The economy of Vietnam could surge and have annual growth rate for at least 6.5% per year in a span of 10 years and possibly exceed Singapore in size by 2029 as per Singapore-based DBS Bank on a report released by Nikkei Asian Review. There are lots of challenges ahead of the rising star in the Southeast Asian region.
Senior economist of DBS bank Irvin Seah, stressed that Vietnam’s gross domestic product (GDP) will exceed that of Singapore by 2029. Also, according to other economists from Maybank stating that it will only take five to six years to overtake Singapore if the growth remains constant.
Vietnam’s economy currently stands at $224billion while Singapore has a massive $324billion. Indonesia has the strongest economy in Southeast Asia values at $1 trillion followed by Thailand at $456billion, then Singapore, Malaysia at $317billion, Philippines at $314billion and Vietnam according to ASEAN Statistical Yearbook 2018.
Improvements in productivity and infrastructure and the current trade ware between the US and China have made Vietnam the top destination for different direct foreign investments. Vietnam’s investment now focused in areas like economic zones, industrial parks and high technology parks which will attract more global investments.
If Vietnam can take advantage and sustain its economic growth, in a decade Vietnam can exceed Singapore as the Vietnam economy will be bigger than the size of the Singaporean economy.
The domestic product of Vietnam grew 6.8% in the first quarter of 2019, exports also goes up as companies from China moves to different Southeast Asian nations to avoid a hefty tariffs by the US. Vietnam has arisen as one of the top electronics manufactures in the region.
Vietnam now currently drawing attraction from different investments specially in the nation's manufacturing industry and manufacturing where consumer giants Samsung Electronics, Panasonic, Intel, LG and Microsoft have expanded their businesses inside the country.
Other global investors have been lining up to enter and do business inside Vietnam. Still, there more companies leaving China to dodge the hefty tariffs given by the US to China made products.
Vietnam is in the position to be favorable and benefits more in the current Sino-American trade war as its government double its effort to encourage investments and improve their infrastructure. Vietnam’s GDP just grew to 7.8% which is recorded as the highest in almost 10 years according to its General Statistics Office.
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