Large ASEAN economies stable amidst external shocks: Qatar National Bank
Large ASEAN economies are relatively resilient to sudden changes in risk sentiment and capital flows, according to Qatar National Bank (QNB).
The bank's weekly economic commentary focused on large ASEAN economies Indonesia, Thailand, Malaysia, and the Philippines, through the assessment of external vulnerability along two dimensions: the external financing needs and the overall level of official foreign exchange (FX) reserves.
Countries with large external financing needs are required to finance it either with additional foreign capital or drawing down their own FX wealth.

Tourists visit the Grand Palace in Bangkok. Photo courtesy of Xinhua.
It pointed out that Thailand is still in a good position to weather sudden changes in capital flows. Even with international tourism still significantly below pre-pandemic levels, the situation remains stable.
The country continues to run sizable current account surpluses, which helped it amass $221 billion in official FX reserves, comfortably covering 209% of the IMF reserve adequacy metric.
The economic commentary deemed Malaysia, a big producer of both manufacturing goods and commodities, as another resilient ASEAN economy.
Like Thailand, the country had also run persistent current account surpluses for years, as a net oil and soft commodity exporter, underlining that Malaysia has been positively affected by the overall strength of commodity markets in recent years, which resulted in bigger current account surpluses.
Malaysia's reserve adequacy metrics are much tighter than those for Thailand, with the central bank holding almost half of the amount of FX reserves that Thailand holds at 113 billion USD. However, Malaysia is still in the safe zone of the International Monetary Fund's (IMF) reserve adequacy metric with a 115% coverage.
The economic commentary highlighted that the Philippines is a net external borrower, which means that it runs current account deficits. With a large trade deficit that is currently only partially offset by sizable inflows of remittances from the community of Philippine expatriate workers, the country is expected to run a current account deficit that amounts to around 2% of GDP.
While the deficits are partially driven by a healthy push for much needed investment, the deterioration of the external position has so far been sizable. However, monetary authorities control ample FX reserves. Official reserves of $103 billion cover 196% of the IMF reserve adequacy metric.
With respect to Indonesia, traditionally the large ASEAN country most exposed to potential external shocks, is now back to a current account deficit position. This comes after a short hiatus benefiting from a commodity boom that has propped up its external revenues, due to high prices for coal, gas, and palm oil.
In fact, the country is now expected to run a current account deficit of about 1% of GDP this year. The deficit is expected to last for longer, as the delivery of a sizable pipeline of capital expenditure projects will require more imports. Indonesian official FX reserves amount to $136 billion, covering 112% of the IMF reserve adequacy metric.
- Read More
Leading industrial park developer Becamex to gain from Binh Duong province’s merger into HCMC: broker
Becamex IDC Corp, a leading urban and industrial park developer based in Binh Duong, is expected to benefit from the province’s merger into Ho Chi Minh City, with many new development opportunities, according to Vietcombank Securities (VCBS).
Companies - Sat, June 14, 2025 | 8:00 am GMT+7
Vietnam Airlines secures $1.5 bln funding from ING Bank for strategic expansion
Vietnam Airlines and ING Bank have signed an MoU for bilateral financial cooperation, securing capital funding of up to $1.5 billion.
Companies - Fri, June 13, 2025 | 10:56 pm GMT+7
Lawmakers scrutinize dual-city international financial center plan
Discussing a draft resolution on establishing an international financial center in Vietnam, some parliament members have proposed careful consideration of a dual-city model based on regional development strategies and investment efficiency.
Finance - Fri, June 13, 2025 | 10:49 pm GMT+7
Vietnam among world’s most food-self-sufficient nations: study
As concerns mount over the potential for disruptions to global trade, a new study published in the journal Nature Food has identified Vietnam as one of the few countries with a high level of food self-sufficiency, capable of withstanding major interruptions to food imports and exports worldwide.
Southeast Asia - Fri, June 13, 2025 | 10:41 pm GMT+7
Bad debts at Vietnamese commercial banks remain a concern
While the most challenging period for bad debts in Vietnam appears to have passed, potentially irrecoverable debts have reached a record high, accounting for 1.25% of total outstanding customer loans, or more than VND176 trillion ($6.74 billion), according to a new report by research firm Vietnam Report JSC.
Banking - Fri, June 13, 2025 | 7:58 pm GMT+7
Vietnam's galvanized steel major Ton Dong A to focus on domestic sales amid export market woes
Ton Dong A, a leading galvanized steel manufacturer in Vietnam, will focus more on the domestic market due to export difficulties, raising the ratio of domestic sales to 75%.
Companies - Fri, June 13, 2025 | 4:56 pm GMT+7
Vietnam's leading construction materials maker Viglacera appoints new chairman
The board of directors of Viglacera, Vietnam's leading construction materials maker, has appointed Tran Manh Huu as new chairman, succeeding Nguyen Van Tuan.
Companies - Fri, June 13, 2025 | 3:08 pm GMT+7
Vietnam urges Exxon Mobil to accelerate long-delayed Blue Whale gas field project
Vietnam expects the U.S.'s Exxon Mobil to speed up the long-delayed Blue Whale gas field project in line with the contract.
Energy - Fri, June 13, 2025 | 2:06 pm GMT+7
Prime Minister invites Swedish firms to invest in Vietnam's technology infrastructure, renewable energy
Prime Minister Pham Minh Chinh says he hopes Swedish companies will continue to expand their investment in Vietnam's information technology infrastructure, especially in remote areas.
Economy - Fri, June 13, 2025 | 11:28 am GMT+7
Singapore’s Keppel earns $76 mln from partial sale of property complex in southern Vietnam
Singapore-based Keppel Corporation brought in SGD98 million ($76.54 million) from selling a 22.6% stake in a property complex in Vietnam’s southern metropolis of Ho Chi Minh City.
Real Estate - Fri, June 13, 2025 | 8:28 am GMT+7
Thailand tightens e-commerce rules
Thailand is preparing to increase oversight of digital marketplaces, adding rules for certain types of platforms to strengthen consumer protection and ensure responsible e-commerce, Bangkok Post quoted the Electronic Transactions Development Agency (ETDA) as saying.
Southeast Asia - Thu, June 12, 2025 | 10:56 pm GMT+7
Malaysia attracts nearly $21 bln investment in Q1
Malaysia has secured MYR89.8 billion (nearly $21 billion) in approved investments for Q1, a 3.7% year-on-year increase amid a challenging global economic backdrop, according to the Malaysian Investment Development Authority (MIDA).
Southeast Asia - Thu, June 12, 2025 | 10:53 pm GMT+7
Thailand targets faster EV growth
Thailand’s Board of Investment (BoI) is stepping up efforts to promote the electric vehicle (EV) industry by offering more investment incentive packages aimed at supporting the emerging sector and creating additional EV-related jobs.
Southeast Asia - Thu, June 12, 2025 | 10:46 pm GMT+7
Malaysia to hold second round of trade talks with US
Malaysia’s Ministry of Investment, Trade and Industry (MITI) said Minister Tengku Zafrul Aziz is scheduled to travel to Washington D.C. on June 18 for a new round of discussions focused on tariffs.
Southeast Asia - Thu, June 12, 2025 | 10:40 pm GMT+7
Vietnamese banks' bond issuance sees three-fold rise in first 5 months
Vietnamese banks have significantly increased their bond issuance in 2025, with a reported total issuance of VND81 trillion ($3.1 billion) in the first five months of the year.
Finance - Thu, June 12, 2025 | 10:17 pm GMT+7
PVFCCo - Phu My, PVOIL sign strategic cooperation agreement in services, trade, and chemicals
Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo - Phu My) and Petrovietnam Oil Corporation (PVOIL) on Wednesday signed a strategic cooperation agreement, marking the beginning of a comprehensive, multi-sector collaboration between the two members of state-owned Petrovietnam.
Companies - Thu, June 12, 2025 | 7:56 pm GMT+7