Vietnam maintains sustainable growth momentum, continues to be an attractive destination for foreign investors

In the context of the global economy still facing many challenges, Vietnam's economy has shown a strong recovery in the first half of 2024, continuing to affirm its position as an attractive investment destination for international businesses and investors.

At the sharing session before the upcoming regional conference “UOB Gateway to ASEAN” in Ho Chi Minh City on September 6, 2024, Mr. Suan Teck Kin, Head of Global Market and Economic Research, UOB Bank (Singapore) highly appreciated the economic and trade potential of the ASEAN region, in which Vietnam stands out as an important destination in the region with positive prospects in the coming time.

That is also the reason why UOB chose Vietnam as the country to host the Bank's Annual Regional Conference this year after holding it in previous years in Singapore and Indonesia.

Mr. Suan Teck Kin, Head of Global Market and Economic Research, UOB Bank (Singapore).

Fastest growth potential in Southeast Asia

According to the latest data from the General Statistics Office (GSO), Vietnam's real GDP grew by 6.93% year-on-year in the second quarter of 2024. This result not only continued the growth momentum from 5.87% in the first quarter of 2024, but also surpassed the growth of 6.72% in the fourth quarter of 2023 and 4.05% in the same period of 2023. In total, Vietnam's economy grew by 6.42% year-on-year in the first half of 2024, far exceeding the 3.84% in the first half of 2023.

This growth was underpinned by the balanced development of both the manufacturing and service sectors. In the second quarter of 2024, the manufacturing sector continued to grow strongly with an increase of 10.0% over the same period, while the service sector also recorded a growth of 7.1%. This is the 11th consecutive quarter of positive results for the service sector since recovering from the Covid-19 pandemic.

Vietnam’s foreign trade continues to grow in the second quarter of 2024, despite challenges from the Russia-Ukraine conflict and shipping disruptions in the Red Sea. Vietnam’s exports recorded a 10.5% year-on-year increase in June, while imports increased by 13.1% year-on-year. The total trade surplus reached US$11.3 billion in the first half of 2024, nearly equal to the US$12.1 billion surplus for the whole of 2022.

Vietnam stands out as an important destination in ASEAN with positive prospects in the coming time.

“Vietnam’s economic outlook for 2024 remains positive, with GDP growth forecast at 6% and the potential to exceed this. This optimism is based on strong performance in sectors such as manufacturing, electronics, furniture and automotive. Despite some global challenges such as high interest rates and slowing demand in developed markets, Vietnam’s Purchasing Managers’ Index (PMI) stands out as one of the highest in Asia, indicating continued expansion,” said Suan Teck Kin.

Mr. Suan also commented that Vietnam's growth potential is very promising for both 2024 and 2025, especially when compared to the slower growth of 5% in 2023.

Sharing the same opinion with UOB, other prestigious financial institutions such as ADP, WB, IMF also have quite optimistic forecasts about Vietnam's growth this year at 6.0% - 6.5%. If it achieves 6.5% GDP growth this year, Vietnam is likely to become the fastest growing economy in ASEAN.

World investment attraction

Vietnam is a key member of ASEAN and is well positioned to benefit from strong growth in both trade and Foreign Direct Investment (FDI) across the region.

“ASEAN is now the second largest destination for FDI globally, after the United States. FDI inflows to the region are expected to increase by 1.2% in 2023, despite a 2% decline in global FDI. Singapore, Indonesia and Vietnam are the top FDI recipients in the region, with investments mainly coming from the United States, China, Hong Kong and Japan,” Suan said.

Vietnam's growth potential is very promising for both 2024 and 2025.

Thanks to its economic stability, strong resilience, and long-term business support policies, Vietnam is emerging as an attractive investment destination in the ASEAN region.

Actual FDI inflows into Vietnam reached a record high of US$23.2 billion in 2023, surpassing the previous record of US$22.4 billion in 2022. From the beginning of this year to the end of June alone, registered FDI in Vietnam reached US$15.2 billion, up 13.1% over the same period. Singapore, Japan, and Hong Kong were the largest sources of investment capital, with the manufacturing and processing sector attracting the most attention from investors. Realized (or disbursed) FDI inflows into Vietnam from the beginning of the year to June reached US$10.8 billion, more than double the US$4.6 billion in the first quarter of 2024.

This data shows that foreign investors continue to view Vietnam as an important investment destination in the medium and long term. The increase in FDI inflows will further boost domestic activities in the near future, including construction and employment.

In addition, the maintenance of open investment policies and support from the government , combined with the balanced development of the manufacturing and service sectors, have created an optimistic picture for Vietnam's economic prospects. These factors not only help Vietnam maintain its attractiveness to investors but also affirm the country's role as a strategic economic hub in the ASEAN region.

To further share about the growth and investment opportunities in the ASEAN region and especially Vietnam, UOB Bank will organize the annual “Gateway to ASEAN” Conference with the theme “ASEAN: Crossroad to the World” on September 6, at Thisky Hall Sala Convention Center, 5th floor, Grand Skylar, Ho Chi Minh City. The conference is expected to bring together leaders of ministries and sectors in Vietnam, and leading enterprises in the region.

As the Bank with the largest trade network in ASEAN, UOB plays a key role in facilitating sustainable cooperation in the region. Leveraging its extensive regional network and deep local knowledge, UOB is committed to providing comprehensive financial solutions and support to help businesses seize growth opportunities in this dynamic economic region.

Learn more about the event at: events.searix.net/uobgta/

Source: https://baodautu.vn/viet-nam-giu-da-tang-truong-ben-vung-tiep-tuc-la-dem-den-attractive-dan-cho-nha-dau-tu-nuoc-ngoai-d224087.html