HSBC revises Viet Nam’s GDP growth forecast to 7%

In its latest update, HSBC said that Viet Nam is clearly back as ASEAN's growth star. Q3 growth came in at 7.4 percent year-on-year, beating HSBC and market expectations of 6.2 percent and 6.1 percent, respectively.

Earlier, on September 30, HSBC maintained its growth projection at 6.5 percent for both 2024 and 2025, despite temporary economic disruptions from super typhoon Yagi, the most powerful to hit the country in over three decades.

The outperformance continued to be led by manufacturing, which grew 11.4 percent year-on-year. This was corroborated by healthy trade data, with exports rising 15.3 percent year-on-year in Q3.

"Encouragingly, the trade recovery that was initially centered around electronics is showing signs of broadening out, with textiles and footwear exports rising 16.7 percent year-on-year," the bank noted.

Earlier this week, Singapore-headquartered United Overseas Bank (UOB) revised its projection for Viet Nam's 2024 GDP growth to 6.4 percent from 5.9 percent after a "surprisingly strong" Q3 performance.

The World Bank raised its 2024 GDP growth forecast for Viet Nam to 6.1 percent from 5.5 percent released in April.

Last month, the International Monetary Fund (IMF) said Viet Nam's growth is projected to recover to 6.1 percent in 2024, up from the 5.8 percent forecast for April.

U.S.-based market intelligence company S&P Global revised up its GDP growth for Viet Nam to 6.2 percent this year, higher than the 5.8 percent figure in June.

The Vietnamese government targets 7.6-8 percent in Q4/2024 to reach the whole-year reading at 7 percent, higher than the National Assembly's preset target of 6-6.5 percent.

Earlier, the World Bank and the United Overseas Bank also revised up Viet Nam's 2024 GDP growth following the Southeast Asian country's positive performance in the first three quarters./.