Vietnam's economy has enjoyed impressive growth for decades, with GDP to reach 7% in 2024

Recently, HSBC Bank in Vietnam affirmed that Vietnam has outstanding potential, especially when promoting digital transformation and developing renewable energy, towards sustainable growth.

Vietnam has achieved many impressive economic achievements in recent decades. (Source: Shutterstock)

Amidst the difficult global economic context, HSBC still forecasts that Vietnam's economy will grow by 7% in 2024, becoming the fastest growing economy in ASEAN and creating a new Gross Domestic Product (GDP) equivalent to the Netherlands.

HSBC Vietnam CEO Tim Evans said that Vietnam has achieved many impressive economic achievements in recent decades, rising to become one of the 40 largest economies in the world in terms of GDP and top 20 in terms of trade.

These advances have pushed per capita income up 43 times from 100 USD at the time of reform to 4,300 USD today.

However, the world is changing rapidly with two main trends being digital transformation and climate change. This requires adaptability to ensure sustainable development.

According to Mr. Tim Evans, the remarkable development of technology, especially artificial intelligence (AI), is changing all lives and professions.

"Covid-19 has accelerated digital transformation, promoting e-commerce, remote working and other online services. Vietnam has great potential for digital consumption thanks to its young population, high internet usage rate and thriving e-commerce ecosystem," said HSBC Vietnam CEO.

To fully exploit this potential, Vietnam needs to continue investing ineducation and improving access to technology.

In addition, climate change is both a challenge and an opportunity for Vietnam.

The Vietnamese government has issued national strategies on digital transformation and green growth. Businesses are also gradually realizing the importance of transformation and starting to implement response plans.

However, digital transformation and green transformation both require huge financial resources.

According to HSBC bank estimates, Vietnam needs about 400 billion USD to respond to climate change, the cost of global digital transformation is expected to reach nearly 4,000 billion USD by 2027.

Source: https://baoquocte.vn/kinh-te-viet-nam-tang-truong-an-tuong-keo-dai-nhieu-thap-ky-gdp-se-dat-7-trong-nam-2024-292187.html