Vietnam 2035: A growing global middle class from 11% of the 90 million population market in 2015 to more than 50% in 2035
With Vietnam’s aspirations to be a modern and industrial nation moving toward becoming a prosperous, creative, equitable, and democratic society, five specific quantitative criteria were set forth in the joint Vietnam – World Bank report “Vietnam 2035” in relation to that objective:
§ A GDP per capita of at least $18,000 (in 2011 PPP) with a growth rate of 6% year
§ An urbanization of the Vietnamese population > 50%
§ A share of industry and services in GDP at more than 90% and in employment at more than 70%.
§ A private-sector share in GDP of at least 80%.
§ A score of at least 0.70 on the UN’s Human Development Index.
Such a realization which will not be straighforward, will require i) a strong-willed economic government with enhanced capacity and clear accountability by the State and ii) an acceleration of the needed transformations particularly in the building of a competitive and leading private sector and in the acquisition and transfer of technological and innovative capacity.
Vietnam however is well placed for the challenge:
§ with its political stability and the higher integration into world trade
§ having achieved a GDP per capita fastest growth rate (behind China only) over 1991-2014 . Continuing with the high growth pace to 2035 and so for more than a 50 year period, will create conditions for the country to reach the high come rank and avoid the risk of middle income trap,
§ with a large domestic market of 90 millions people, of which more than half is global middle class (note).
and so Vietnam is and should be clearly a country of first choice for your now and long term investments
Global middle class consumer is defined as consumer with a daily consumption of $15 a day or more in 2011 purchasing power parity (PPP) terms.