Vietnam’s GDP could overtake Singapore’s by 2029

Vietnam’s economic trajectory continues to impress, with the country’s GDP forecast to reach $450 billion in 2024, securing the 34th spot globally, according to a report by the UK-based Centre for Economics and Business Research (CEBR).

The nation’s robust annual growth rate of 5.8% over the next five years is projected to push its GDP beyond Singapore’s, hitting $676 billion by 2029.

By 2039, Vietnam is expected to solidify its position as a key player in the global economy, with its GDP anticipated to soar to $1.41 trillion.

This would rank Vietnam as the world’s 25th-largest economy and Southeast Asia’s third-largest, trailing only Indonesia and the Philippines. This growth highlights Vietnam’s resilience and adaptability in the face of global economic challenges.

The CEBR notes that Vietnam’s economic expansion is likely to outpace many of its regional counterparts, including Thailand, Malaysia, and Singapore. While global GDP is projected to double from $110 trillion in 2024 to $221 trillion by 2039, Vietnam’s growth is expected to be among the strongest in ASEAN.

Vietnam is on track to cross the upper-middle-income threshold in 2024, with a projected GDP per capita of $4,469. By 2025, this figure is expected to rise to $4,783, officially classifying the nation as an upper-middle-income country.

While Vietnam’s per capita GDP remains lower than that of Singapore, Malaysia, and Thailand, it is set to surpass Indonesia and the Philippines by 2026, climbing to fourth place among ASEAN-6 nations with an estimated per capita GDP of $6,140, according to the International Monetary Fund.

To maintain its upward momentum and reduce income disparities with neighbouring countries, Vietnam is urged to prioritize improving labour productivity, investing in education, and advancing technological capabilities.

Analysts say these measures are essential for ensuring sustainable growth and solidifying Vietnam’s position as a regional economic leader.