Viet Nam forecasted to post positive GDP growth in 2024

In a report 'ASEAN Frontiers: The New Trailblazers', researchers from Maybank said the recovery in GDP growth will be driven by manufacturing and exports, particularly electronics, which are supporting a modest growth recovery in the first half of the year.

Maybank also said that artificial intelligence, data center boom, and broadening global electronics demand are brightening the trade and foreign direct investment (FDI) outlook.

Despite elevated interest rates, strengthening economic activities have resulted in loan growth picking up across ASEAN, Maybank said.

Maybank also noted that ASEAN has emerged as one of the preferred destinations as multinational companies diversify their manufacturing supply chains.

FDI approvals and applications to several ASEAN countries including Malaysia, Thailand, Viet Nam and Indonesia, have risen sharply.

Meanwhile, private investment has strengthened in the first quarter of this year in Malaysia, Viet Nam, Thailand and Indonesia, suggesting that the recent surge in FDI pledges is materializing.

ASEAN countries are securing investments not only from the U.S., and its allies, but also from China, as the country's FDI has increased strongly in Viet Nam, Thailand and Malaysia since the reopening.

Remarkably, Viet Nam's nascent market has received commitments from the likes of Keppel, Alibaba and Gaw Capital.

Viet Nam's GDP was estimated to expand 5.66 percent in January-March period, the highest rate over the same period since 2020, according to the General Statistics Office (GSO).

The Vietnamese Government is determined to achieve the GDP growth goal of 6.5 percent in 2024./.