WB revises Viet Nam’s economic growth to 6.1% in 2024

The above projections arre part of the report titled "Reaching New Heights in Capital Markets" which was published on August 26.

"During the first half of the year, Viet Nam's economy benefited from the rebound in export demand," said WB East Asia and Pacific Practice Manager for Macroeconomics, Trade, and Investment Sebastian Eckardt.

"To sustain growth momentum not only for the rest of the year but over the medium-term, the authorities should deepen structural reforms, step up public investment while carefully managing emerging financial risks."

A special chapter of the report finds that development of capital markets would provide a vital source of long-term funding for Viet Nam's economy and help the country achieve its goal of becoming a high-income nation by 2045. The report highlights key challenges, including underdevelopment of the institutional investor base and underutilization of the Viet Nam Social Security fund (VSS).

The report recommends a stronger policy framework, in which VSS could be a force in driving capital market development.

Policies that would allow markets to reclassify Viet Nam from Frontier Market status to Emerging Market status would help attract more foreign investors, as would reforms to enhance market transparency and investor protection. Effective coordination among financial regulators is crucial for achieving these goals.

International organizations have recently issued their latest forecasts for Viet Nam's economy this year.

The Asian Development Bank (ADB) forecast the growth outlook for Viet Nam in 2024 and 2025 remains unchanged at 6 and 6.2 percent respectively, driven by a strong first-half in 2024.

The International Monetary Fund pegs Viet Nam's economic growth at nearly 6 percent this year, driven by exports, foreign direct investment, and policy support.

On July 16, the ASEAN+3 Macroeconomic Research Office (AMRO) also released the July edition of its ASEAN+3 Regional Economic Outlook (AREO), raising its forecast for Viet Nam's GDP growth to 6.3 percent in 2024. This is 0.3 percentage points higher than the forecast of 6 per cent made in April and the highest among ASEAN nations.

HSBCon June 12 raised its forecast for Viet Nam's GDP growth for this year to 6.5 percent from its previous forecast of 6 per cent, after second-quarter growth beat expectations./.