Viet Nam to host “Gateway to ASEAN” conference for first time
VGP - “Gateway to ASEAN”, an annual regional conference organized by Singapore-based United Overseas Bank (UOB), will be held for the first time in Viet Nam on September 6.
This year's conference will be held in Ho Chi Minh City, Viet Nam's most dynamic city, with the participation of over 600 guests, including economists, government officials and business leaders from ASEAN member countries.
Theme "ASEAN: Crossroad to the World", delegates to this third edition will discuss the immense potential and opportunities of ASEAN and Viet Nam.
Speakers will also discuss key factors driving economic growth in the region, government policies to facilitate cross-border transactions, supply chain diversification, promoting the digital economy, and moving towards net-zero emissions.
ASEAN – a region on the strong rise
Ahead of the event, Suan Teck Kin, executive director at UOB Global Economics & Market Research said, in the context of global market volatility and instability, ASEAN has overcome recession risks, maintained growth and controlled inflation rates lower than G3 economies (including the US, Eurozone, and Japan).
The Asian Development Bank forecasted that the bloc's growth rate in 2024 will reach 5 percent, he said, noting that the growth rate has been maintained throughout the past decade.
In terms of trade, ASEAN is a region with a large trading bloc, but most trade activities take place outside the region. In 2022, ASEAN's trade with rest of the world hit US$3.8 trillion, 80 percent of which were trade value with non-ASEAN countries.
In contrast, the EU has a higher proportion of intra-regional trade (80 percent), showing that ASEAN's trade is globally integrated, especially with big economies such as China and the U.S., highlighted executive director.
Meanwhile, the shift in U.S. trade flows has given ASEAN an advantage. In 2016, about 21 percent of U.S. imports came from China. This number has dropped to 13 percent today, while imports from ASEAN have increased from 7 percent to about 11 percent.
ASEAN has become China's largest trading partner, surpassing the EU and the U.S.
China's trade with ASEAN has increased significantly, while trade with the U.S. and the EU has decreased. This reflects a broader shift toward closer economic ties between China and Southeast Asia, Suan Teck Kin emphasized.
Viet Nam-a bright spot in regional panorama
Viet Nam is considered a "bright star" in ASEAN with an economic growth rate that has remained high for many years despite global fluctuations.
Data from the General Statistics Office showed that Viet Nam's GDP in the second quarter of 2024 was estimated at 6.93 percent, higher than the figures of 5.87 percent and 6.72 percent recorded in the first quarter of 2024 and the fourth quarter of 2023, respectively.
In the first half of 2024, exports and imports increased by 14 percent and 16.6 percent, respectively, over the same period last year.
Foreign direct investment (FDI) into Viet Nam remains strong, with two consecutive years of record highs.
In the first seven months of this year, the accumulated realized capital of FDI projects reached US$13 billion, with strong investment from countries and territories such as Singapore, China, Hong Kong (China) and Japan.
This positive trend shows the continued confidence of investors and businesses in Viet Nam's competitiveness and potential, Suan commented.
According to Suan, in the long term, Viet Nam's economic growth is supported by positive demographic and macroeconomic trends in long-term. This has helped Viet Nam become a rising economic star of ASEAN.
In term of demographic factor, the country has a growing middle class and the third largest population in ASEAN with about 100 million people, which facilitate Viet Nam in the coming years to encourage more consumer spending as the population continues to grow and become wealthier.
Regarding macroeconomic trends, Viet Nam is successfully transitioning from a low-cost manufacturing economy to a technology-oriented economy with higher added value as well as a strong focus on the service industry, retail and tourism.
Based on these strong long-term fundamental factors, the nation's economic share in ASEAN's total GDP has increased sharply and nearly doubled from less than 6 percent in 2000 to about 12 percent today, told the UOB executive director./.
