Standard Chartered Bank maintains Viet Nam's 2024 GDP growth forecast at 6.7%
VGP - Standard Chartered Bank continues to expect robust GDP growth of 6.7 percent for Viet Nam in 2024, with the growth rates of 6.2 percent in the first half and 6.9 percent in the second half.
In its global research themed "Viet Nam-Stronger but not easier", the bank held that Viet Nam's retail sales and industrial production have stayed robust despite the recent moderation.
According to the research, exports and imports are starting to recover, though electronics-related trade remains tentative.
The manufacturing sector stands to benefit from shifting global supply chains, with multiple free-trade agreements.
Viet Nam has a favorable investment environment relative to neighboring markets, including clear demographic advantages and low labor costs.
Tim Leelahaphan, Economist at Standard Chartered Bank noted that Viet Nam continues to offer a promising medium-term outlook.
The country needs to upgrade infrastructure, prepare to lower carbon emissions, increase self-reliance, he suggested.
The State Bank of Viet Nam should strike a delicate policy balance between supporting the economic recovery, and combating rising inflation and currency weakness, he recommended.
Increased self-reliance will be key to building a resilient economy, he shared, adding that the country needs to upgrade its manufacturing capacity to move beyond its role as a contract manufacturer, including diversifying import sources and investing in producing some of these inputs onshore./.
