At that time, Vietnam will rank second in Southeast Asia, only after Indonesia. Meanwhile, Thailand will be ranked third in Southeast Asia and 22nd in the world.
Underpinning the robust GDP growth in 2021 has been a resilient labour market. In 2021, the unemployment rate fell by 0.6 percentage points to 2.7 per cent.
Government debt as a share of GDP reached 47.9 per cent in 2021, compared to 46.3 per cent the previous year. This increase is attributable to the impact of the pandemic on government spending and tax receipts, the report by London-based CEBR said.
Vietnam aims to attain a high-income status by 2045. For this to happen, it must grow at an annual average rate of approximately 5 per cent per capita, the report noted.
Vietnam’s ongoing five-year plan currently estimates growth to average 6.5 per cent annually for the coming decade, keeping it on track with its aspirations.
The country faces key challenges on its path to becoming a high-income country. With global trade declining and its population ageing, it needs to improve its policy implementation performance drastically, particularly in sectors that will be severely affected by automation and climate change, according to the report.
ALCHEMPro News Desk (DS)
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