The six leading economies in Southeast Asia, including Vietnam, the Philippines, Indonesia, Malaysia, Thailand, and Singapore, are projected to grow at an average annual rate of 5.1% over the next decade.

Workers seen at a steel factory in central Quang Ngai Province. Photo by VnExpress/Giang Huy 

This projection was released in a report on August 1 by the Development Bank of Singapore (DBS), consulting firm Bain & Company, and the Angsana Council.

In the report titled “Navigating High Winds: Southeast Asia Outlook 2024 – 34″, 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, increasing protectionism in developed markets and widespread deindustrialisation due to shifting competitive dynamics could negatively impact these economies.

Specifically, the report forecast Vietnam, Indonesia, and the Philippines to be the faster-growing countries, with Vietnam continuing to stay ahead.

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.

Nevertheless, negativities remain, with the report listing them as credit weakness, energy and water shortages, and slow movement on green infrastructure, among others.

VNA (Source: e.vnexpress.net)