Viet Nam Likely to Outperform Regional Peers: Asia House Annual Outlook 2024

11:40:26 AM | 1/28/2024

Viet Nam's economy is likely to continue to outperform its regional peers through 2024, according to the Asia House Annual Outlook 2024.

The report noted that in the first ten months of 2023, FDI in manufacturing projects was roughly US$18 billion, or 73 percent of total FDI inflows registered in the same period. Additionally, foreign investors will increasingly turn to Viet Nam to diversify their supply chains.

Viet Nam's digital transformation program aims to situate its domestic tech firms as global players. The nation has a thriving tech start-up environment and there has been significant public investment in AI.

Viet Nam is a leader in crypto-currency adoption and in blockchain projects. It is estimated to have more than 200 active blockchain projects and has been deploying blockchain technology for a number of functions, including for credit guarantees in trade and supply-chain finance.

Viet Nam will continue to leverage blockchain technology to boost efficiency in the logistics industry with a particular focus on firms in Ho Chi Minh City.

The Make in Viet Nam program, in which homegrown businesses manufacture globally competitive products, will scale growth in multiple sectors. A strong labor market (69 percent of the population are of working age) will aid this growth.

According to the report, as a major agricultural producer, Viet Nam will benefit from inward investment in precision agriculture, AI monitoring and analysis to optimize yields and fertilizer use.

The reports said that economic dynamism, resilient fundamentals and the openness of Viet Nam's economy augur well for its green finance ecosystem.

Regulatory incentives to encourage a shift to financing the green economy will be key in 2024 and beyond. The continued promotion and scaling of incentives to attract and channel green finance-with the engagement of domestic financial institutions-will spur Viet Nam's energy transition and help build resilience against climate shocks.

Source: GP