Southeast Asia to overtake China in gross domestic product (GDP) and foreign direct investment (FDI) over the next 10 years, according to the “Navigating High Winds: Southeast Asia Outlook 2024 – 34” report released on Thursday (August 1st) by the Angsana Council, Bain & Company, and DBS Bank.
The region’s top six economies – Vietnam, the Philippines, Indonesia, Malaysia, Thailand, and Singapore – are projected to grow at an average annual rate of 5.1%, outperforming China.
A key factor driving this surge is a significant increase in FDI. For the first time in a decade, Southeast Asia attracted more FDI than China in 2023. Southeast Asia’s FDI amounted to US$206 billion while China received $43 billion. This represents a 37% growth in FDI for Southeast Asia between 2018 and 2022, compared to China’s 10%.
“Southeast Asia is experiencing a transformative shift,” said Charles Ormiston, Advisory Partner at Bain & Company and Chair of the Angsana Council. “Strong domestic growth coupled with the region’s strategic location has made it an increasingly attractive destination for global investors.”
Vietnam is leading the region’s growth, followed closely by the Philippines and Indonesia. Vietnam and the Philippines are expected to exceed 6% growth, with Indonesia close behind at 5.7%. Malaysia follows at 4.5%, while Thailand and Singapore are projected to grow at 2.8% and 2.5%, respectively.
Source: The Nation
