Viet Nam to become ASEAN's fastest growing economy in 2024: HSBC

The World Bank's October report highlights new opportunities for Viet Nam in global trade connectivity, as international trade tensions boost the position of East Asia-Pacific nations.

Also, WB's semi-annual East Asia and Pacific Economic Update predicted that developing economies in the region would continue to outpace global growth in 2024, albeit slower than pre-pandemic levels.

Meanwhile, HSBC forecasted Viet Nam's economy to grow by 7 percent in 2024, positioning it as ASEAN's fastest-growing economy with new GDP generation comparable to the Netherlands, despite global economic challenges.

Tim Evans, CEO of HSBC Viet Nam, noted that the country had achieved remarkable economic progress, becoming one of the world's top 40 economies by GDP and top 20 in trade.

This progress has driven per capita income from US$100 at the start of reforms to US$4,300 today. However, rapid global changes, primarily digital transformation and climate change, demand adaptability for sustainable development.

Viet Nam shows significant digital consumption potential due to its young population, high internet penetration, and robust e-commerce ecosystem. To maximize this potential, continued investment in education and technology access is crucial.

Additionally, climate change presents both challenges and opportunities for Viet Nam. While vulnerable to its effects, the country possesses substantial renewable energy potential, attracting foreign investment in this sector.

Standard Chartered Bank has raised Viet Nam's 2024 GDP growth forecast to 6.8 percent from 6 percent, following better-than-expected Q3 results.

The bank's economists cite strong growth drivers across multiple sectors, including trade, retail, real estate, tourism, construction, and manufacturing.

Trade recovery, increased business activity, and foreign direct investment are expected to be key growth drivers in 2025 and beyond./.