Vietnam returns as growth star in ASEAN

This is the assessment of Vietnam's economic development situation as reported by international media in October 2024.

HSBC Bank affirms that Vietnam is back to being the growth star in ASEAN. Photo: Chinhphu.vn

Over the past month, Moody's and Fitch rated Vietnam at Ba2 and BB+, respectively, indicating that the world continues to pay attention to Vietnam's stability. Reputable international economic organizations have optimistic forecasts for Vietnam's GDP growth, with the International Monetary Fund predicting that Vietnam's economic growth will recover to 6.1% in 2024 thanks to continued strong external demand, flexible foreign direct investment and supportive policies. The Asian Development Bank forecasts that Vietnam's economic growth will remain unchanged at 6% in 2024. United Overseas Bank - UOB (Singapore) raised its forecast for Vietnam's full-year growth by 0.5 percentage points to 6.4%. HSBC Bank has released an updated economic forecast titled “Vietnam Overview: Within Reach”, thereby increasing Vietnam’s GDP growth forecast for 2024 to 7% and maintaining the forecast for 2025 at 6.5%. HSBC Bank affirmed that Vietnam is back to being a growth star in ASEAN. Vietnam will continue to attract FDI thanks to its positive fundamental outlook, especially noting the possibility of capital flows into the manufacturing sector stabilizing in the future after the working trip to the US by General Secretary and President To Lam attracted the attention of a number of companies. Standard Chartered Bank commented on October 18, raising Vietnam’s GDP growth forecast for 2024 to 6.8%. 2025 is still at 6.7%, with expected growth of 7.5% in the first half of the year and 6.1% in the second half of the year compared to the same period in 2024. According to Standard Chartered experts, Vietnam's economic growth momentum is currently relatively strong thanks to improvements in many areas such as import and export, retail, real estate, tourism, and manufacturing. In addition, Vietnam tops the list of 10 countries with the fastest improving business environment. The Economist Intelligence Unit - EIU 6 (UK) ranked Vietnam at the top of the list of 10 countries with the fastest improving business environment in the past 20 years, continuing to affirm its position as an attractive destination for international investors. According to EIU, this remarkable progress is thanks to Vietnam: Introducing a free trade policy, reducing operating costs for foreign companies and investing heavily in human and physical capital; Benefiting greatly from the China+1 policy; Strengthening relations with Western countries, positively impacting economic relations with important export markets such as the US and the European Union. EIU forecasts that in the next 5 years, Vietnam's economic environment is likely to improve compared to competitors such as Indonesia and Thailand thanks to free trade agreements, low wages and large market opportunities. Source: https://laodong.vn/the-gioi/viet-nam-tro-lai-la-ngoi-sao-tang-truong-trong-asean-1415331.ldo