Vietnam surpasses Indonesia on per-person GDP. Is Thailand next?
Vietnam’s average economic output per person is set to overtake Indonesia’s, according to the International Monetary Fund. Gross domestic product per capita, which provides a snapshot of a country’s standard of living, is projected to rise 8.9 per cent to US$5,259 in Vietnam this year – nearly double the figure a decade earlier and overtaking Indonesia’s US$5,153. This would also rank Vietnam…
The International Monetary Fund projects Vietnam's average economic output per person to surpass Indonesia's by the end of 2023, according to recent wire material. Vietnam's GDP per capita is expected to rise by 8.9 percent to $5,259, nearly double the figure from a decade ago and overtaking Indonesia's $5,153. This would rank Vietnam fifth among ASEAN members, behind Singapore, Brunei, Malaysia, and Thailand.
Analysts attribute Vietnam's growth to its strengths in export manufacturing, foreign investment in electronics and other higher-value industries, and a massive public infrastructure push. However, Ha Hoang Hop, a think tank chairman, noted that GDP per capita figures are influenced by factors like inflation and exchange rates, which could potentially neutralize Vietnam's lead.
Vietnam's GDP growth in the third quarter hit 9.95 percent, its fastest quarterly expansion since the Covid-19 pandemic, driven by strong exports and infrastructure investments. Yet, Indonesia's growth has remained around 5 percent, though it remains Southeast Asia's largest economy with a projected GDP of $1.48 trillion this year, compared to Vietnam's $542 billion.
Vietnam aims to raise its GDP per capita to around $8,500 by 2030, roughly matching Thailand's current level. While analysts agree that Vietnam's progress is impressive, they maintain that it will take time for the country to surpass Thailand in terms of GDP per capita.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.