Vietnam to remain among fastest-growing countries in Southeast Asia

August 02, 2024 | 17:48

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Vietnam is forecast to post breakout growth as the fastest-growing economy in Southeast Asia in the next decade.

A report titled "Navigating high winds: Southeast Asia Outlook 2024-34" was released on August 1, compiled by the Development Bank of Singapore, consulting firm Bain & Company, and Angsana Council.

The report forecasts the expected growth of the six largest Southeast Asian economies of Vietnam, Singapore, Malaysia, the Philippines, Indonesia, and Thailand.

Vietnam to remain among fastest-growing countries in Southeast Asia

According to the report, over the next decade, Southeast Asia will likely grow faster than the previous decade, with higher GDP growth and higher total foreign direct investment (FDI) than China. Southeast Asia’s growth will be driven by stronger domestic economies and a resurgence in investment catalysed by China + 1 supply chain shifts.

Specifically, Southeast Asia is predicted to grow GDP by 5.1 per cent, on average, in the next decade. Vietnam and the Philippines are expected to be the faster-growing countries, with Vietnam remaining in front.

"Vietnam is forecast to maintain a GDP growth rate of 6.6 per cent in the 2024-2034 period and its export-oriented economy is well-positioned to capture China + 1 opportunities," the report said. "The country also boasts a highly diverse source of FDI, productive interprovincial competition, and high-quality workforce and education levels."

To grow faster than the forecasts, Southeast Asia should invest in new growth sectors, foster tech-enabled disruptors, expand capital markets’ breadth and depth, and accelerate the green transition, the report added. The region should also commit to growth-friendly multilateral initiatives, including the Regional Comprehensive Economic Partnership, the Belt and Road Initiative, and a transnational electricity grid.

Strong economic fundamentals are key to fast recovery in Vietnam

Vietnam’s economic recovery has been faster than expected and continues despite the challenges of the world's socioeconomic issues.

Vietnam among ASEAN economies predicted to grow fast

Vietnam is among the six ASEAN economies forecast to grow by 4.2 per cent in 2023, outpacing the global gross domestic product (GDP) growth of 2 per cent, according to Maybank Group president and chief executive officer (CEO) Datuk Khairussaleh Ramli.

Vietnamese economy fared well in Q1 despite external risks

The global economy is facing several headwinds, including the slowdown in China and the Eurozone as well as the US Fed's possible delay of interest rate cuts. In this context, ASEAN may be a global safe haven for economic growth. Abel Lim, head of Wealth Management Advisory and Strategy at UOB, discussed with VIR's Thanh Van the outlook of the global economic condition and its impact on Vietnam.

By Thanh Van

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