Vietnam's 2024 GDP growth forecast at 6.7%: Standard Chartered Bank

11 Jan '24

1 min read

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Insights

The Standard Chartered Bank expects 6.7 per cent GDP growth for Vietnam in 2024.
Retail sales and industrial production have stayed robust despite recent moderation, it noted.
The country continues to offer a promising medium-term outlook and needs to upgrade infrastructure and manufacturing capacity, prepare to lower carbon emissions and raise self-reliance.

The Standard Chartered Bank continues to expect a robust 6.7 per cent gross domestic product (GDP) growth for Vietnam this year, with a growth rate of 6.2 per cent in the first half and 6.9 per cent in the second.

The country’s retail sales and industrial production have stayed robust despite recent moderation, the bank noted in its report titled ‘Vietnam—Stronger but not easier’.

Exports and imports are starting to recover, though electronics-related trade remains tentative. The manufacturing sector stands to benefit from shifting global supply chains, with multiple free-trade agreements.

Vietnam has a favourable investment environment relative to neighboring markets, including clear demographic advantages and low labour costs, the report noted.

Bank economist Tim Leelahaphan noted that the country continues to offer a promising medium-term outlook and needs to upgrade infrastructure and manufacturing capacity, prepare to lower carbon emissions and raise self-reliance, Vietnamese media outlets reported.

The State Bank of Vietnam should strike a delicate policy balance between supporting the economic recovery, and combating rising inflation and currency weakness, he recommended.

Fibre2Fashion News Desk (DS)