The economic outlook for Vietnam in 2024 and beyond is anticipated to be promising despite global trade slowdowns and uncertainty. While we see some short-term positivity grounded in economic indicators and recovery trends, policymakers and businesses have to make strategic decisions towards the long-term trajectory. Megatrends such as AI, energy transition and climate change will be increasingly important when reinventing their strategies.
With 30 years of operating in Vietnam, PwC has witnessed the country's remarkable journey towards recovery and growth, highlighting its adaptability, resilience, and commitment to a sustainable future. We’re thrilled to work with the government and businesses throughout this transformative era.
1 The reinvention imperative
CEOs most optimistic about the global economy growth were in the Philippines (57%), Taiwan (49%) and New Zealand (48%). These territories have differentiated and safeguarded local industries, such as Taiwan’s semiconductor capability and New Zealand’s commitment to agriculture and renewables.
Conversely, Australia, South Korea and India exhibit the most pessimism, with only 20-30% of CEOs foreseeing global economic growth. These larger economies face heightened exposure to global challenges due to geographical, political and industry factors, given their importance to global supply chains.
2 Looming existential change
Climate change and technological disruption, particularly GenAI, are pressuring Asia Pacific CEOs to reinvent their businesses.
While progress has been made in decarbonisation, about one in five CEOs are not pursuing other climate-related actions beyond decarbonisation. Barriers to decarbonisation include regulatory complexity, lower returns on climate-friendly investments, and a lack of sector-specific technologies. However, CEOs have shown a willingness to accept lower returns for climate-friendly investments.
In terms of GenAI, CEOs anticipate significant impacts within the next three years, but adoption rates vary. There is optimism about the efficiency and revenue-enhancing potential of GenAI, but concerns exist regarding job displacement and cybersecurity risks. Skills training is crucial to ensure job security and maximize the benefits of AI.
3 A reinvention pathway
Four key actions CEOs should take
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Contact us if you would like more information
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Johnathan Ooi Siew Loke
Partner, Deals and Consulting Services Leader, PwC Vietnam
Tel: +84 28 3823 0796