The European Chamber of Commerce in Vietnam (Eurocham) believes that in the next 30 years, Vietnam has the opportunity to become the 20th largest economy in the world and the 10th in Asia.
Vietnam is a country with a strong economy, a growing middle class and a favorable investment environment. Specifically, according to the World Bank, Vietnam’s middle class currently accounts for 13% of the country’s population and is expected to increase to 26% by 2026. Vietnam is among the top 5 countries in the region, including Thailand, Malaysia, Indonesia and the Philippines on the rise of the middle class.
At the Conference “Administrative regulation reform: The key to successful implementation of EVFTA” 2020, the President of Eurocham once said that the Vietnamese Government has made efforts to reform the business and investment environment in the country.
As a result, Vietnam has become a more attractive market in the eyes of investors. With low business costs, a strongly growing economy, a growing middle class and a favorable environment, Vietnam has become an attractive destination for FDI.
Therefore, Eurocham said, in the next few decades, Vietnam is expected to be one of the fastest-growing economies in the world, with an average annual GDP growth rate estimated at 5% through 2050.
Moreover, domestic demand is high, unemployment is low, and exports are strong thanks to FDI inflows. According to Eurocham, all those factors will make Vietnam become the 20th largest economy in the world and 10th in Asia by 2050.
To achieve this goal, Vietnam needs to continue to promote the improvement of the business environment. Currently, Vietnam ranks 70 out of 190 countries worldwide in the World Bank’s Ease of Doing Business 2020. In the ASEAN region, Vietnam ranks 5th, but the gap is still quite far from Thailand, Malaysia.
The goal of becoming Asia’s new economic tiger is also one of the focuses of the Government’s attention.
The government has identified one of the levers to help Vietnam achieve this important goal: green energy development and sustainable development; productivity improvement in the context of industrialization; improve the business investment environment through reform of risk management, especially in credit, trade and investment.
@ Cafef
Related
Source: Vietnam Insider