Vietnam remains an economic spotlight in ASEAN: experts

Vietnam is one of the fastest-growing economies in Southeast Asia with promising potential and favourable macroeconomic factors - Illustrative image (Photo: VNA)

HCM City - Vietnam is one of the fastest-growing economies in Southeast Asia with promising potential and favourable macroeconomic factors such as a young population, skilled labour force, and abundant natural resources, according to Deputy Chairman & CEO of Singapore-based United Overseas Bank (UOB) Wee Ee Cheong.

Addressing the bank’s annual “Gateway to ASEAN” conference, held in Ho Chi Minh City on September 6, the official said that Vietnam has benefited from the global supply chain shift and free trade agreements, leading to a significant increase in foreign direct investment (FDI), reaching record levels recently. Additionally, the country has become a key global market for the production of electronic equipment.

Phan Van Mai, Chairman of the Ho Chi Minh City People's Committee, said that the consistent orientation of Vietnam and Ho Chi Minh City is to pursue peace, friendship, cooperation, and mutual development with partners. The Association of Southeast Asian Nations (ASEAN), including Vietnam, is affirmed to be the fastest growing region of the global economy, and continue to be a driving force for world economic growth.

Vietnam in general and Ho Chi Minh City in particular are striving to catch up with the common development trends of the world and the region in developing circular economy, digital economy, and green economy, Mai said, adding that with its role and position, the city is always ready to cooperate with and create favourable conditions for partners to invest and organise production and business activities in the city.

Chairman of the Ho Chi Minh City People's Committee Phan Van Mai speaks at the conference (Photo: VNA)

Experts agreed that Vietnam is an ASEAN country that has benefited to varying extents from the reorganisation of global export markets. Specifically, it is attracting substantial investments across various sectors, with manufacturing and processing remaining the primary focus for FDI, accounting for over 72% of the total registered capital in 2023. This aligns with the long-standing trend of Vietnam becoming a key destination for manufacturing due to its competitive labour costs, increasingly developed infrastructure, and business-friendly policies.

In terms of labour, Vietnam's job market saw positive developments in 2023, with the unemployment rate decreasing to 2.28%. The labour force also increased to 52.4 million people, indicating a plentiful workforce that continues to attract foreign investors.

As a crucial link in the global supply chain, Vietnam has become a preferred destination for groups looking to diversify their manufacturing activities amid global uncertainties, supply chain restructuring, and the "China Plus One" strategy.

Victor Ngo, CEO of UOB Vietnam, said that within the ASEAN region, Vietnam stands out as a gateway to the region. Its strategic location, large and young population, and business-friendly policies make the country an attractive destination for companies looking to tap into the growth potential of ASEAN.

This is the first time UOB has held its annual conference in Vietnam, attracting the participation of 600 delegates who are experts and leaders and enterprises and trade partners from ASEAN countries, China, and Hong Kong (China)./.