Optimistic Outlook for ASEAN economies

South East Asian economies are still registering overall healthy industrial and sectorial growth despite the recent global financial slowdown albeit at a lower level.  The optimistic outlook on the regional economies is evident in the recent announcements by South East Asian governments that spending will be increased to keep the economies moving.

In Vietnam the falling interest rates and a call by the State Bank for all banks to give priority to feasible real-estate projects have resulted in a mini boom for the country’s construction industry as contractors take advantage of falling prices to complete delayed building projects. The Vietnamese real-estate market is expected to pick up pace by the end of next year as contractors make use of opportunities available to them presently.

The call for South East Asia countries to unite and take a bold step towards ensuring that ASEAN economies are protected from the global economies and financial slowdown is further boosted in the signing of three landmark agreements by regional Transport Ministers recently in Manila.

The Multilateral Agreements on Air Services, Air Freight Services and the ASEAN Framework Agreement on the Facilitation of Inter-State Transport signed by the 14th Association of South East Asian Nations (ASEAN) Transport Ministers are expected to lead to the full liberalization of freight and other services in the ASEAN region.

The agreements aimed at providing an efficient and integrated multimodal transport system, are expected to improve competitiveness, boost the tourism sectors and liberate air and marine transport services. With such measures in place, economists are predicting that Asean economies and businesses will be in a much better position to weather the slowdown.

Source:
The New York Times, This time, South East Asia is Not at centre of crisis, 11th November 2008,
Asia Pulse , Asean Transport Ministers Sign Landmark Agreements in Manila, 7th November 2008
Asia Pulse, Vietnamese Building Booms as construction Cost Drop, 10th November 2008