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

In recent years, despite many financial shocks that other regions of the world have experienced, the economies of the members of the Association of Southeast Asian Nations (ASEAN) 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, the GDP of Vietnam - the country with the first and third largest population in ASEAN, increased by 5.33% over the same period last year. (Source: Getty)

GDP growth

In the context of the global geopolitical and economic crisis, countries facing many difficulties after the Covid-19 pandemic, many economies stagnating, negative growth, according to statistics up to November 20, some ASEAN countries still recorded positive signals, gradually recovering, growth next month higher than the previous month, next quarter higher than the previous 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% compared to the same period last year. Previously, the Indonesian Statistics Authority pointed out 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% in the second quarter of this year. Meanwhile, according to Thailand's National Economic and Social Development Council (NESDC), the country's GDP in the third quarter of 2023 grew by 1.5% year-on-year.

In Singapore, the Ministry of Trade and Industry (MTI) said that thanks to the recovery of tourism and manufacturing activities compared to the second quarter of 2023, the country's economy recorded a higher growth rate than estimated in the third quarter of 2023. Specifically, GDP in the third quarter of 2023 increased by 0.7% compared to the same period last year - an improvement compared to the growth rate of 0.5% 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% over the same period last year, although only higher than the growth rate of the same period in 2020 and 2021 in the period 2011-2023, it recorded a positive trend, with each quarter higher than the previous quarter (the first quarter increased by 3.28%, the second quarter increased by 4.05%, and the third quarter increased by 5.33%).

Connection 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 forecast to continue to achieve positive results this year. ASEAN is currently the 5th largest economy, the 4th largest exporter and the second largest foreign investment attraction region in the world.

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

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

According to Ambassador Denny Abdi, despite many challenges, last year, the ASEAN economy recorded a GDP growth rate higher than the global average. In the coming years, the role of Indonesia and Vietnam in the regional and global economy will only grow. The two countries are developing rapidly and will play a larger role both regionally and globally.

The efforts of Indonesia and Vietnam have also spilled over to other ASEAN member states, which are expected to grow rapidly in the coming decades. This is a breath of fresh air for the rest of the world looking for opportunities to boost economic growth.

Ambassador Denny Abdi said that through this remarkable growth, Indonesia, Vietnam and other ASEAN member countries can project their economic growth to promote regional and global economic growth. This is also the vision that Indonesia's 2023 ASEAN Chairmanship theme aims for: "ASEAN of stature: The epicenter of growth".

Meanwhile, Deputy Secretary-General of ASEAN for Economic Community Satvinder Singh said that ASEAN needs to continue to build capacity and strengthen the regional foundation to maximize the benefits of ASEAN connectivity and the ASEAN Economic Community. Currently, ASEAN countries are also committed to building 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 an effort of the individual and a foundation for a people-centered, people-driven ASEAN that is a driving force for a prosperous and sustainable ASEAN. These are the messages delivered at the 43rd ASEAN Summit and related conferences 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 has the opportunity to become a focal point for sustainable economic growth.

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