Vietnam projected to lead Southeast Asian economic growth through 2035

A joint report by Bain & Company, DBS Bank, and Vriens & Partners forecasts that the six largest Southeast Asian economies will achieve an average annual growth rate of 4.8% between 2026 and 2035.

Vietnam is projected to lead this group with the highest growth rate at 6.2% per year. Other forecasted annual growth rates include the Philippines at 5.8%, Indonesia at 5.4%, Malaysia at 4.3%, Singapore at 2.7%, and Thailand at 2.2%.

Growth drivers across the region include foreign direct investment, industrialization, infrastructure development, and productivity gains from new technologies. While Vietnam, Malaysia, and Singapore are expected to benefit from favorable economic environments, Indonesia, the Philippines, and Thailand may face higher risks of economic shocks due to institutional or implementation constraints.

Singapore remains the most resilient economy in the group, supported by deep financial markets and strong public finances. The report also notes that Singapore attracts over 60% of the region's total foreign direct investment, particularly in advanced manufacturing and medical technology.