ASEAN aims to become world’s fourth largest economy by 2030

By Vietnam News Agency
Wed, August 7, 2024 | 11:32 am GMT+7

ASEAN is on a positive trajectory to become the world’s fourth-largest economy by 2030 from the current fifth place, with GDP soaring 51% to $3.8 trillion in 2023 compared to $2.5 trillion in 2015, according to ASEAN Economic Community (AEC) Deputy Secretary-General Satvinder Singh.

ASEAN's GDP surged 51% to $3.8 trillion in 2023 from $2.5 trillion in 2015. Photo courtesy of bernama.com.

ASEAN's GDP surged 51% to $3.8 trillion in 2023 from $2.5 trillion in 2015. Photo courtesy of bernama.com.

Speaking at the conference “Vision 2024: Age of ASEAN” co-organized by Malaysia’s Ministry of Investment, Trade and Industry (MITI), the ASEAN Business Advisory Council and the Boston Consulting Group on Tuesday, Singh said the forecast was further reinforced by regional trade which rose to $3.5 trillion in 2023 from $2.3 trillion in 2015 which helped raise per capita income significantly.

He asserted that this reflects ASEAN’s persistent commitment to becoming an open economic region for global trade and investment.

According to Singh, ASEAN is one of the very few regions in the world where the bloc’s trade is almost as large as its GDP. The biggest component of trade is not its trade with China or the US, but intra-Asian trade, which is somewhere close to $800 trillion.

He also noted that ASEAN's trade with the rest of the world has also grown, which is the uniqueness of economies within the ASEAN bloc, unlike the European Union or the North American Free Trade Area, where most member countries trade with each other and not with the rest of the world.

Singh said in the global south, ASEAN is also the largest recipient of foreign direct investments totaling about $230 billion currently. It is forecasted that the global supply chain of companies with low carbon footprints and high-value activities is more likely to be in ASEAN countries in the coming years.

Some of the sectors to see significant growth include semiconductors, agriculture, data equipment as well as minerals and the metals industries.

Besides, an attractiveness of ASEAN is technology transformation, with frontier technologies such as 5G, artificial intelligence and internet of things to create another 8 trillion USD.

However, experts said ASEAN should work hard to reduce the cost of technology across their economies and ensure regional economies have access to technological devices and solutions.

Despite these economic positives, Satvinder expressed concern that the region’s young workers are expected to decrease while ageing workers are estimated to increase marginally, posing the risk of skills mismatch.

Across member countries, automation will also affect different types of occupations. Therefore, retraining young workers in technology and innovation through technology management hubs, online education platforms for science, technology and innovation and enhancing skills for the elderly will promote productivity and help strategic industries to grow.

Comments (0)
  • Read More
UAE tech firm G42, Vietnamese partners plan $2 bln hyperscale data center in southern Vietnam hub

UAE tech firm G42, Vietnamese partners plan $2 bln hyperscale data center in southern Vietnam hub

The United Arab Emirates's (UAE) state-backed firm G42 plans to partner with Vietnamese companies to develop a $2 billion hyperscale data center in Vietnam's southern hub Ho Chi Minh City.

Industries - Thu, July 10, 2025 | 4:22 pm GMT+7

Petrovietnam rakes in $19.5 bln in H1 revenue

Petrovietnam rakes in $19.5 bln in H1 revenue

State-owned Petrovietnam reported total revenue of VND510 trillion ($19.5 billion) in the first half of this year, driven by strong production performance.

Companies - Thu, July 10, 2025 | 4:03 pm GMT+7

Sustained momentum seen across all Vietnam's real estate sectors: Knight Frank

Sustained momentum seen across all Vietnam's real estate sectors: Knight Frank

Ho Chi Minh City and Hanoi saw solid office leasing and apartment market rebounds after the Lunar New Year holiday (Tet). Industrial land surged with record H1 supply and strong absorption, underscoring Vietnam's appeal, while eased visa policies and new direct international flights continue to support 5‑star hotels in both the cities, write Knight Frank analysts.

Real Estate - Thu, July 10, 2025 | 2:37 pm GMT+7

Vietnam's maritime heavyweight VIMC to expand container port services, bulk cargo transport

Vietnam's maritime heavyweight VIMC to expand container port services, bulk cargo transport

Vietnam Maritime Corporation (VIMC) will increase revenue and profit via expanding operations in areas such as container port services, bulk cargo transport, and shipping of agricultural products and steel, leveraging existing infrastructure and fleet advantages.

Companies - Thu, July 10, 2025 | 2:15 pm GMT+7

Vietnam infrastructure spending surges 40%

Vietnam infrastructure spending surges 40%

Vietnam’s infrastructure spending surged 40% year-on-year in the first half of the year, fuelled by fast-tracked approvals of projects amid provincial mergers; legal reforms granting provinces more decision-making authority over project approvals; and the streamlining of disbursement processes, write chief economist Michael Kokalari and senior analyst Thai Viet Trinh at VinaCapital.

Consulting - Thu, July 10, 2025 | 11:56 am GMT+7

Phu Quoc enters Travel + Leisure’s top luxury destinations

Phu Quoc enters Travel + Leisure’s top luxury destinations

Phu Quoc’s presence in Travel + Leisure’s Asia-Pacific luxury travel rankings continues to affirm the island’s status as a world-class destination.

Companies - Thu, July 10, 2025 | 11:43 am GMT+7

July dividend wave hits Vietnamese market following AGM season

July dividend wave hits Vietnamese market following AGM season

Ending the 2025 AGM season, a series of Vietnamese companies have announced dates for finalizing the list of shareholders eligible for dividends in July.

Finance - Thu, July 10, 2025 | 11:07 am GMT+7

Cordless technology leader TTI plans to expand manufacturing in southern Vietnam

Cordless technology leader TTI plans to expand manufacturing in southern Vietnam

Germany's Techtronic Industries Company Limited (TTI), a world leader in power tools and outdoor power equipment, wants to expand its Milwaukee plant in Ho Chi Minh City.

Industries - Thu, July 10, 2025 | 8:58 am GMT+7

Vietnam pledges support for AES investment in green energy

Vietnam pledges support for AES investment in green energy

Vietnam will continue to facilitate foreign investment and business activities, including those by U.S. enterprises, in line with laws and the country’s evolving development needs, said Tran Luu Quang, Chairman of the Party Central Committee’s Commission for Policies and Strategies.

Companies - Wed, July 9, 2025 | 11:10 pm GMT+7

Tezuka Daisuke appointed as new general director of Aeon Vietnam

Tezuka Daisuke appointed as new general director of Aeon Vietnam

Aeon Group has appointed Tezuka Daisuke, who is in charge of its organization reform for fiscal year 2025, as general director of Aeon Vietnam Co., Ltd.

Companies - Wed, July 9, 2025 | 11:03 pm GMT+7

Vietnam mobilizes over $7 bln for Just Energy Transition

Vietnam mobilizes over $7 bln for Just Energy Transition

Vietnam has so far mobilized more than $7 billion for its Just Energy Transition agenda under the Political Declaration on the Just Energy Transition Partnership (JETP).

Companies - Wed, July 9, 2025 | 10:38 pm GMT+7

Thailand hopes to conclude US trade talks before new deadline

Thailand hopes to conclude US trade talks before new deadline

Thailand is optimistic that it can finalize a trade deal with the U.S. before the August 1 deadline to avoid a 36% tariff imposed by President Donald Trump, according to Finance Minister Pichai Chunhavajira.

Southeast Asia - Wed, July 9, 2025 | 10:34 pm GMT+7

Southeast Asia seeks additional tariff negotiations with US

Southeast Asia seeks additional tariff negotiations with US

Southeast Asia's biggest economies are preparing to intensify trade negotiations with the U.S. after being subjected to steep tariff rates, despite having made a series of last-minute proposals aimed at increasing imports and significantly reducing tariffs on U.S. goods.

Southeast Asia - Wed, July 9, 2025 | 10:31 pm GMT+7

Foreign capital massively flows into banking, securities stocks

Foreign capital massively flows into banking, securities stocks

Foreign investors net bought for the sixth consecutive session on the Vietnamese stock market Wednesday, to the tune of nearly VND2,000 billion ($76.5 million), focusing on banking and securities stocks.

Finance - Wed, July 9, 2025 | 10:17 pm GMT+7

Four new container terminals to be built in northern Vietnam economic hub

Four new container terminals to be built in northern Vietnam economic hub

Prime Minister Pham Minh Chinh has granted in-principle approval for the development of four new container terminals at Lach Huyen Port in the northern city of Hai Phong.

Infrastructure - Wed, July 9, 2025 | 5:36 pm GMT+7

Sausage mogul eyes $5 bln green energy, cattle project in northern Vietnam

Sausage mogul eyes $5 bln green energy, cattle project in northern Vietnam

Mai Huy Tan, who founded and later sold the popular Duc Viet sausage brand, has proposed a $5 billion circular economy complex in Quang Ninh province, northern Vietnam.

Industries - Wed, July 9, 2025 | 5:14 pm GMT+7