SEA to see up to 5% yearly growth through 2032, Vietnam to lead the charge: report

Despite recessionary headwinds, Southeast Asian economies are set to grow at a rate of 4% to 5% annually over the next 10 years, according to a report from Bain & Company and Angsana Council – the nonprofit arm of Monk’s Hill Ventures. The firms announced the release of the report today, entitled “Southeast Asia’s Pursuit of the Emerging Markets Growth: How four factors could propel Southeast Asia to improved growth.”

Vietnam is seen to lead the region’s push, expected to log 5% to 7% in yearly growth.

According to the report, tech-enabled disruptors (TEDs) have been the greatest catalyst of progress in the region, impacting six of the seven traditional growth drivers: enabling healthy competition, strengthening e-government, improving infrastructure, promoting business creation, raising investment, as well as improving education and productivity levels.

The report noted that TEDs push traditional companies to accelerate innovation or risk irrelevance over the coming decade.

The findings also revealed that some economists have glossed over sources of additional growth, such as the impact of tech-enabled entrepreneurs on investment, productivity, and economic inclusion, as well as the effect of Southeast Asia’s trading relationship with China.

Photo credit: Bain & Company

It added that the working- and middle-class populations in Southeast Asia are also growing at a sustainable rate, which can enable a surge in the region’s consumer market.

“We remain optimistic about Southeast Asia’s continued growth in the face of global instability and that it maintains the possibility of out-growing other emerging regions in the world over the next decade,” Charles Ormiston, founding partner at Bain & Company SEA, said in a statement.

See also: Recession Run: Valuation cuts don’t affect Monk’s Hill Ventures’ plans