Standard Chartered forecasts strong growth for Viet Nam in first quarter
VGP - Standard Chartered Bank forecasted Viet Nam’s GDP to grow strongly by 7.7 percent in the first quarter of this year (up from 7.6 percent in the fourth quarter of 2024) in its latest macroeconomic update about the country.
The 2025 GDP growth forecast remains at 6.7 percent, with moderation expected in the second half.
According to the bank, Viet Nam's economic outlook remains supported by strong integration into global trade networks through multiple free trade agreements, along with continued foreign direct investment (FDI) inflows. These factors continue to strengthen the country's position in global production and exports.
Key economic indicators for March point to steady performance. Retail sales growth likely eased to 6.2 percent in March. Export growth may have moderated to 8.2 percent given a higher base; electronics exports have likely continued to improve year-to-date.
Imports and industrial production likely grew 6 percent and 6.2 percent, respectively. Inflation is expected to 3.4 percent in March (from 2.9 percent previously). If inflationary pressures persist, they may pose challenges for monetary policy.
Tim Leelahaphan, Senior Economist for Viet Nam and Thailand, Standard Chartered Bank, shared, while economic growth remains strong, trade risks and currency fluctuations could impact policy decisions. Viet Nam may consider have flexible monetary policies to ensure resilient financial sector and navigate potential economic fluctuations./.
