Vietnam’s economy to overtake Singapore’s in 10 years

[Blueray]

Vietnam’s economy to overtake Singapore’s in 10 years : DBS report

 

 

SINGAPORE — Vietnam’s economy will be bigger than Singapore's in a decade if current growth conditions continue, a DBS report said.

In a report published on Tuesday (May 28), the bank's senior economist Irvin Seah attributed Vietnam’s robust economic growth in the coming years to several factors including the following:

• It will benefit from the trade dispute between the United States and China

• Economic policies focused on long-term economic stability

• Strong investment growth

Right now, Vietnam’s economy is worth US$224 billion (S$309 billion), or about 69 per cent of the size of the Singapore's economy (US$324 billion).

The report’s projections are based on Vietnam maintaining an annual growth rate of about 6 to 6.5 per cent, while Singapore continues to grow at a “matured pace” of 2.5 per cent a year.

“Simply put, the Vietnam economy will be bigger than the size of the Singapore economy in 10 years’ time. And this implies tremendous growth opportunities for companies and investors looking to get a slice of the action,” Mr Seah said in his report.

MAIN FACTORS DRIVING VIETNAM’S GROWTH

• Ongoing trade war between US and China: Vietnam stands to benefit as it is strategically plugged into the regional manufacturing supply chain. It also has extensive free-trade agreements with many countries and is geographically close to China. The report noted that foreign direct investment flows from China into Vietnam has been “significantly stronger than usual” — a possible early sign that China is diversifying its investments into regional markets.

• An electronics powerhouse: Vietnam has become the second largest exporter of electronic goods among members of the Association of South-east Asian Nations (Asean), as investment into electronics grow and high-tech companies — such as Samsung and Microsoft — establish a presence in the country

• Competitive wage costs: Vietnam’s wages are one-third of China’s, on average, and this is one of the main reasons why major electronic manufacturers are relocating to the country.

• Quality human capital: Vietnam ranks second among Asean countries in the World Bank Human Capital Index, likely a result of a high expenditure on education. It also has a relatively young population, with a median age of 30.

• Infrastructure investment: Vietnam invested 5.8 per cent of its gross domestic product (GDP) on infrastructure development, significantly more than its other Asean neighbours. This would help to support longer-term expansion of the economy, the report said.
• Economic stability and sustainability: Policymakers in Vietnam are focused on longer-term economic stability rather than growth per se. “Domestic reform, albeit tepid, has been ongoing,” the report said. It added that the long-term prospects of Vietnam’s economy are “positive”.

SHOULD SINGAPORE BE WORRIED? HERE’S WHAT ECONOMISTS SAY 

• Commenting on the report, other economists said that they were not surprised by the projections. Maybank Kim Eng's economist Chua Hak Bin said that Vietnam’s economy may even grow bigger than Singapore’s within the next five to six years, if growth conditions remain.

• CIMB's economist Song Seng Wun said that Singapore may benefit from Vietnam’s continued growth. Simply put, this would mean growing affluence in the region, he said. Singapore’s economy stands to benefit when foreigners from the region visit the country as tourists, to attend its schools or do business, for example.  

• Dr Chua and Mr Song stressed that there is no need for Singapore to be unduly worried about its economy being overtaken.
• Noting that a small country such as Singapore would naturally have a smaller economy, the economists pointed out that GDP per capita — or the economic output per person — is a more meaningful way of measuring a country’s level of development.
• Already, the economies of Singapore’s South-east Asian neighbours, Indonesia (US$1 trillion) and Thailand (US$455 billion), are far bigger than its economy.
• In terms of GDP size, the Philippines (US$313 billion) and Malaysia (US$314 billion) are also set to overtake Singapore within the next two years, based on DBS’ projections.
• The countries with the highest GDP per capita in the world include Liechtenstein (US$165,000) and Luxembourg (US$105,000).
• In comparison, the GDP per capita of its neighbours are: Malaysia — US$9,950, Thailand — US$6,600, Indonesia — USS$3,490, the Philippines — US$2,990, and Vietnam — US$2,340.
• Figures from the World Bank showed that Singapore’s GDP per capita in 2017 was US$57,714. This is one of the highest in the world, along with  Australia, Sweden and Denmark.

https://www.todayonline.com/singapore/vietnams-economy-overtake-singapores-10-years-dbs-report

just wondering if the writer has been to Vietnam before ...

 

[Nlatio]

Not surprise at all.... they are hardworking folks.... if no unforeseen things happen, they will soon become one of the dragon... prob overtaking all the Asia major economy less China and Japan... time to look at putting some investment there

[Mockngbrd]

Not surprise at all.... they are hardworking folks.... if no unforeseen things happen, they will soon become one of the dragon... prob overtaking all the Asia major economy less China and Japan... time to look at putting some investment there

 

Hardworking meh? My frens set up company say all the guys sibeh lazy one. The only ones hardworking are the char bors.

[Nlatio]

 

 

 

Hardworking meh? My frens set up company say all the guys sibeh lazy one. The only ones hardworking are the char bors.

Hardworking Char Bor enough lor...kekeke...

[Jamesc]

Lucky I have millions in Vietnam money.

 

[Watwheels]

Talk is easy. If in an ideal situation, yes they will overtake Singapore....there's always a "but".

 

Provided there's no corruption lo. Do you think it's possible?

 

Now you see why many countries still choose Singapore even if it's not what they have in mind. I know we are not 100% corruption free but we are a lot better than others. Hopefully we can stay that way in 10 years.

[Othello]

means nothing without context lah ............. article itself said also .... Indonesia economy is 1T ! so ? 

[Soya]

Not surprise at all.... they are hardworking folks.... if no unforeseen things happen, they will soon become one of the dragon... prob overtaking all the Asia major economy less China and Japan... time to look at putting some investment there

Hardworking in a 12-12-7 sweatshop kinda way?

[Staff69]

I believe they will with their population structure.

 

Singapore really need to start having more babies

 

Edited May 29, 2019 by Staff69

[Jman888]

i thought the hardworking one are mostly working as FW in other country, those left behind were the lazy one waiting for women to feed them  

 

* declaimer: i hear say one 

[Ct3833]

 

 

 

Hardworking meh? My frens set up company say all the guys sibeh lazy one. The only ones hardworking are the char bors.

Their salary is about 1/5 of ours , their land and other operating cost are even cheaper, the only problem is their import tax can be expensive. Assuming they are 1/2 as hard working, overall they are a still lot cheaper than sgp. Those who are familiar with VN will know the amount of Korean companies investing there big time.

[Victor68]

Among the indo china region, they have the potential in my opinion. They should surpass singapore but for the same reasons they have not. The war didn't help and they need to thanks who they should know.

[Mercury1]

Agree, will be good invest in a Vietnam etf to take advantage of their growth

 

Among the indo china region, they have the potential in my opinion. They should surpass singapore but for the same reasons they have not. The war didn't help and they need to thanks who they should know.

 

[BanCoe]

I believe they will with their population structure.

 

Singapore really need to start having more babies

 

Screenshot_20190529-150015_Chrome.jpg Screenshot_20190529-150213_Chrome.jpg

U got babies or babes ??

[Icedbs]

Not too bother by their bigger GDP because honestly, many countries also have GDP bigger than SGP simply because their population is big.

 

Wait until their GDP per capita is bigger than SGP, then we talk.  

[Fu11thr0tt1e]

Our PAP gov really complacent. Period

[Jamesc]

I have been to Vietnam many times and the ladies are very hardworking.

 

Even the massage there is good.

 

I always know Vietnam got potential.

 

[Inlinefour]

a lot of my friends are marrying Viet SYTs so I guess they dont overtake but taking over SG

 

cos future Gen are mostly mixed Viet or mixed Tiong...not much of local Sinkies liao

 

anyway this island already looks so foreign to most of us

 

 

PS. 1 thing I must agree is that these Viet SYTs are really nice