Vietnam's economy shows signs of recovery

The information was shared at the Vietnam Economic Outlook Seminar themed Prospects for Recovery Amidst a Dynamic Global Outlook organised by Citi on November 15 in Ho Chi Minh City.

This session provided Citi’s corporate clients with updated insights into the economic and investment trends shaping the country's economy.

Citi's economist Helmi Arman gave a key presentation at the event, reaffirming that industrial production has started rebounding in both export-oriented industries, such as electronics, textiles, and footwear, and domestically focussed industries, including metals and cement.

He noted that the most substantial shocks to both domestic and international demand seem to have been diminished. Industrial output and investments into manufacturing are on an upward trajectory, laying the foundation for recovery.

Vietnam’s exports received a helping hand from China after its border reopening and the resulting recovery in retail sales. However, textile and footwear exports to the US are still below last year’s peaks.

Vietnam's pre-COVID tourism revenue accounted for 3.6 per cent of GDP, yet monthly arrivals in October were 69 per cent of those levels, with arrivals from China still quite low at 31 per cent. The freeze in the Vietnamese real estate sector has passed, but demand-supply mismatches remain, so the recovery in this area will take time.

Citi's economist Helmi Arman said, “The current trends are supporting our optimism about Vietnam’s positive structural story. But although the foundation for recovery is visible, it is unclear how soon the economy will begin firing on all cylinders.”

Ramachandran A.S., country officer for Citi in Vietnam added, “I am confident in asserting that Vietnam's resilient economy possesses the inherent ability to navigate hurdles and continue a positive trajectory. Citi is committed to supporting its growth and that of our clients operating within this dynamic landscape.”

Citi survey regards Asia-Pacific as 'most favoured region' Citi Commercial Bank (CCB) recently published its 2023 Global Industry Insights Report, surveying business leaders and executives from over 500 companies worldwide on the opportunities and challenges they face.

Citi Foundation announces recipients of Inaugural Global Innovation Challenge Fifty organisations have been granted a total of $25 million to pilot or expand catalytic solutions to improve food security globally, according to the Citi Foundation.

Global Finance names Citi as World’s Best Digital Bank 2023 Citi has been recognised as the World’s Best Digital Bank and Best Corporate or Institutional Digital Bank at Global Finance World’s Best Digital Bank Awards 2023.