Experts optimistic about Vietnam’s economic outlook in 2024: British journal

The UK’s magazine The Banker has run an article highlighting optimistic opinions of experts on Vietnam’s economic outlook in 2024.

Experts optimistic about Vietnam’s economic outlook in 2024: British journal hinh anh 1

Loading containers at Cai Mep port in Ba Ria-Vung Tau province (Photo: VNA)

The UK’s magazine The Banker has run an article highlighting optimistic opinions of experts on Vietnam’s economic outlook in 2024.

Vietnam saw gross domestic product growth of 5.1% in 2023, which is forecast to rise 6–6.5% in 2024, making Vietnam one of the strongest growth environments in Southeast Asia, the article noted.

The article quoted Khanh Vu, Deputy Managing Director at VinaCapital Fund Management as saying that the pick-up in GDP growth will be driven by rising exports and manufacturing, tourism, and a modest recovery in domestic consumption and consumer sentiment. Economic growth has also been supported by a favourable interest rate environment, he added.

Helmi Arman, economist at Citi, a US-based financial service company, said that after a freeze in early 2023, activity in the real estate sector has picked up in the second half of the year. The government is pushing through structural reforms that lay the foundation for a more sustainable recovery in the real estate sector.

The article underlined that for international investors, Vietnam’s manufacturing sector remains the most appealing, specifically in the smartphone supply chain and for consumer electronics. For domestic investors, garment, footwear, and furniture exports are gaining the most interest.

Both Vu and Kenglin Tan, senior portfolio manager, equities at Manulife Investment Management, showed optimism about Vietnam’s export prospects thanks to signs of stabilisation.

There was some trepidation that Vietnam’s decision to implement the global minimum tax rate would impact investment flows, but this has not transpired, Tan said, adding that from a foreign investor perspective, whether they invest in Vietnam or other countries in the agreement like Mexico or Thailand, they are impacted by the same policy. It can be seen from FDI flows in December 2023 after the policy was announced, that investors have not been deterred at all, she underscored.

There has also been a surge in interest in the FDI space. Vu noted that the Republic of Korea has pledged its support in investing in Vietnam, stating plans to exceed 100 billion USD in total investment by 2025. To date, the country has invested 84 billion USD into Vietnam. The focus is on manufacturing, with 62 billion USD invested into more than 4,600 projects, with large manufacturers including Samsung, LG and SK. A major project benefiting from FDI support is Long Thanh International Airport, being constructed close to Ho Chi Minh City, the expert stated, underlining that FDI support for the project has come from the US, Japan, France, Turkey, and the Netherlands.

To further extend the potential for international investment, Vietnam is opening up its stock market settlements by allowing domestic brokers to vouch for foreign investors, enabling them to purchase shares. Arman says allowing greater levels of foreign ownership could mitigate against future shocks.

In the field of tourism, the experts noted that the sector is at 70% of pre-COVID-19 levels, but domestic tourism is booming. Chinese tourists were 30% of their pre-COVID-19 levels last year.

The article cited a report from data company Vietnam Report JSC finding 66% of respondents in the tourism and hotel sector expressing confidence for 2024. Of the respondents, 93% stated the new visa rules would be a lever for the country’s tourism growth trajectory, according to the report./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Forum boosts economic ties among ASEAN, emerging economies, Russia

Forum boosts economic ties among ASEAN, emerging economies, Russia

An economic cooperation forum on fostering ties between ASEAN and emerging economies, and Russia convened in Hanoi on April 12.
Sustainable production a prerequisite for international economic integration

Sustainable production a prerequisite for international economic integration

This business workshop brought together members of key government, business and investment communities for peer-to-peer sharing of the most updated legal regulation on emission reduction, corporate experiences towards net zero, and to discuss concrete opportunities for enabling green transformation in Việt Nam.
Peacekeepers help promote Vietnam’s image

Peacekeepers help promote Vietnam’s image

Vietnamese peacekeeping forces are developing strongly, contributing to affirming Vietnam’s role in the world arena and demonstrating Vietnam’s efforts and commitments to joining UN peacekeeping operations and building global peace and security.
ADB maintains 6% growth forecast for Vietnam"s economy

ADB maintains 6% growth forecast for Vietnam"s economy

The Asian Development Bank (ADB) has maintained its earlier growth projection for Vietnam this year despite lingering uncertainties in the external environment. Vietnam’s economy is expected to grow at 6.0% and 6.2% in 2024 and 2025, respectively, heard a conference held in Hanoi on April 11.

More News

Vietnam among world"s top 10 countries for pork consumption

Vietnam among world"s top 10 countries for pork consumption

Vietnam is now one of the world's top 10 countries for pork consumption, latest statistics have revealed.
EuroCham: Vietnam"s economic growth boosts European businesses’ confidence

EuroCham: Vietnam"s economic growth boosts European businesses’ confidence

The European Chamber of Commerce Vietnam (EuroCham) on April 8 released the Business Confidence Index (BCI) for the first quarter of 2024, saying that the index reached 52.8 points - the highest level since 2022.
Vietnam, Laos sign new trade agreement

Vietnam, Laos sign new trade agreement

Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Industry and Commerce Malaithong Kommasith signed a new Vietnam-Laos trade agreement following their talks in Vientiane, Laos, on April 8.
NA Chairman meets with Chinese top leader in Beijing

NA Chairman meets with Chinese top leader in Beijing

National Assembly (NA) Chairman Vuong Dinh Hue had a meeting with General Secretary of the Communist Party of China (CPC) Central Committee and Chinese President Xi Jinping in Beijing on April 8 as part of his ongoing official visit to China.
NA Chairman meets Vietnamese community in China

NA Chairman meets Vietnamese community in China

National Assembly (NA) Chairman Vuong Dinh Hue visited the Vietnamese Embassy and met representatives of the Vietnamese community in China right after he arrived in Beijing for an official visit to the country on April 7 afternoon.
Many export product groups are at risk of being investigated and subject to trade defense measures

Many export product groups are at risk of being investigated and subject to trade defense measures

VCN - Many groups of goods such as wood, iron and steel, construction materials, manufactured industrial products exported to the US, EU... are at risk of being investigated, subject to trade defense measures, and evading defense measures. commerce.
NA Chairman arrives in Beijing for official visit

NA Chairman arrives in Beijing for official visit

Chairman of the National Assembly (NA) Vuong Dinh Hue and a high-ranking delegation of Vietnam arrived in Beijing on April 7 afternoon, beginning a six-day official visit to China.
Vietnam ranked 6th among fastest growing Asian economies in 2024

Vietnam ranked 6th among fastest growing Asian economies in 2024

The US website finance.yahoo.com placed Vietnam 6th among the fastest growing economies in Asia in 2024 in its article published on April 4.
Vietnam boasts great potential for developing data centres

Vietnam boasts great potential for developing data centres

Data centres are expected to play a crucial role in supporting Vietnam's digital transformation, so despite the fact that the centre are in the nascent stage, many foreign investors anticipate effective investment-attraction policies soon to meet demand.
Read More

Your care

Latest Most read
Forum boosts economic ties among ASEAN, emerging economies, Russia

Forum boosts economic ties among ASEAN, emerging economies, Russia

An economic cooperation forum on fostering ties between ASEAN and emerging economies, and Russia convened in Hanoi on April 12.
Sustainable production a prerequisite for international economic integration

Sustainable production a prerequisite for international economic integration

This business workshop brought together members of key government, business and investment communities for peer-to-peer sharing of the most updated legal regulation on emission reduction, corporate experiences towards net zero, and to discuss concrete opportunities for enabling green transformation in Việt Nam.
Peacekeepers help promote Vietnam’s image

Peacekeepers help promote Vietnam’s image

Vietnamese peacekeeping forces are developing strongly, contributing to affirming Vietnam’s role in the world arena and demonstrating Vietnam’s efforts and commitments to joining UN peacekeeping operations and building global peace and security.
ADB maintains 6% growth forecast for Vietnam"s economy

ADB maintains 6% growth forecast for Vietnam"s economy

The Asian Development Bank (ADB) has maintained its earlier growth projection for Vietnam this year despite lingering uncertainties in the external environment. Vietnam’s economy is expected to grow at 6.0% and 6.2% in 2024 and 2025, respectively, heard a conference held in Hanoi on April 11.
Vietnam among world"s top 10 countries for pork consumption

Vietnam among world"s top 10 countries for pork consumption

Vietnam is now one of the world's top 10 countries for pork consumption, latest statistics have revealed.
Mobile Version