Hot economic topics in 2024 in Southeast Asia

In its recent issue, The Diplomat Magazine highlighted three notable economic themes in 2024 in Southeast Asia.

3 chủ đề kinh tế đáng chú ý của ASEAN năm 2024

Clean energy, US-China competition... are notable topics of Southeast Asia in 2024. (Source: Pinterest)

First is the growth of clean energy, as the race to decarbonize many of ASEAN’s largest economies heats up. Indonesia and Vietnam have both announced multi-billion dollar Just Energy Transition Partnerships, while Thailand is working to become a regional hub for electric vehicle (EV) production.

Second is the US-China rivalry. The most obvious example in the ASEAN economy is the Philippines’ “pivot” away from China by cancelling a series of railway projects. This does not necessarily mean a deeper economic relationship with the US, as Japanese development banks and multilateral lenders are leading the way in financing major railway projects in and around Manila.

A similar trend can be seen in defense procurement, with contractors in South Korea, France and elsewhere looking to expand their footprint in Southeast Asia by offering more attractive terms than their US rivals.

The Diplomat commented: "Thus, this is not necessarily a story of the world's two largest economies alone, but rather that ASEAN countries are increasingly seeking to take advantage of opportunities from this geopolitical competition to bring about better development outcomes for themselves."

Third is the rise of economic nationalism in shaping regional trade and investment patterns.

Indonesia is leading the trend in ASEAN with a series of bans on exports of nickel ore, bauxite, titanium and palm oil to force foreign investment into downstream industrialization, while Malaysia has stopped exporting chicken to prevent domestic shortages.

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