Asia House Forecasts: Vietnam to Outshine its Asian regional Counterparts Throughout 2024​

• 10 February 2024
• International News
• 3824 Views

In the realm of thriving Asian economies, Vietnam emerges as a standout performer, poised to outshine its regional counterparts throughout 2024, according to the Asia House Annual Outlook released on 23 January in London.

The report anticipates approximately 5% overall growth across eight key Asian economies, with Vietnam and the Philippines leading the charge. Focused on Vietnam’s robust fundamentals and an open economy, the report underscores the nation’s appeal for significant inward investments, particularly in its manufacturing and export sectors.

Highlighting Vietnam’s economic resilience, the report states that FDI in manufacturing projects reached approximately US$18 billion in the first ten months of 2023, comprising 73% of total FDI inflows during the same period. As geopolitical tensions and global pressures loom, foreign investors are increasingly turning to Vietnam as a strategic alternative to diversify their supply chains away from China.

A pivotal aspect of Vietnam’s growth narrative is its digital transformation program, positioning domestic tech firms as global players. Backed by substantial public investment in AI and a thriving tech startup environment, Vietnam’s National Innovation Centre fosters breakthroughs in various sectors. As AI reshapes the economic landscape, it is set to drive inward productive investments in 2024.

The ‘Make in Vietnam’ program, designed to propel homegrown businesses into global competitiveness, will play a pivotal role in scaling growth across multiple sectors. A robust labor market, with 69% of the population in the working age bracket, is expected to further bolster this growth trajectory.

In the year ahead, AI is forecasted to revolutionize multiple sectors, catalyzing positive economic spillovers. The agricultural sector, a key player in Vietnam’s economic landscape, stands to benefit significantly from inward investments in precision agriculture, AI monitoring, and data-driven optimization.

The report emphasizes that Vietnam’s economic dynamism, resilient fundamentals, and openness position it favorably for a thriving green finance ecosystem. Regulatory incentives promoting the shift to a green economy are anticipated to be key drivers in 2024, aligning with global efforts for sustainable practices.

The Bank for Investment and Development of Vietnam’s issuance of green bonds, earmarked for financing green projects, marks a significant stride. The report anticipates that additional efforts to scale green bond issuance will deepen Vietnam’s green finance ecosystem and contribute to its energy transition.

Amid geopolitical uncertainty, conflict, and climate change, the report positions Asian economies as the global growth engine in 2024. With regional trade, digital technology advancements, and green finance at the forefront, Vietnam stands as a beacon of economic resilience and sustainability.

• Economy and Finance