The COVID-19 pandemic in 2020 has caused a severe impact on the emerging Southeast Asian countries.
While some countries are starting to recover in the first quarter of 2021, uncertainties regarding economic outlook are still remarkably high and reliant on each countries' abilities to retain the spread of COVID-19 new variants while hand-in-hand stays accommodative through policy supports.
The average ASEAN countries' real GDP growth in 2021 expects to reach 5.1% following a contraction averaging at 3.4% in 2020.
However, the growth outlook greatly depends on a wide array of factors such as the length and implementation of restrictions and lockdowns, economic structures, and the government's capacity to support households and businesses while managing the spread of the virus, to name a few.
Looking back at 2020, Vietnam shows the strongest agility among neighboring countries, with a 2.6 percent GDP growth rate last year despite the global financial crisis.
To add matters in hand, Vietnam expects to lead again in 2021 due to the lingering volatility in the market.
In comparison, the Philippines and Cambodia project to experience significant contraction following the negative growth of -9 and -2.9%.
With most of the countries' major revenue streams coming from tourism and exports, Southeast Asian nations face risks of repeating recessions, job losses, and weakening consumer spending.
However, Singapore has led in building a herding community by fully vaccinating over 36 percent of its population.
Today, over 50 percent of Singapore's population have received their first dose of vaccine, well on its track to fully vaccinating all of its people by August 2021.
Unfortunately, the country's approach to robust vaccination cannot be a benchmark for larger countries with more complex demographic dispersion, such as Indonesia.
Southeast Asian countries have recognized the opportunity of how digitization might benefit the economy as a whole.
As a result, governments across the region are endorsing initiatives to establish telemedicine services and maximize the usage of digital health during the pandemic.
The COVID-19 pandemic provides a critical impetus for the fourth industrial revolution among uncertainties and weakening economic activities.
Accordingly, countries are taking decisive steps to support the acceleration of digitization to respond to the urgent public demand.
As a result, E-commerce and e-payment transactions obtained a double-digit growth throughout the year due to physical distancing and lockdowns: E-commerce penetration in the Southeast Asian countries has increased to nearly 44% at the end of 2020.
Market Research Southeast Asia assists industry players in identifying sustainable growth strategies within SEA's multitude of industries, providing a grip of understanding the opportunities and potentials beyond the surface level.
Our engagements usually range from market entry strategies, competitive benchmarking, channel model identification, market assessments, M&A, and partner due diligence--without limiting one from the other.
With substantial experience in market research, we help our clients enter and thrive in the dynamic Southeast Asian market by leveraging an in-depth understanding of the market's characteristics, allowing us to provide a one-of-a-kind perspective and insights that are essential to your needs.
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