DBS: Vietnam amongst Southeast Asia fastest growing economies in the next 10 years
The six leading economies in the Southeast Asia region, namely Vietnam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, are expected to maintain a GDP growth rate of over 5.1 per cent in the next 10 years according to a report released on August 1.
In a report, entitled "Navigating Headwinds: Southeast Asia Outlook 2024 - 2034," released by the Development Bank of Singapore (DBS), consulting firm Bain & Company, and the Angsana Council, analysts predict that these top Southeast Asian economies will benefit from the region's consumer market of over 600 million people and strong ties with major trading economies.
However, according to the report, increasing protectionism in developed markets and widespread deindustrialisation due to shifting competitive dynamics could negatively impact these economies.
Specifically, the report forecast Vietnam will be the fastest growing economy in the region in the next 10 years with an average GDP growth of 6.6 per cent, with the Philippines and Indonesia trailing behind with average GDP growth of 6.1 per cent and 5.7 per cent, respectively.
As a whole, DBS forecasts that the six leading economies in the Southeast Asia region, namely Vietnam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, are expected to maintain a GDP growth rate of over 5.1 per cent in the next 10 years.
For Vietnam, positive drivers include a well-positioned export-oriented economy, highly diverse sources of FDI, productive inter-provincial competition, and high-quality workforce and education levels, according to the report.
Particularly, Vietnam will also see robust capital growth, supported by rising semiconductor and electric vehicle batteries FD. The country will also have a window over the next decade to reap demographic gains.
Despite these opportunities, negativities remain for the Vietnamese economy, with the report listing them as credit weakness, energy and water shortages, and slow movement on green infrastructure, among others, the report remarked.
