HSBC: Vietnam returns as ASEAN's growth star

HSBC believes that Vietnam's economy will continue to recover throughout 2024, with economic growth reaching 6.9% and 7.4% in the second and third quarters, raising the growth forecast for the whole year of 2024 from 6.5% to 7%.

Pangasius processing line for export at Sao Mai Group's factory. (Photo: Vu Sinh/VNA)

Vietnam has returned to being the “growth star” of the Association of Southeast Asian Nations (ASEAN). This is the assessment of HSBC bank when assessing Vietnam’s economic development over the past year.

According to HSBC's assessment, after a challenging first quarter, Vietnam's economic outlook is gradually becoming more positive as it continues to recover throughout 2024, according to fibre2fashion.com.

Specifically, economic growth rates unexpectedly rose to 6.9% and 7.4% in the second and third quarters, respectively, raising the 2024 full-year growth forecast from 6.5% to 7%.

HSBC maintains its 2025 growth forecast at 6.5%.

HSBC noted that the economic recovery is not limited to the consumer electronics industry but is spreading to many other sectors. Domestic consumption is gradually improving.

Manufacturing and trade continue to lead the recovery trend, although concerns remain that the impact of Typhoon Yagi will affect growth.

Vietnam continues to attract foreign direct investment (FDI) thanks to its generally positive outlook.

Although the growth rate of newly registered FDI slowed down in the third quarter, non-manufacturing sectors (such as real estate and energy) still attracted additional investment.

HSBC said investors remain committed to supporting Vietnam in expanding its manufacturing capacity. A total of $21.68 billion has been disbursed in 2024, up 7.1% from the same period in 2023.

This is the third consecutive year that Vietnam’s disbursed FDI capital has exceeded 20 billion USD. Intra-ASEAN investments are leading the way, accounting for 40% of capital flows into Vietnam so far./.

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