The world is likely to witness momentous shifts in economic order over the next few decades, with Vietnam poised to make the biggest improvement of all, according to a new report by the consulting firm PwC.
Vietnam could jump from its current 32nd position as of 2018 to 29th in 2030 and to 20th in 2050, when its gross domestic product (PPP or purchasing power parity based) is expected to expand six folds from now to $3,176 billion, which will be equivalent to 60% of the United Kingdom’s PPP in 2050. (PPP is the estimation of GDP adjusted for price level differences across countries).
The Philippines is expected to see the second best improvement, followed by Nigeria.
But Vietnam will not be the only success story from the Southeast Asia. The report projects a remarkable rise of Indonesia to the world’s fourth biggest economy, only after China, India and the U.S. It is currently the eighth biggest economy.
The general director of PwC subsidiary in Vietnam said in a previous report in 2015 that Vietnam was only expected to reach 22nd in 2050, but in this year report it is now forecast to crack the top 20. If Vietnam wants to succeed in this new environment of the Industry 4.0, it needs to build growth on economic and politic reforms, as well as improve its plodding education system. Vietnam’s economy currently depends on exports and given the global economic slowdown, it needs to diversify what it can offer and to create opportunities from more economic sectors, PwC Vietnam said.
Last year, Vietnam’s economy ends with a 6.81% GDP growth rate, which is the highest over a decade. CNBC reported that Vietnam will expect an economic growth reaching as high as 6.83% in 2018.
References: PwC, CNBC, VnExpress, Forbes, SciX