At the seminar (Source: VNA)Hanoi (VNA) – Economies in the ASEAN+3 region should enhancetheir connectivity, boost the service sector and develop skilled humanresources in order to meet the world’s demands, heard a seminar in Hanoi on May25.
The seminar, themed “ASEAN+3 regional economic outlook: resilience andgrowth in a changing world” was jointly held by the Vietnamese Ministry ofFinance and the ASEAN+3 Macroeconomic Research Office (AMRO).
The ASEAN+3 comprises ten member countries of the Association ofSoutheast Asian Nations (ASEAN), and China, Japan and the Republic of Korea(RoK). ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, thePhilippines, Singapore, Thailand and Vietnam.
Hoe Eo Khor, chief economist of AMRO, presented a report on the ASEAN+3regional economic outlook conducted by his office.
According to the report, with improving external demand, the region’s growth is expected to be maintained at5.4 percent in 2018 and 5.2 percent in 2019. Vietnam’s GDP in the first quarterof this year is projected at 7.4 percent.
However, the report warned the region toremain vigilant given the significant external risks in the near term of afaster-than-expected tightening in global financial conditions and anescalation of global trade tensions.
If these risks are realised, there wouldbe spillovers to the region through capital outflows, higher borrowing costs,and lower trade and investment flows, the report said.
To enhance resilience, the report saidpolicymakers in the region should continue to build policy space, particularlyin monetary policy, in anticipation of tighter global financial conditionsahead.
Fiscal policy may have to play a greaterrole in supporting growth while macro-prudential policy can help safeguardfinancial stability, the report said.
Nguyen Duc Thanh, Director of the VietnamInstitute for Economic and Policy Research (VEPR) said through the report,Vietnam gets an insight into ASEAN and the Northeast Asian countries - China,Japan and the RoK.
Delegates at the seminar held thatregional economies have benefited from foreign direct investment (FDI)activities which look towards exports.
Along with China and other major ASEANeconomies, Vietnam has succeeded in attracting FDI, setting up competitive productionareas, generating jobs, increasing productivity and spurring exports, they said.
They also pointed out challenges caused bytrade protectionism, changes in the global value chains and new trends oftechnologies and production.
Against the backdrop, the economies shouldintensify regional connectivity and integration to consolidate sustainablegrowth against external shocks, they suggested.-VNA
VNA
