Vietnam's economy has grown impressively for decades, GDP will reach 7% in 2024

Recently, HSBC Bank in Vietnam affirmed that Vietnam has outstanding potential, especially when promoting digital transformation and developing renewable energy, aiming for sustainable growth.

Vietnam has achieved many impressive economic successes in recent decades. (Source: Shutterstock)

Despite the challenging global economic climate, HSBC still forecasts that Vietnam's economy will grow by 7% in 2024, becoming the fastest-growing economy in ASEAN and generating a new Gross Domestic Product (GDP) comparable to that of the Netherlands.

Tim Evans, CEO of HSBC Vietnam, stated that Vietnam has achieved many impressive economic successes in recent decades, rising to become one of the world's top 40 economies in terms of GDP and among the top 20 in terms of trade.

These advances have boosted per capita income 43 times, from $100 at the start of the reforms to $4,300 today.

However, the world is changing rapidly with two main trends: digital transformation and climate change. This requires adaptability to ensure sustainable development.

According to Tim Evans, the rapid development of technology, especially artificial intelligence (AI), is transforming entire lives and industries.

"Covid-19 has accelerated the digital transformation process, boosting e-commerce, remote work, and other online services. Vietnam has great potential for digital consumption thanks to its young population, high internet usage rate, and thriving e-commerce ecosystem," said the CEO of HSBC Vietnam.

To fully realize this potential, Vietnam needs to continue investing in education and improving access to technology.

Furthermore, climate change presents both challenges and opportunities for Vietnam.

The Vietnamese government has issued national strategies on digital transformation and green growth. Businesses are also gradually recognizing the importance of transformation and beginning to implement response plans.

However, both digital transformation and green transformation require enormous financial resources.

According to estimates by HSBC, Vietnam needs approximately $400 billion to respond to climate change, while the cost of global digital transformation is expected to reach nearly $4 trillion by 2027.

Source: https://baoquocte.vn/kinh-te-viet-nam-tang-truong-an-tuong-keo-dai-nhieu-thap-ky-gdp-se-dat-7-trong-nam-2024-292187.html