Typhoon Yagi hits northern Vietnam hard; Thailand needs quick economy remedy

This week in Asean: 

• Malaysia: 99 Speed Mart shines in the country’s biggest IPO in 7 years
• Thailand: Household debt hits record high at 90.8 per cent of GDP
• Vietnam: VNG appoints new acting general manager after police raid
• Indonesia: Government efforts to retire coal-fired power plants encounter resistance

Dear BT reader,

This week, northern Vietnam was severely impacted by Typhoon Yagi, Asia’s most powerful storm this year, with the death toll rising to at least 179 people after it tore through China’s island of Hainan and the Philippines.

In Hanoi, the Red River reached its highest water level in 20 years, flooding streets and forcing thousands of nearby residents to evacuate. Travel agencies have halted operations, and there is no clear timeline for recovery. Read our Vietnam correspondent Jamille Tran’s story to find out more.

The recent disaster has not diminished Vietnam’s appeal to foreign investors. In response, several private equity firms in the country have established the Vietnam Private Capital Agency, aiming to facilitate US$35 billion of investment into Vietnam over the next decade.

While the target is higher than previous years’ annual investments, market observers remain optimistic that Vietnam will continue to attract foreign investment as global companies consider relocating their operations amid US-China tensions.

This trend is particularly evident in the South-east Asia data centre industry, where Malaysia, Indonesia, Singapore, Vietnam and Thailand are leading a boom. However, despite the influx of billions in investments, the strain on power grids and water supplies is raising concerns for governments.

Each country is developing its own solutions for sustainable development, including renewable energy initiatives. Read this piece – a collaborative effort by several BT journalists – to find out what the various nations are doing.

In Thailand, consumer confidence fell for the sixth consecutive month in August, reaching a 13-month low due to worries about sluggish economic growth, record-high household debts, and rising living costs amid uncertainty over new government policies.

To stimulate the economy, the Thai government proposed accelerating the rollout of a 145 billion baht “digital wallet” programme, which was initially scheduled for the last quarter of the year, to address urgent economic needs.

This measure is seen as a cornerstone of Thailand’s strategy to revitalise its economy, which grew by only 2.3 per cent in the second quarter.

I hope you have enjoyed this week’s reads. Be sure to explore more stories in the sections below, and see you next Friday!

Trending

What’s going on? Norwegian energy company Equinor has scrapped its offshore wind plans in Vietnam due to growing regulatory and economic uncertainties. Why it matters: Despite the country’s vast offshore wind potential, the absence of a comprehensive legal framework has caused several investors to withdraw from their deals, reports our Vietnam correspondent Jamille Tran. 

Asean in brief

• Joko Widodo’s decade in power: Infrastructure, economic and welfare gains amid governance hurdles From furniture salesman to the most powerful man in Indonesia, Joko Widodo’s leadership spurred reforms, enhancing Indonesia’s connectivity and income, yet faced significant institutional challenges, writes our Indonesia correspondent Elisa Valenta. Read more
• Home-improvement chain Mr DIY’s Indonesian unit is said to eye IPO in late 2024 Sources said the company is looking at raising as much as US$300 million. Read more
• Thai headline inflation slows in August, well below central bank target Government officials expect inflation to pick up in September, driven by rising diesel and food prices. Read more
• Malaysia’s EV race accelerates as Proton moves up launch in booming market Analysts expect national carmakers’ affordable models to boost the country’s EV sales. Read more
• Malaysia central banker sees rate hold in 2024, growth at 5% A resilient economy and contained price pressures support the decision, but next year’s rate path is “less clear”. Read more
• Thai electric vehicle sales set to miss target as banks tighten car loans The cut in sales forecast is bad news for Chinese makers, which have just started producing locally made cars this year. Read more
• Top Malaysia coffee chain gets funding from buyout firm KV Asia The group of investors include buyout firm KV Asia Capital and Malaysia’s largest state pension fund Retirement Fund (Incorporated) and Indonesia’s Kapal Api Group. Read more
• Asean aims to conclude Digital Economy Framework in 2025, attract FDI as bloc While member nations are in intense competition for foreign direct investments, collaboration is essential, says the Malaysian minister. Read more