CLMV countries to grow stronger this year: Thai bank

Illustrative image (Photo: asean.org)

Bangkok (VNA) – The Economic Intelligence Centre of the SiamCommercial Bank forecasts the CLMV countries, namely Cambodia, Laos, Myanmar andVietnam, will gain a stronger growth momentum in 2023, but remain below itsgrowth potential prior to the COVID-19 outbreaks.

The rebound will be uneven across countries, depending oneconomic fundamentals and country-specific risks, the centre said in itsFebruary 1 report.

SCB EIC expects that the Cambodian economy will grow 5.5% thisyear, 3.0% in Laos and Myanmar, and 6.2% in Vietnam.

According to the report, domestic demand and tourism will bekey drivers for CLMV economic recovery in 2023.

Domestic demand will gain support from improvements in thelabour market, as seen in Vietnam’s Q4/22 employment soaring to its highestlevel since the COVID-19 outbreaks. Meanwhile, the service sector will benefitfrom rising tourist arrivals this year, particularly Chinese visitors who madeup about 30-35% of total foreign tourists in 2019.

China has authorised outbound group tours traveling toCambodia and Laos starting from February 6, 2023, and is expected to add moredestinations to the list soon. In particular, Cambodia and Vietnam are poisedto benefit the most from tourism rebound, considering the high contribution oftourism (both domestic and foreign) to GDP at 18.2% and 9.8%, respectively./.

VNA