In the report, the bank has also lowered Vietnam’s 2023 GDP growth to 5.0% year on year from the previous 5.4%. The revised forecast would require the 4th quarter growth of 7.0% which may still be challenging.
According to the report, macro indicator shows a tentative improvement and trade has yet to signal a clear manufacturing rebound. However, domestic recovery continues and is likely to strengthen further, with robust retail sales.
Construction, accommodation sectors maintain strong growth year to date; manufacturing has started to expand. External outlook is improving with the current account surplus rising to 3.5% of GDP in 2024 from 2.0% in 2023.
Tim Leelahapan, Economist of Thailand and Vietnam at the Standard Chartered, said that, the medium-term outlook remains promising given Vietnam’s economic openness and stability. To reinvigorate FDI inflows, Vietnam needs to resume rapid GDP growth and develop its infrastructure, he suggested.
Earlier, the United Overseas Bank (UOB) has also cut the full-year growth forecast for Vietnam to 5% from the earlier 5.2%./.
