An assembly line at Nichirin Vietnam Joint Stock Company, a 100% Japan-invested company in Bac Giang province. (Photo: Danh Lam/VNA)

The report, which includes detailed analysis for China, India, Japan, Indonesia, Vietnam, Malaysia, Thailand and the Philippines, forecasts Vietnam and the Philippines will be the standout performers.

Vietnam has a thriving tech start-up environment and there has been significant public investment in AI. The National Innovation Center supports tech breakthroughs in multiple sectors, while the banking sector is very active in AI testing and application.

Vietnam is a leader in adopting crypto-currency and creating blockchain-based projects. It is estimated to have more than 200 active blockchain projects and has been deploying blockchain technology for a number of functions, including credit guarantees in trade and supply-chain finance. Vietnam will continue to leverage blockchain technology to boost efficiency in the logistics industry with a particular focus on firms in Ho Chi Minh City.

The report said that homegrown businesses that are manufacturing globally competitive products can scale their growth in multiple sectors. A strong labor market with 69% of the population at working age will aid in this growth. In 2024 AI will reshape multiple sectors in Vietnam’s economy and boost focused and productive investment, particularly in agriculture.

Regulatory incentives to encourage a shift to financing the green economy will be key in 2024 and beyond. The continued promotion and scaling of incentives to attract and channel green finance – with the engagement of domestic financial institutions – will spur Vietnam’s energy transition and help build resistance to climate shocks.