Vietnam recorded a 2.6% increase in the gross domestic product in 2021 and its economic recovery from the pandemic is expected to accelerate this year, Business Times reported.

Production of smart electronic products at Hoa Lac Hi-tech Park. Photo: Thanh Hai

“Vietnam is punching well above its weight,” the Singapore-based newspaper suggested.

Once among the poorest countries in the world, its economy is now booming and the World Bank describes it as one of the most dynamic and emerging countries in the entire East Asia region, Business Times stated in an article as it referred to Vietnam as a new Asian tiger.

DBS Group Research forecasts GDP growth to reach 8% in 2022, boosted by an accommodative monetary policy.

Knight Frank’s latest Wealth Report estimates there were about 19,500 high-net-worth individuals in Vietnam in 2020, defined as those with assets of at least $1 million. By 2025, that number is expected to grow by almost 25% to tops 25,000. 

From bicycles to flashy cars, slums to luxury condos, Vietnam's roads, and skylines have undergone a dramatic transformation over the last 30 years.

The article attributed Vietnam’s significant transformation to the increasing FDI capital to the country. Many Singapore companies, including CapitaLand and Keppel, have invested heavily in the country as they seize abundant opportunities.

“The country has long been known as Southeast Asia’s coding farm, where talent and wages are in a sweet spot for companies to use it as a base for their technical development,” it added.

Among other factors contributing to the growth, Business Times noted Vietnam currently boasts the most solar power of any Southeast Asian nation today with 16.6 gigawatts of installed capacity as of 2020.

Meanwhile, the construction industry is set to continue its recovery in 2022 as several large-scale infrastructure projects move through different stages of development.

In 2022, Vietnam's National Assembly set the GDP growth target of 6-6.5%, marking a strong rebound from an economic expansion rate of 2.58% last year. This would result in a GDP per capita of $3,900.