Saigoneer

BackStories » Vietnam » Vietnam Should Aim to Become High-Income Nation by 2045, PM Says

Vietnam Should Aim to Become High-Income Nation by 2045, PM Says

After Vietnam finished 2019 with impressive growth rates, leaders are optimistic that the country is on a stable trajectory to join the ranks of upper-middle-income or even high-income nations within a few decades.

Prime Minister Nguyen Xuan Phuc explained late last year at a meeting with city and provincial leaders that, if economic growth continues at the current pace, the country could soon surpass a Gross National Income (GNI) per capita of US$3,995 to be classified as an upper-middle-income country.

Upper-middle-income countries are defined by World Bank as those with a GNI per capita of between US$3,996 and US$12,375. Members include China, Iran, Malaysia, Mexico and Serbia. For high-income countries, that figure is above US$12,375. Phuc said Vietnam should aspire to be a high-income nation by 2045.

However, he also cautioned that, if growth slows, Vietnam will remain in the lower-middle-income country category with a GNI per capita between US$1,026 and US$3,995 several years longer. Other nations with that current distinction include Cambodia, India, Indonesia, Laos, Myanmar and the Philippines. 

The aspiration comes on the heels of numerous positive economic reports and predictions in recent years. The total economy is roaring ahead with GDP growth topping 7% for 2019. Experts are bullish, expecting average incomes to hit US$10,000 by 2030 and crack into the top 20 of total global economies by 2050.

Amongst the optimism, however, rests some cause for concern. As the total economy grows, the wealth gap is increasing dramatically. Economic development can also carry with it a multitude of environmental effects, including the reduction of air and water quality and loss of natural environments. 

Related Articles

in Vietnam

Vietnam’s Economy Expands by 6.8% in 2019, World Bank Says

In a press conference held Tuesday, World Bank officials said Vietnam’s GDP has expanded by 6.8% in 2019, while public debt has fallen by almost 8% since 2016.

in Vietnam

IMF Predicts 2.7% GDP Growth in 2020 for Vietnam as Other Economies Contract

The COVID-19 pandemic will dampen Vietnam’s economic growth for 2020, though the country will be in a better position than most of its better-off peers.

in Vietnam

Over 30m Workers in Vietnam Impacted by Pandemic: Labor Ministry

While Vietnam has thus far avoided serious public health impacts from the coronavirus pandemic, it has not escaped the economic ravages of the global emergency.

in Vietnam

Planning Ministry Earmarks $2.6bn of Financial Aid for Workers Affected by Covid-19

Some major sectors of Vietnam’s economy have had to close to limit the spread of Covid-19, sending scores of workers into temporary unemployment. How will they be supported during this period of hards...

in Vietnam

13.4% of All Vietnamese Flights Were Delayed Last Year: CAAV

Vietnamese carriers reported 39,632 delays in 2018 which represents 13.4% of all operated flights.

in Vietnam

14 Dead Admidst Devastating Landslides in Nha Trang

Flooding caused by tropical depression Toraji has destroyed homes and left residents of Khanh Hoa Province scrambling to recover and rebuild.