In a government action plan approved Monday, a GDP per capita target of US$7,500 by 2030 has been set, The Investor is reporting. Vietnam’s GDP is currently US$4,620 according to IMF data which would mean Vietnam’s GDP would need to grow at a compounded annual growth rate–a CAGR–of 10.18 percent. For comparison, in the last five years Vietnam’s GDP has grown on a CAGR of just 6.08 percent.
This is an ambitious target purely based on the numbers. However, there is a lot more to it than that. Vietnam’s economic growth in recent years has largely been driven by foreign direct investment and influenced by the greater global economy which has faced a number of issues including the pandemic and wars in Ukraine and Gaza. In this context, Vietnam’s economy is not exactly on a stable footing making it unclear exactly how it might fare in the short to medium term.
See also: Vietnam’s Economy in the First Half of 2024: Unpacked