trade barriers, and encouraged foreign direct investment (FDI).

By joining multilateral agreements like the Association of Southeast Asian Nations (ASEAN) in 1995, the US-Vietnam Bilateral Trade Agreement in 2000, and the World Trade Organization in 2007, Vietnam integrated deeply into global value chains, boosting an export-led growth.

It has five million household firms that authorities estimate are operating informally, including many street vendors who don’t pay taxes and aren’t officially registered as businesses.

Its Resolution 68 outlines the principles of plans by the top leadership of Vietnam’s Communist Party to integrate micro business operations into the financial system by 2045.

An economist noted that the Philippines and Vietnam share similar demographic attributes, including low labor costs, a young workforce, and pro-business policies, such as special economic zones and tax incentives.

Between 2021 and 2023, ASEAN countries, including Vietnam, received an average of $236 billion in annual FDI inflows. Companies like Samsung and Intel have invested heavily, with Vietnam’s electronics exports reaching $11.5 billion monthly.

The economist noted that Vietnam’s one-party system ensures policy continuity and political stability, which in turn attracts investors seeking predictability. Decentralized tax and investment systems empower local authorities to facilitate business operations.

Meanwhile, the Philippines scores poorly on the World Bank’s stability index, with issues such as corruption, political dynasties, and weak institutions hindering accountability and the implementation of reform. These factors deter long-term investment and economic planning.

Vietnam’s stable governance fosters investor confidence, while the Philippines’ institutional weaknesses create uncertainty, slowing progress, the expert indicated.

AI ain’t cool

Lately, the country’s tycoons, including those who are known recluses, have been hogging social media giving supposed get rich quick tips. It turns out these are deepfakes or illegally AI-generated clones of the business giants.

The Securities and Exchange Commission warned scammers have exploited deepfake technology to create manipulated videos and audio recordings depicting, among others, JG Summit president Lance Gokongwei.

Gokongwei and the other bigwigs appear to be endorsing investment schemes involving cryptocurrency, forex, and other digital assets. These deceptive videos have been circulating on social media platforms, aiming to mislead individuals into investing in non-existent or illicit ventures.

In a manipulated video, Gokongwei is talking the public into investing in an electronic platform registered in Nicosia, Cyprus.

Instructions are given to prospective customers to provide their credit card numbers and a one-time password (OTP) that was sent to their mobile phone. Victims would consequently lose contact with the online agent when they attempt to withdraw funds from their accounts.

The billionaire clones, it looks like, are trying to make others as rich as their authentic selves.