Jun 06, 2019 / 15:49

Vietnam sets GDP growth target at 5 – 6% in next decade

The Hanoitimes - The target was revealed in the prime minister’s Decision No.681 mapping out the roadmap towards the accomplishment of Vietnam’s sustainable development goals by 2030.

Vietnam’s GDP growth target is set to maintain at an average of 5 – 6% in the 2020 – 2030 period, while the GDP per capita would increase from 4-4.45% per year. 
 
Illustrative photo.
Illustrative photo.
The target was revealed in the prime minister’s Decision No.681 mapping out the roadmap towards the accomplishment of Vietnam’s 17 sustainable development goals by 2030, including poverty eradication, ensuring national food safety, improving nutrition and promoting sustainable agricultural development, among others. 

Following the decision, Vietnam targets to basically solve the hunger issue by 2020 and puts an end to famine by 2025. 

To reach the target of increasing productivity and average income in the agricultural sector by 1.5-fold by 2030, the average income per capita in rural areas is expected to reach VND43 million (US$1,831) by 2020, VND60 million (US$2,555) by 2025 and VND90 million (US$3,832) by 2030. 

Meanwhile, the productivity growth rate is set at an average of 5% per year. 

A research note released on May 12, Madhur Jha, Standard Chartered’s India-based Head of Thematic Research and Global Chief Economist David Mann, predicted Vietnam to join an exclusive list of economies expected to sustain growth rate of around 7% during 2020s, translating into a 4-fold increase in the country’s per-capita income from US$2,500 in 2018 to US$10,400 by 2030.

HSBC expected Vietnam, along with Bangladesh, the Philippines, Malaysia and Pakistan, to be the five fastest-growing economies out of 75 developed, emerging and frontier economies included in its projections by 2030.

By 2030, Vietnam's GDP is projected to reach around US$500 billion from over US$200 billion in 2018, while trade continues to remain a vital part of the economy, accounting for 184.7% of GDP.

The country posted GDP growth of 7.08% in 2018, the highest in 10 years, however, due to unfavorable global economic conditions this year, international organizations including the World Bank, the Asian Development Bank (ADB), forecast the country’s economy to grow 6.6 – 6.8% in 2019.