Hanoi (VNA) - Vietnam is driving growth among ASEAN’s “Fabulous Five” economies, along with Malaysia, Indonesia, Thailand, and the Philippines – thanks to its robust manufacturing, expanding workforce, and rising consumer incomes, according to Shan Saeed, chief economist at Asian proptech group Juwai IQI in Malaysia.
In an interview with Vietnam News Agency reporters, Saeed said the economic performance of the five countries in the second quarter of 2026 was noteworthy, with Vietnam’s economy growing 8.39% year-on-year, bringing first-half growth to 8.18%.
The country entered the second half of the year with particularly strong momentum, he noted.
More importantly, Saeed said, the quality of Vietnam’s growth is significant. Manufacturing, a backbone of the country’s export structure, expanded 10.23% in the first half, while industrial production rose 10.8%. Goods exports reached 266.5 billion USD, up 21%, while disbursed foreign direct investment increased 11.2% to 13 billion USD.
These figures indicate that Vietnam’s growth story is moving beyond low-cost manufacturing, with the country advancing in electronics, machinery, high-tech manufacturing, and higher-value supply chains, he said.
Tourism is also becoming another structural growth driver, he said, noting that Vietnam welcomed 12.3 million international visitors in the first six months of 2026, up 14.9% year-on-year, supporting growth in services, aviation, hospitality and domestic consumption.
Saeed said human resources are another important strength of Vietnam. He highlighted improvements in the quality of Vietnam’s workforce, noting that 29.7% of workers had degrees or certificates in the first half of this year.
He also pointed to the 2022 Programme for International Student Assessment results hosted by the Organisation for Economic Cooperation and Development (OECD), in which Vietnamese female students scored 18 points higher than male students in reading, while mathematics performance was relatively balanced.
According to the expert, income growth is further expanding Vietnam’s middle-income consumer base. Vietnam’s official data showed per-capita GDP rising from 4,700 USD in 2024 to 5,026 USD in 2025.
Saeed said that thanks to its strengths in manufacturing momentum, human capital, and income convergence, Vietnam is not just joining; it is helping shape ASEAN’s next growth cycle./.
VNA
