Over the medium-term economic outlook, a large number of positive growth drivers are creating favourable tailwinds and will continue to underpin the rapid growth of Vietnam's economy. (Illustrative photo: VNA)Accordingly, it noted that Vietnam will continue to benefitfrom its relatively lower manufacturing wage costs. The country has arelatively large, well-educated labour force compared to many other regionalcompetitors in Southeast Asia, making it an attractive hub for manufacturingproduction by multinationals.
In addition, rapid growth in capital expenditure isexpected, reflecting continued strong foreign direct investment by foreignmultinationals as well as domestic infrastructure spending. Strong investmentis expected in infrastructure sector over the next decade.
The article assessed that many multinationals have beendiversifying their manufacturing supply chains during the past decade to reducevulnerability to supply disruptions and geopolitical events. Vietnam has beenone of the preferred destinations for Republic of Korea and Japanese firmschoosing to shift their production to the ASEAN region.
In conclusion, the author wrote over the medium-termeconomic outlook, a large number of positive growth drivers are creatingfavourable tailwinds and will continue to underpin the rapid growth ofVietnam's economy. This is expected to drive strong growth in the country’stotal GDP as well as per capita GDP. The economic outlook from 2024 to 2026 isfor rapid economic expansion.
With strong economic expansion projected over the nextdecade, Vietnam's total GDP is forecast to increase from 410 billion USD in2022 to 500 billion USD by 2025, rising to 750 billion USD by 2030. Thistranslates to very rapid growth in Vietnam's per capita GDP, from 4,150 USD peryear in 2022 to 5,000 USD per year by 2025 and 7,300 USD by 2030, resulting insubstantial expansion in the size of its domestic consumer market./.
VNA
