VINACHEM

Viet Nam surpassed the Philippines to rank fourth among ASEAN Member States in terms of economic size in 2024.

According to latest statistics collected by Mekong ASEAN, Viet Nam has made breakthrough in 2024, with its GDP estimated at US$476.3 billion.

Last year, Viet Nam took the lead among the ASEAN-6 in term of GDP growth rate, with 7.09 percent.

The country ranked fifth in the ASEAN-6 in terms of GDP per capita, with US$4,711.

The 15th National Assembly on February 19 passed a resolution in which the legislative body agreed with the Government's proposal to raise 2025 GDP growth target to 8 percent.

The country's GDP scale this year is expected to exceed US$500 billion and the GDP per capita is projected to surpass US$5,000.

Based on projections by the International Monetary Fund (IMF), Seasia Stats forecasted that Viet Nam's GDP will reach US$506 billion this year, ranking 33rd globally.

Seasia Stats highlights Viet Nam's impressive economic growth, adding that Viet Nam's economy is rapidly expanding, thanks to its manufacturing boom and foreign investments.

Meanwhile, the UK-based Centre for Economics and Business Research noted that with an average annual growth rate of 5.8 percent over the next five years, Viet Nam's GDP is expected to surpass Singapore's, reaching US$676 billion by 2029.

By 2039, Viet Nam's GDP could rise to US$1.41 trillion, ranking 25th worldwide.

According to a new report released by Oxford Economics, the world's foremost independent economic advisory firm, Viet Nam's economy will be the standout among the ASEAN-6, growing at a faster pace relative to its peers during the next few years.

The report noted that the nation's GDP growth will reach 6.5 percent in 2025, driven by a strong manufacturing sector and a rapid recovery in domestic demand. In which, manufacturing fundamentals remain strong and supported by structural tailwinds.

A key source of growth for Viet Nam next year will be its manufacturing exports. Viet Nam is a known assembly, packaging, and testing (APT) hub, the next stage of the chip-making process post fabrication. Intel's largest APT facility is in Viet Nam, and Amkor Technology's US$1.6 billion chip plant in Bac Ninh province is set to come on line in 2025.

Other large exporting sectors are machinery and electrical appliances, textiles, and agriculture. A boost should come from the front-loading of export orders next year in anticipation of tariffs, which may be sufficient to offset soft electronics demand in the near term.

According to Oxford Economics, growth in FDI inflows will continue to be maintained, although at a slower pace. It expects investment growth in 2025 to reach 7.2 percent, higher than the 6.9 percent forecast for this year./.   – Source: VGP