Applying the Rule of 70, which states that the number of years it takes for the level of any variable to double is approximately 70 divided by the annual percentage growth rate of the variable (CFA, 2009), to answer the question: "how long would it take Vietnam's real GDP per person to reach that of America in 2008?"
Assuming that Vietnam will continue to grow at speed of 7%, with 2008 GDP per capita of Vietnam is 16 times less than that of the US. According to rule of 70, Vietnam's GDP per person doubles in 10 years (70 divided by 7); it doubles again to 4 times its current level in another 10 years, again to 8 times in another 10 years, and again to 16 times. So after 40 years of growth at 7% a year, Vietnam's real GDP per person is 16 times its current level and equals that of America (CFA, 2009)
From: Snippets.com
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