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Vietnam's Economy Could Soon Be Bigger Than Singapore's

Bloomberg logoBloomberg 28/5/2019 Nguyen Dieu Tu Uyen
An employees inspects clothing at the Pan-Pacific Co. Viet Pacific Clothing (VPC) factory in Vo Cuong, Bac Ninh province, Vietnam, on Friday, March 1, 2019. Pan Pacific manufactures and exports feather-down products, apparel, bedding goods, and needlework products. © Bloomberg An employees inspects clothing at the Pan-Pacific Co. Viet Pacific Clothing (VPC) factory in Vo Cuong, Bac Ninh province, Vietnam, on Friday, March 1, 2019. Pan Pacific manufactures and exports feather-down products, apparel, bedding goods, and needlework products.

(Bloomberg) -- Vietnam’s economy could be bigger than Singapore’s by 2029, says DBS Bank Ltd.

The Southeast Asian nation has the potential to grow at a pace of about 6%-6.5% over the next decade, DBS forecasts, citing strong foreign investment inflow and productivity growth in the coming years.

“If it can sustain that pace of growth, the Vietnam economy will be bigger than the size of the Singapore economy in ten years’ time,” Singapore-based economist Irvin Seah said in a research note Tuesday.

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Vietnam’s government expects gross domestic product to expand at least 6.8% this year. Future growth will be boosted as the nation’s favorable demographic dynamic, productive labor force, much-improved infrastructure and stable politics encourage international inflows, said Seah.

a group of people on a boat in the water: A tourist takes a selfie photograph as a man looks at his smartphone along the Thu Bon River in the old town of Hoi An, Quảng Nam Province, Vietnam, on Friday, April 18, 2018. With a fast-growing economy and a young population, Vietnam offers an attractive market for retailers. Its economy expanded 7.4 percent in the first quarter from the same period a year earlier, and a third of its population is aged 15 to 34. © Bloomberg A tourist takes a selfie photograph as a man looks at his smartphone along the Thu Bon River in the old town of Hoi An, Quảng Nam Province, Vietnam, on Friday, April 18, 2018. With a fast-growing economy and a young population, Vietnam offers an attractive market for retailers. Its economy expanded 7.4 percent in the first quarter from the same period a year earlier, and a third of its population is aged 15 to 34.

“Global investors have been lining up to be a part of the Vietnam narrative,” he said. “Strong FDI from China and Hong Kong in the first four months of this year may well mark the beginning of a new trend.”

To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi at uyen1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke, John Boudreau

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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