VN projected to be growth outperformer among ASEAN nations

Tuesday, Nov 28, 2017 10:30

Vietnam’s manufacturing sector benefits from multinationals relocating in the country for lower production costs. — VNA Photo

Viet Nam and Myanmar will be the growth outperformers among ASEAN countries in the coming years, Fitch has forecast.

According to a report released by Fitch last Friday, Viet Nam’s growth will be supported by a stable political environment, growing reform momentum, an improving business environment, and with the manufacturing sector benefiting from multinationals relocating in Viet Nam for lower production costs.

Myanmar is also expected to grow 7.2 per cent on average per annum over the next 10 years due to an increase in investment, aided by improvement in the business environment and greater political stability, the report said.

Meanwhile, Singapore and Brunei that already have much higher gross domestic product per capita are likely to see much slower rates of expansion.

According to Fitch, Southeast Asian countries’ economic prospects look bright in the coming years, supported by greater regional integration, better transport connectivity and continued reform momentum.

Citing the Regional Comprehensive Economic Partnership and China’s Belt and Road Initiative as two key factors aside from ASEAN’s Economic Community, Fitch’s BMI Research said these elements will bring the region closer and fuel growth in the future. – VNS

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