IMF: Vietnam set to become Southeast Asia’s second-largest economy
DNO - Vietnam is projected to become Southeast Asia’s second-largest economy by purchasing power parity (PPP) in 2026 and move closer to the world’s top 20, according to International Monetary Fund (IMF) data.
Indonesia led the region with USD 5.047 trillion, while Thailand ranked second at USD 1.880 trillion, only around USD 42 billion ahead of Vietnam.
Malaysia and the Philippines followed Vietnam with GDP (PPP) of about USD 1.493 trillion and USD 1.469 trillion, respectively, while Singapore recorded more than USD 996 billion.
The regional rankings are expected to change in 2026. The IMF projects Vietnam’s GDP (PPP) to rise to around USD 2.025 trillion, surpassing Thailand and lifting the country to second place in Southeast Asia.
Indonesia is forecast to remain the region’s largest economy at USD 5.449 trillion, while Thailand is expected to reach USD 1.963 trillion.
If the forecast materialises, 2026 will mark the first time Vietnam’s GDP (PPP) exceeds USD 2 trillion.
Globally, Vietnam had already surpassed several developed economies by this measure in 2025, including the Netherlands, with GDP (PPP) of USD1.529 trillion, and Switzerland at USD 921 billion.
However, Vietnam remained behind Poland and Australia, whose GDP (PPP) stood at around USD 2.036 trillion and USD 2 trillion, respectively.
Vietnam is expected to continue climbing the rankings in 2027, when its GDP (PPP) is forecast to reach approximately USD 2.208 trillion, placing it 22nd globally.
This would put Vietnam ahead of Australia, projected at USD 2.181 trillion, while narrowing the gap with Poland, forecast at USD 2.264 trillion.
Vietnam is also expected to widen its lead over Thailand, whose GDP (PPP) is projected at USD 2.049 trillion in 2027.
GDP (PPP) measures the value of goods and services produced in an economy while adjusting for exchange rates and differences in local price levels, allowing more meaningful comparisons of purchasing power across countries.