The forecast is highlighted in the bank’s global research report on Vietnam, which was recently published with the title “Vietnam – stronger but not easier”.
The report cited Tim Leelahaphan, Economist for Thailand and Vietnam, Standard Chartered, as saying that, Vietnam continues to offer a promising medium-term outlook.
To maintain rapid growth and competitiveness, the country needs to upgrade infrastructure and prepare to lower carbon emissions, he suggested.
According to the economist, retail sales and industrial production have stayed robust despite the recent moderation. Exports and imports are starting to recover, though electronics-related trade remains tentative.
Given re-emerging inflation concerns, inflation is anticipated to pick up to 5.5% in 2024 from 3.3% in 2023. The Vietnamese dong continues to face headwinds, with a mild VND appreciation, targeting 24,000 by end-2024. Forex reserves are forecasted to be rebuilt when US dollar strength abates, the Standard Chartered economist noted./.
