On October 5, the spglobal.com website of the US-based global market analysis firm S&P posted an article giving indications that in the next 5 years, Vietnam will become one of the fastest growing emerging markets in the Asia region.
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Illustration photo: VNA
According to S&P, in the medium term, Vietnam's economy continues to record a number of key growth drivers. Accordingly, Vietnam will continue to benefit from relatively low manufacturing labor costs.
Vietnam has a relatively abundant and well-educated workforce compared to many other countries in the Southeast Asian region, making Vietnam an attractive manufacturing hub for multinational corporations.
In addition, capital expenditure is expected to increase as multinational corporations continue to invest heavily in Vietnam and Vietnam also increases spending on domestic infrastructure. Infrastructure investment is expected to increase as the economy continues to grow strongly in the coming decade.
S&P assesses that multinational corporations are tending to diversify their production supply chains to minimize risks due to supply disruptions in the current geopolitical context.
Vietnam is one of the favorite destinations for Korean and Japanese businesses choosing to shift production to the Association of Southeast Asian Nations (ASEAN).
According to S&P, in the medium term, Vietnam has many positive drivers, creating favorable conditions and supporting economic growth. This is expected to boost Vietnam's Gross Domestic Product (GDP) and GDP per capita growth. From 2024-2026, Vietnam's economy has the prospect of rapid growth.
With high economic growth forecast in the next decade, Vietnam's total GDP is expected to increase from 410 billion USD in 2022 to 500 billion USD in 2025 and to 750 billion USD in 2030. This means that Vietnam's GDP per capita will grow very rapidly, from 4,150 USD/year in 2022 to 5,000 USD/year in 2025 and 7,300 USD/year in 2030, which will help expand the scale of Vietnam's domestic consumer market.
S&P believes that Vietnam's role as a low-cost manufacturing hub will also continue to be enhanced as current key industries grow further, especially textiles and electronics. New industries such as automobiles and petrochemicals are also on the rise./.
Thu Hang
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