Vietnam among ASEAN economies predicted to grow fast

Kuala Lumpur – 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.

Opening the ongoing hybrid conference Maybank Invest ASEAN 2023 themed “ASEAN Reboot: Reimagining The Future” held by Maybank in Singapore from June 20-21, Ramli emphasised the resilience of ASEAN after the COVID-19 pandemic.

He noted that with a combined population of over 660 million and a collective GDP of almost 3.66 trillion USD in 2022, ASEAN ranks as the third largest regional economy in Asia and the fifth biggest economy in the world, after the US, China, Japan, and Germany.

Foreign direct investment (FDI) inflows to ASEAN rebounded in 2021 to 174 billion USD, up 42% from the previous year, reflecting the attractiveness of the region’s economy for global investors.

ASEAN’s resilience was evident in portfolio fund flows, he said, noting that “even when foreign investors pulled out of equities last year, there was a sufficiently deep domestic investor base in the region to absorb the volatility”.

Another area of optimism for the region's economy is on digitalisation, particularly in the financial service sector, he added.

Vietnam's attendance in the upcoming Paris Summit for a New Global Financial Pact reflects the country's continued strong and consistent commitment in responding to climate change and responsibility in joining hands with the international community to address global challenges, Vietnamese Ambassador to France Dinh Toan Thang said.

The end of 2023 is forecast to be an exciting time for mergers and acquisitions in the real estate sector, which is set to help domestic enterprises lower their debt repayment pressures.