Vietnam joins several other Asian nations with expected economic growth rates of around 7% for the next decade according to a recent Standard Chartered report.
This week, Bloomberg reported that Vietnam's per-capita income is expected to rise from around US$2,500 in 2018 to US$10,400 by 2030. Increased domestic production, favorable global trade deals and increased economic ties with regional neighbors are cited as factors contributing to the impressive growth, as well as a young, educated labor force and the confidence of foreign investors.
The report projects that Asia will own the coming 2020s with five of the seven nations expected to achieve 7% growth coming from the region. Vietnam is joined by Bangladesh, India, the Philippines and Myanmar. Such growth would equate to a doubling of a nation's Gross Domestic Product (GDP) every 10 years.
The numbers represent good news for the region which will account for one-fifth of Earth's population by 2030. Madhur Jha, Standard Chartered’s India-based head of thematic research, and Global Chief Economist David MannFaster explained: "Growth not only helps to lift people more quickly out of absolute poverty, but is also usually accompanied by better health and education, as well as a wider range of — and better access to — goods and services ... Higher incomes resulting from faster growth also usually reduce socio-political instability and make it easier to introduce structural reforms, creating a virtuous cycle.”
China is noticeably absent from the 7% club despite having been a member for the past four decades. The slowdown to an estimated 5.5% growth rate over the next ten years is the result of a general economic cooling and emergence of higher per-capita incomes that restrict massive leaps in percentage growth.
