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ANALYSIS

HOT ON

THE HEELS

Vietnam is working hard to stay abreast of global
development trends and is well positioned to
move ahead and grow.

JS PARK
Head of International Subsidiary Banking,
Wholesale Banking, HSBC Vietnam

PHOTOS: HSBC VIETNAM
he speed and pace of evolution can towards clean energy becomes an obligation width memory, and high density DRAM
be beyond measure. There are long- and not an option. Disruptive technology on the back of a need for advanced com-
T term tectonic shifts beginning to will be the final driver and have a resound- puting and storage infrastructure such as
emerge and impacting across regions. ing impact across global trends reshaping cloud and servers. Smart farming, for exam-
Based on HSBC Global Research, there the world, from automation to energy ple, addresses the vulnerability of supply
are key drivers of these long-term trends transition and future cities, consumers, chains. HSBC believes that global AgTech
reshaping societies, economies, and mar- and transport. will grow by a compound annual growth
kets, and sending out ripples far and wide. rate (CAGR) of 15-20 per cent to 2030.
Just to pick out a few, demographics is an REGIONAL EFFECT Alibaba, JD, and Tencent already provide
obvious driver, as population trends will Demographic change is unfolding and blockchain services to farmers in Asia.
affect global and regional economies in accelerating, with India set to take over Asian governments are keen to achieve
the decades to come more profoundly China as the most populous nation on their energy transition. Ninety-six per cent
than ever. Working age populations are earth. North Asia is facing sharp declines of the energy capacity added in 2023 in
shrinking and productivity shifts towards in population and a concurrent rise in India was green energy. China’s five major
further automation will present challenges. aging, while ASEAN moves on as a young coal power producers are now the world’s
Additionally, young digital natives and and growing population with a rising largest investors in renewables, and the
others from emerging markets will become urbanization rate and rapidly-growing mid- country has become the dominant player
future consumers. Population change will dle-class. Population declines and aging in the photovoltaic (PV) industry, processing
also dictate the destiny of future cities as societies are prompting the speeding up 90 per cent of wafers, cells, and modules
well as future transport. Climate change of automation for better manufacturing globally. Renewable capacity in ASEAN is
is an emerging trend yet perhaps carries processes. The number of industrial robots expected to double between 2020 and 2025.
the most weight in terms of driving a installed in factories across China outpaced The future consumers will largely be
long-term shift in future trends. This driver the rest of the world combined in 2021. Asian consumers. By 2030, the top 10
digs into changing the fundamentals of Disruptive technology is led by growing largest consumer markets globally will be
the different economies as an energy tran- investment in AI creating demand for high composed of six Asian countries: China,
sition away from hydrocarbon power performance chips, modules, high band- India, Indonesia, Japan, Bangladesh, and

36 | VIETNAM ECONOMIC TIMES | JANUARY 2024 en.vneconomy.vn