Vietnam’s economy set to overtake Singapore’s in size

Vietnam’s Economy Set To Overtake Singapore’s In Size
Tran Thi Ly Bridge in Da Nang, Vietnam
© Arno Maierbrugger

Vietnam’s economy could be bigger than Singapore’s by 2029 in terms of gross domestic product (GDP), Bloomberg News cited Singapore-based DBS Bank.

The bank said that Vietnam had the potential to grow at a pace of about six to 6.5 per cent over the next decade, citing strong foreign investment inflow and productivity growth in the coming years.

“If it can sustain that pace of growth, the Vietnam economy will be bigger than the size of the Singapore economy in ten years’ time,” Singapore-based economist Irvin Seah said in a research note released on May 28.

Vietnam’s government expects GDP to expand at least 6.8 per cent this year. Future growth will be boosted as the nation’s favourable demographic dynamic, productive labour force, much-improved infrastructure and stable politics encourage international inflows, Seah said.

“Global investors have been lining up to be a part of the Vietnam narrative,” he said, adding that “strong foreign direct investment from China and Hong Kong in the first four months of this year may well mark the beginning of a new trend.”

Vietnam is also planning to implement strategies to increase the share of its digital economy. Digital transition is expected to add about 1.1 per cent of GDP growth each year for Vietnam by 2045, according to Lucy Cameron, lead author of the report “Vietnam’s Future Digital Economy Towards 2030 and 2045.”

A boom in digital hardware and software exports has occurred and Vietnam’s young population is rapidly taking up new mobile internet services, while the government is also implementing “Industry 4.0” policies to modernise major existing industries and develop new ones, the report noted.

Nguyen Van Bình, chairman of Vietnam’s Central Economic Commission, said mastering the digital economy created an opportunity for Vietnam to maintain rapid and sustainable growth through the next phase of development. “Strong leadership and institutions will be key in Vietnam’s development across all economic sectors, including the private sector,” he said, adding that “digital transformation resulting from this strong leadership will unblock bottlenecks to promote further economic development.”

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Tran Thi Ly Bridge in Da Nang, Vietnam © Arno Maierbrugger Vietnam’s economy could be bigger than Singapore’s by 2029 in terms of gross domestic product (GDP), Bloomberg News cited Singapore-based DBS Bank. The bank said that Vietnam had the potential to grow at a pace of about six to 6.5 per cent over the next decade, citing strong foreign investment inflow and productivity growth in the coming years. “If it can sustain that pace of growth, the Vietnam economy will be bigger than the size of the Singapore economy in ten years’ time,” Singapore-based economist Irvin Seah said in...

Vietnam’s Economy Set To Overtake Singapore’s In Size
Tran Thi Ly Bridge in Da Nang, Vietnam
© Arno Maierbrugger

Vietnam’s economy could be bigger than Singapore’s by 2029 in terms of gross domestic product (GDP), Bloomberg News cited Singapore-based DBS Bank.

The bank said that Vietnam had the potential to grow at a pace of about six to 6.5 per cent over the next decade, citing strong foreign investment inflow and productivity growth in the coming years.

“If it can sustain that pace of growth, the Vietnam economy will be bigger than the size of the Singapore economy in ten years’ time,” Singapore-based economist Irvin Seah said in a research note released on May 28.

Vietnam’s government expects GDP to expand at least 6.8 per cent this year. Future growth will be boosted as the nation’s favourable demographic dynamic, productive labour force, much-improved infrastructure and stable politics encourage international inflows, Seah said.

“Global investors have been lining up to be a part of the Vietnam narrative,” he said, adding that “strong foreign direct investment from China and Hong Kong in the first four months of this year may well mark the beginning of a new trend.”

Vietnam is also planning to implement strategies to increase the share of its digital economy. Digital transition is expected to add about 1.1 per cent of GDP growth each year for Vietnam by 2045, according to Lucy Cameron, lead author of the report “Vietnam’s Future Digital Economy Towards 2030 and 2045.”

A boom in digital hardware and software exports has occurred and Vietnam’s young population is rapidly taking up new mobile internet services, while the government is also implementing “Industry 4.0” policies to modernise major existing industries and develop new ones, the report noted.

Nguyen Van Bình, chairman of Vietnam’s Central Economic Commission, said mastering the digital economy created an opportunity for Vietnam to maintain rapid and sustainable growth through the next phase of development. “Strong leadership and institutions will be key in Vietnam’s development across all economic sectors, including the private sector,” he said, adding that “digital transformation resulting from this strong leadership will unblock bottlenecks to promote further economic development.”

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

NO COMMENTS

Leave a Reply