Vietnam, Cambodia regional exceptions to falling manufacturing trend: World Bank
Manufacturing as a share of output has peaked in most East Asia and Pacific (EAP) economies and began to decline among early industrializers, but still-industrializing Vietnam and Cambodia were the exceptions to this trend, the World Bank said Friday.

Singapore’s United Overseas Bank (UOB) trimmed its 2023 GDP growth forecast for Vietnam down to 6% from the 6.6% earlier this week. Photo courtesy of Vietnam News Agency.
In its April economic update released in Washington D.C., the bank noted EAP countries had experienced two decades of faster and less volatile growth compared to other economies until some 25 years ago.
But after the Asian financial crisis of 1997-1998, “the region saw only limited structural reforms and therefore little productivity-enhancing structural change,” the Washington D.C.-based lender said.
And despite being open to trade and investment in manufacturing, it remained “reluctant” to liberalize service sectors. As a result, productivity growth in many regional economies has been declining since the global financial crisis of 2008-2009.
“Limited growth in labor productivity had been driven more by capital deepening than total factor productivity growth,” the bank said. These trends in growth and productivity have coincided with a shift in the pattern of structural change."
In the decade between the Asian and global financial crises, “the share of manufacturing in GDP peaked and began to decline in the early industrializers” but “Cambodia and Vietnam were the exceptions to this trend.”
The bank’s April update revised downward its forecast for Vietnam at 6.3% this year, down from 6.7%. Cambodia’s GDP forecast for this year is unchanged at 5.2%.
Similarly, lower forecasts are also made for Indonesia (to 4.9% from 5.1%); 5.6% for the Philippines (down from 5.8 percent; 3.6% for Thailand (down from 4.1%). The prediction for Myanmar is 3% this year (no forecast was available in October).
The bank upwardly revised forecasts to 5.1% for China (from 4.5%), 3.9% for Laos (from 3.8%), and 4.3% for Malaysia (from 4.2%).
The global institution said it expected growth in the EAP region, which includes China, to pick up to 5.1%, up from its 3.5% growth last year, thanks to China's reopening and economic rebound, but high inflation and household debt will weigh on consumption in some countries.
"Most major economies of East Asia and the Pacific have come through the difficulties of the pandemic but must now navigate a changed global landscape," said the World Bank's vice president for the region, Manuela Ferro.
"To regain momentum, there is work left to do to boost innovation, and productivity, and to set the foundations for a greener recovery."
Economies of the region must also cope with three important challenges as policymakers act to sustain and accelerate economic growth in the aftermath of Covid-19. Rising tensions between major trading partners will affect trade, investment, and technology flows across the region. The rapid aging of the major economies of East and Southeast Asia heralds a new set of challenges and risks with implications for economic growth, fiscal balances, and health.
Finally, the bank said, the region is particularly exposed to climate risks, in part due to the high density of population and economic activity along its coasts.
Also Friday, Singapore’s United Overseas Bank (UOB) trimmed its 2023 GDP growth forecast for Vietnam down to 6%, compared with the 6.6% UOB put earlier this week. The updated 6% is lower than the World Bank’s 6.3%.
UOB said, “The revised projection assumes a rebound of GDP growth to 5.9% year-on-year in the second quarter of this year, and an average pace of 7.4% year-on-year in the second half of this year on the back of a recovery in global demand and strengthening of domestic services activities.”
Vietnam posted economic growth of 3.32% in the first quarter of 2023 compared to a year earlier, the General Statistics Office said Wednesday.
With last year’s 8.02% expansion, the highest in 12 years, Vietnam was one of Asia’s fastest-growing economies. However, the high growth rate in 2022 was partly derived from the low growth base in the pandemic years of 2020-2021, at 2.91% and 2.58% respectively.
- Read More
Halal market presents major opportunities for Vietnamese businesses
The global Halal market is projected to reach $5 trillion by 2030, with Malaysia alone expected to hit $113.2 billion, said Shariza binti Abdul Rasheed, Halal product manager at Maybank Malaysia.
Economy - Thu, August 7, 2025 | 9:18 pm GMT+7
Steel major Hoa Phat to pour extra $130 mln into central Vietnam plant
Vietnam’s leading steelmaker, Hoa Phat Group (HoSE: HPG), will increase investment in its Dung Quat 2 iron and steel production complex by VND3.4 trillion ($129.7 million) as part of an expansion plan.
Industries - Thu, August 7, 2025 | 8:03 pm GMT+7
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects
Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.
Energy - Thu, August 7, 2025 | 5:07 pm GMT+7
Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure
Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.
Companies - Thu, August 7, 2025 | 4:31 pm GMT+7
Northern Vietnam province accelerates $2.2 bln LNG-to-power project
Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.
Energy - Thu, August 7, 2025 | 4:17 pm GMT+7
Vietnam's seafood firms ride profit wave ahead of US tariff hike
Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.
Economy - Thu, August 7, 2025 | 2:21 pm GMT+7
Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC
Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.
Companies - Thu, August 7, 2025 | 2:01 pm GMT+7
Indonesia, Malaysia, Thailand expand local currency transaction network
Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.
Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7
ASEAN to sign MoU on regional power grid implementation
ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.
Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7
Vietnam overtakes Thailand to become world's second-largest rice exporter
Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.
Companies - Thu, August 7, 2025 | 12:41 pm GMT+7
Vietnam posts trade surplus of $10.18 bln in 7 months
Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.
Economy - Thu, August 7, 2025 | 12:19 pm GMT+7
Malaysia pledges big purchases, investments with US
Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.
Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7
Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt
Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.
Companies - Thu, August 7, 2025 | 10:11 am GMT+7
Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil
Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.
Economy - Thu, August 7, 2025 | 9:57 am GMT+7
Malaysia steps up efforts to explore nuclear energy potential
Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.
Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7
Indonesia's economy grows faster than expected
Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).
Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7