Vietnam Projected to Become World’s 20th Largest Economy by 2050: PwC

In terms of growth, Vietnam, India and Bangladesh could be the fastest growing economies over the period to 2050, averaging growth of around 5% per year.

         A kite bearing the Vietnamese national flag at a festival in Binh Thuan. Photo: foody.vn

Vietnam is set to become the 20th largest economy by 2050 in terms of purchasing power parity (PPP), up from the 32th position in 2016 and the 29th in 2030, PricewaterhouseCoopers has said in a report.

Its gross domestic product (GDP) will grow to $3,176 billion by 2050 in PPP terms, compared to $595 billion last year, according to the report.

Two years ago, PwC forecast Vietnam to be the 22nd largest economy in 2050. This year’s updated projections have moved Vietnam up to the 20th rank.

In terms of growth, Vietnam could be the fastest growing economy over the period to 2050, averaging growth of around 5% per year, followed by India and Bangladesh.

PwC economists project global economic growth to average around 3.5% per annum over the years to 2020, slowing down to around 2.7% in the 2020s, 2.5% in the 2030s, and 2.4% in the 2040s.

This will occur as many advanced economies experience a marked decline in their working-age populations. At the same time, emerging market growth rates will moderate as these economies mature and the scope for rapid catch-up growth declines.

In order for Vietnam to navigate the global changing playing field, “growth needs to be supported by sustained economic reforms, strengthened institutions and mass education to ensure that the work force contribute productively to long-term economic growth,” said Dinh Thi Quynh Van, general director of PwC Vietnam.

“For an export-driven economy like Vietnam, the falling global trade growth is intensifying the need to create a more diversified economy which can produce opportunities in a broad variety of industries.

The Vietnamese policymakers’ determination to build a ‘constructive government’ is a good effort towards that goal, for it would help speed up institutional reforms that are favorable to businesses,” Van added.

Tuan Minh / BizLIVE