Vietnam's Q3 GDP poised for growth, Standard Chartered reports

September 25, 2023 | 10:35

(0) user say

In the latest global research dispatch on September 22, Standard Chartered projected a 5.1 per cent on-year ascension in Vietnam’s Q3 GDP, a leap from the 4.1 per cent growth witnessed in Q2.

The latter half of the year is set for a substantial rebound, riding on the back of Q2's initial recovery signs. The bank's outlook for 2023 remains steady, with a GDP growth estimate of 5.4 per cent.

Standard Chartered anticipates September’s figures to marginally outpace those of August, predominantly buoyed by retail sales. The forecast details an impressive 8.2 per cent annual growth in September's retail sales, though exports might dip by 6.2 per cent.

Imports are slated to shrink by 7 per cent, while industrial production growth could see a surge to 3.2 per cent.

Furthermore, the trade surplus might slim down to a mere $1.3 billion. The inflation index is set to tick up to 3.2 per cent on-year from August's 3 per cent, steered primarily by the education, housing, and food sectors.

Conversely, transport-led inflation appears to be subsiding. In the tourism front, Vietnam welcomed approximately 7.8 million international travellers in 2023's initial eight months, closely nearing the year's target of 8 million.

Yet, the resurgence treads on uncertain grounds - with trade persistently in decline, potential stagnancy in manufacturing, and foreign direct investment recovery prospects remaining indistinct.

Tim Leelahaphan, economist for Thailand and Vietnam, Standard Chartered Bank said, “While easing price pressures should allow policymakers to focus on growth, renewed concerns about an inflation rebound in the latter half of the year could deter such a move. With the economic recovery starting to gain momentum, there should be less need for monetary policy support.”

Standard Chartered Vietnam spearheads initiative on voluntary carbon credit exchange

Standard Chartered Vietnam, together with the Department of Climate Change under the Ministry of Natural Resources and Environment (MoNRE) and Climate Impact X (CIX), has organised a seminar on establishing and operating a voluntary carbon credit exchange in Vietnam.

Standard Chartered Asia records stellar first half

Standard Chartered Asia's H1/2023 report unveils a robust income growth, underpinned by record performances in 11 of its markets, including Vietnam, and a flourishing cross-border trade, particularly in the China-ASEAN corridor.

Standard Chartered Vietnam injects $60 million in fresh capital

Standard Chartered Vietnam has underscored its long-standing commitment to the nation's growth with a robust $60 million capital infusion, marking another chapter in its enduring relationship and aligning with its strategic intent to amplify onshore operations and foreign direct investment.

By Nhat Minh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional