Vietnam's 2024 GDP growth forecast raised to 7 per cent

HSBC has raised Vietnam's GDP growth forecast to 7 per cent for 2024. Photo: baodautu.vn

There have been concerns that the impact of Typhoon Yagi, the strongest storm Vietnam faced in 70 years, would weigh on growth. The northern provinces were hit particularly hard in early September, with damages estimated at over $3 billion.

However, the impact has been primarily concentrated in the agriculture, forestry and fishery sectors. Manufacturing and trade have remained resilient and continue to lead the recovery, while the domestic sector has remained relatively muted despite seeing incremental improvements.

On the back of base effects and more favourable price developments vis-à-vis commodity prices and currency moves, inflation has shown notable moderation recently.

Vietnam has continued to attract foreign investment as fundamental prospects remain positive. Although growth in newly registered funding from abroad moderated in the third quarter, with sectors beyond manufacturing such as real estate and energy seeing increases.

Looking ahead, manufacturing inflows are also likely to remain resilient, with Party General Secretary, State President To Lam’s recent visit to the United States yielding investment intentions from various groups such as Meta. Continued efforts to deepen ties with international partners will also act as a tailwind for further investment inflows, with Vietnam recently upgrading relations with France to a comprehensive strategic partnership.

Given the better-than-expected growth results in the third quarter, HSBC raises its 2024 GDP forecast to 7 per cent, expecting the recovery to strengthen and broaden out across sectors in the coming quarters. This is the highest growth forecast an international financial organisation has given to Vietnam's economy this year.

IMF predicts Vietnam's economic growth to reach 6.1 per cent in 2024 Vietnam's economic growth is projected to recover to 6.1 per cent in 2024, supported by continued strong external demand, resilient foreign direct investment, and accommodative policies, according to International Monetary Fund (IMF).

Vietnamese economy forecast to grow by over 6 per cent in 2024 Vietnam's economy continues to gain momentum and is forecast to grow by more than 6 per cent in 2024, its positive outlook led by the recovery of export demand and strong inflows of foreign investment.

Vietnam's GDP climbs to 7.4 per cent in third quarter Vietnam's GDP growth accelerated to 7.4 per cent in the third quarter of 2024, despite the impacts of Typhoon Yagi.