International Business Review


Four ASEAN Countries to Enter Asia’s Trillionaire Club
Southeast Asia is expected to be one of the world’s fastest growing regions

14 April 2016
By 2030, four countries from Southeast Asia are expected to join their Asian counterparts in the list of nations with GDPs exceeding US1 trillion. According to Rajiv Biswas, Asia Pacific Chief Economist for international information and analysis company IHS, "This will help to increase the geopolitical and economic importance of ASEAN as a political and economic grouping in international diplomacy and the global dialogue on trade, investment and international standards-setting."
The growth-leading countries in the region are Indonesia, Vietnam, Philippines, Myanmar, Malaysia and Thailand. The largest economy in Southeast Asia, the Indonesian GDP is projected to grow 5% over four years between 2016 and 2020 "supported by strong growth in consumer demand and infrastructure investment," and exceed US3.7 trillion by 2030. Vietnam's GDP is projected to record a 6.5% growth annually over the medium term, particularly in the country's rapidly developing manufacturing and exports of electronics and garments. In addition, the planned Trans-Pacific Partnership Agreement (TPPA) and EU-Vietnam Free Trade Agreement will significantly reduce tariff barriers and enhance Vietnam's market access to the EU and US.
The Malaysian economy is expected to continue to shift towards higher value-added manufacturing and services, and is projected to achieve a US$20,000 per capita GDP by 2025 with its GDP exceeding US$1 trillion by 2030. In the Philippines, GDP growth is forecast to be 5.8% between 2016 and 2018. Biswas notes that "The total size of the Philippines’s economy is projected to grow from $300 billion in 2016 to $700 billion by 2025, and a $1 trillion economy by 2030."

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