ASEAN has the opportunity to become the epicenter of sustainable economic growth

In recent years, despite numerous financial shocks experienced by other regions of the world, the economies of the Association of Southeast Asian Nations (ASEAN) member states have remained relatively stable, recording growth.

ASEAN trước cơ hội trở thành tâm điểm của tăng trưởng kinh tế bền vững

In the third quarter of 2023, Vietnam's GDP – the country with the first and third largest population in ASEAN – increased by 5.33% compared to the same period of the previous year. (Source: Getty)

GDP growth

Amidst geopolitical crises, global economic difficulties, and the post-Covid-19 pandemic challenges faced by many countries, with many economies stagnating or experiencing negative growth, statistics up to November 20th show that some ASEAN countries are still recording positive signs, gradually recovering, with growth increasing month after month and quarter after quarter.

According to the Philippine Statistics Authority, the country's economy recovered strongly in the third quarter of 2023, with gross domestic product (GDP) increasing by 5.9% year-on-year. Previously, the Indonesian Statistics Authority indicated that Indonesia's GDP in the third quarter of 2023 increased by 4.94%.

Meanwhile, Malaysia recorded faster-than-expected growth in the third quarter of 2023, with GDP increasing by 3.3% year-on-year, higher than the 2.9% growth in the second quarter of this year. According to the National Economic and Social Development Council (NESDC) of Thailand, GDP in the third quarter of 2023 grew by 1.5% year-on-year in 2022.

In Singapore, the Ministry of Trade and Industry (MTI) announced that, thanks to a rebound in tourism and manufacturing activity compared to the second quarter of 2023, the country's economy recorded higher-than-expected growth in the third quarter of 2023. Specifically, GDP in the third quarter of 2023 increased by 0.7% year-on-year – an improvement over the 0.5% growth in the second quarter of 2023.

In Vietnam, according to the General Statistics Office, GDP in the third quarter of 2023 increased by 5.33% compared to the same period last year. Although this is only higher than the growth rate of the same period in 2020 and 2021 during the 2011-2023 period, it has recorded a positive trend, with each quarter higher than the previous one (Q1 increased by 3.28%, Q2 increased by 4.05%, Q3 increased by 5.33%).

Connectivity is key.

According to official statistics, the ASEAN economy has achieved positive results over the past decade with an average growth rate of 4-5%. In 2022, the region's growth reached 5.7% and is projected to continue performing well this year. ASEAN is currently the world's 5th largest economy, 4th largest exporter, and second largest recipient of foreign investment.

Speaking at the 14th ASEAN Connectivity Symposium, themed “Promoting Connectivity Towards Transforming ASEAN into a Growth Hub,” held in Indonesia on November 8th, Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), stated that ASEAN connectivity has proven to be the foundation of the Association’s post-COVID-19 recovery strategy, with policy coordination, resource pooling, and partnership formation aimed at strengthening the region’s resilience. According to him, connectivity is key to inclusive economic development within ASEAN.

In a recent article, Indonesian Ambassador to Vietnam Denny Abdi emphasized: "Indonesia and Vietnam, as the first and third most populous countries in ASEAN, have made significant progress in cooperating in many areas to address common challenges and unlock new opportunities."

According to Ambassador Denny Abdi, despite numerous challenges, last year the ASEAN economy recorded GDP growth higher than the global average. In the coming years, the roles of Indonesia and Vietnam in the regional and global economies will become even greater. Both countries are developing rapidly and will play a larger role both regionally and globally.

The efforts of Indonesia and Vietnam are also spreading to other ASEAN member countries and are expected to contribute to rapid growth over the next few decades. This is a breath of fresh air for the rest of the world seeking opportunities to boost economic growth.

Ambassador Denny Abdi stated that, through this remarkable growth, Indonesia, Vietnam, and other ASEAN member states can forecast their own economic growth to boost regional and global economic growth. This is also the vision that Indonesia's ASEAN Chair theme for 2023 aims for: "ASEAN in stature: A focal point of growth".

Meanwhile, ASEAN Deputy Secretary-General for Economic Community Satvinder Singh stated that ASEAN needs to continue building capacity and strengthening the regional foundation to maximize the benefits of ASEAN connectivity and the ASEAN Economic Community. Currently, ASEAN countries are also committed to developing the ASEAN Connectivity Agenda after 2025 as part of the ASEAN Community after 2025.

Building a peaceful, stable, and cooperative ASEAN is both a responsibility and a self-driven effort, as well as a foundation for a people-centered and people-driven ASEAN that will serve as the impetus for a prosperous and sustainable ASEAN. These were the key messages conveyed at the 43rd ASEAN Summit and related meetings in Indonesia last September.

By strengthening cooperation with external partners as well as other countries within the bloc, ASEAN can enhance its own resilience while contributing to regional and global economic recovery. ASEAN is poised to become a hub of sustainable economic growth.

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