Vietnam's Strong COVID-19 Resilience... Rises to 19th in Global Economy by 2035

UK Think Tank CEBR Forecast
Rapid Growth from 37th Largest Economy
GDP Average Growth Rate Reaches 6-7%
World Bank Also Maintains Stable 6.5%

[Asia Economy Hanoi Correspondent Jo Ara] Vietnam, which received attention last year for effectively responding to the novel coronavirus disease (COVID-19) crisis, is projected to experience rapid growth and rise to the 19th largest economy in the world by 2035.

According to the 'World Economic League Table 2021' recently published by the UK think tank Centre for Economics and Business Research (CEBR), Vietnam's economic size is expected to leap from 37th in the world this year to 19th by 2035, demonstrating remarkable growth over 15 years.

Vietnam's gross domestic product (GDP) growth rate remained at 2.91% last year due to the impact of the COVID-19 crisis, but it is expected to reach an average growth rate of 7% from this year through 2025. CEBR predicted that the regional economy will show an average annual growth of 6.6% over the next decade.

The World Bank also recently forecasted that Vietnam's economy will grow by about 6.8% this year and maintain a stable growth rate of around 6.5% thereafter. This prediction is based on the assumption that the COVID-19 crisis will be gradually controlled through the effective introduction of vaccines.

The World Bank estimated that Vietnam grew by about 3% last year, while the global economy experienced at least a 4% contraction amid the largest global crisis in recent decades. Additionally, Vietnam not only recorded its largest-ever trade surplus but also saw continuous increases in foreign investment, attracting growing international attention.

According to CEBR's forecast, Vietnam's economy is expected to become the second largest in Southeast Asia after Indonesia. Indonesia's economic size, ranked 24th in 2005, rose to 15th last year. Indonesia is projected to reach 8th place globally by 2035. CEBR also predicted that China will surpass the United States to become the world's largest economy by 2028, five years earlier than previously expected.

Meanwhile, according to Brand Finance, an independent brand valuation and strategy consulting firm headquartered in London, Vietnam's national brand value increased by 29% last year to $319 billion. Consequently, Vietnam's brand value ranking rose nine places from 42nd in 2019 to 33rd last year. Vietnam, which recorded a low COVID-19 death rate last year, is gaining attention as the best location for manufacturing in Southeast Asia. Despite the global challenges posed by COVID-19 last year, Vietnam achieved positive growth, turning the crisis into an opportunity. The United States was the most valuable brand globally at $23.7 trillion, followed by China and Japan.

Experts from the Asian Development Bank (ADB) view Vietnam as showing stronger resilience than most similar countries and maintain a positive medium- to long-term economic outlook. In the ADB's annual flagship economic publication, Asia Development Outlook (ADO) 2020 Update, it was stated that Vietnam will benefit from continued production shifts from China to Vietnam and the implementation of the European Union (EU) - Vietnam Free Trade Agreement (FTA).

This content was produced with the assistance of AI translation services.