Vietnam maintains sustainable growth, remaining an attractive destination for foreign investors.

Amidst ongoing global economic challenges, Vietnam's economy demonstrated a strong recovery in the first half of 2024, further solidifying its position as an attractive investment destination for international businesses and investors.

At a presentation ahead of the upcoming “UOB Gateway to ASEAN” regional conference in Ho Chi Minh City on September 6, 2024, Mr. Suan Teck Kin, Director of Global Market Research and Economics at UOB Bank (Singapore), highly appreciated the economic and trade potential of the ASEAN region, with Vietnam standing out as an important destination in the region with positive prospects in the coming time.

That is also why UOB chose Vietnam to host its annual regional conference this year, after having held it in Singapore and Indonesia in previous years.

Mr. Suan Teck Kin, Director of Global Market and Economic Research, UOB Bank (Singapore).

The fastest growth potential in Southeast Asia.

According to the latest data from the General Statistics Office (GSO), Vietnam's real GDP grew by 6.93% year-on-year in the second quarter of 2024. This result not only continues the growth momentum from 5.87% in the first quarter of 2024, but also surpasses the 6.72% growth in the fourth quarter of 2023 and 4.05% in the same period of 2023. In total, the Vietnamese economy grew by 6.42% year-on-year in the first half of 2024, far exceeding the 3.84% growth of the first half of 2023.

This growth was bolstered by the balanced development of both key sectors: manufacturing and services. In the second quarter of 2024, the manufacturing sector continued its strong growth with a 10.0% year-on-year increase, while the services sector also recorded a 7.1% growth. This marks the 11th consecutive quarter of positive results for the services sector since its recovery from the Covid-19 pandemic.

Vietnam's foreign trade continued to grow in the second quarter of 2024, despite challenges from the Russia-Ukraine conflict and shipping disruptions in the Red Sea. Exports recorded a 10.5% year-on-year increase in June, while imports rose 13.1% year-on-year. The total trade surplus reached US$11.3 billion in the first half of 2024, nearly matching the US$12.1 billion surplus for the whole of 2022.

Vietnam stands out as an important destination within ASEAN with positive prospects for the future.

“Vietnam’s economic outlook for 2024 remains positive, with a projected GDP growth rate of 6% and the potential to exceed this figure. This optimism is based on strong performance in sectors such as manufacturing, electronics, furniture, and automotive. Despite some global challenges such as high interest rates and slowing demand in developed markets, Vietnam’s Purchasing Managers’ Index (PMI) stands out as one of the highest in Asia, indicating continued expansion,” said Suan Teck Kin.

Mr. Suan also noted that Vietnam's growth potential is very promising for both 2024 and 2025, especially when compared to the slower growth rate of 5% in 2023.

Sharing UOB's view, other reputable financial institutions such as ADP, WB, and IMF also have quite optimistic forecasts for Vietnam's growth this year, at 6.0%-6.5%. If Vietnam achieves a 6.5% GDP growth rate this year, it has a high probability of becoming the fastest-growing economy in ASEAN.

A global investment hotspot.

Vietnam is a key member of ASEAN and is well-positioned to benefit from strong growth in both trade and foreign direct investment (FDI) across the region.

“ASEAN is currently the second-largest destination for FDI globally, after the United States. In 2023, FDI inflows into the region increased by 1.2%, despite a 2% decline in global FDI. Singapore, Indonesia, and Vietnam are the leading recipients of FDI in the region, with investments primarily coming from the United States, China, Hong Kong, and Japan,” Suan noted.

Vietnam's growth potential is very promising for both 2024 and 2025.

Thanks to its economic stability, strong resilience, and long-term business support policies, Vietnam is emerging as an attractive investment destination in the ASEAN region.

Actual FDI inflows into Vietnam reached a record high of US$23.2 billion in 2023, surpassing the previous record of US$22.4 billion in 2022. From the beginning of this year to the end of June alone, registered FDI in Vietnam reached US$15.2 billion, a 13.1% increase compared to the same period last year. Singapore, Japan, and Hong Kong were the largest sources of investment, with the manufacturing and processing sector attracting the most attention from investors. FDI disbursed (or implemented) into Vietnam from the beginning of the year to June reached US$10.8 billion, more than double the US$4.6 billion recorded in the first quarter of 2024.

These figures show that foreign investors continue to view Vietnam as an important investment destination in the medium and long term. The increase in FDI inflows will further boost domestic activities in the near future, including construction and employment.

Furthermore, the maintenance of an open investment policy and government support, combined with the balanced development of the manufacturing and service sectors, has created an optimistic picture for Vietnam's economic prospects. These factors not only help Vietnam maintain its attractiveness to investors but also affirm its role as a strategic economic hub in the ASEAN region.

To share more in-depth information about growth and investment opportunities in the ASEAN region, and especially in Vietnam, UOB Bank will organize its annual “Gateway to ASEAN” conference, themed “ASEAN: Crossroad to The World,” on September 6th at Thisky Hall Sala Convention Center, 5th floor, Grand Skylar, Ho Chi Minh City. The conference is expected to bring together leaders from Vietnamese ministries and agencies, as well as leading businesses in the region.

As the bank with the largest commercial network in ASEAN, UOB plays a connecting role and fosters sustainable cooperation in the region. Leveraging its extensive regional network and deep local understanding, UOB is committed to providing comprehensive financial solutions and support to help businesses seize growth opportunities in this dynamic economic region.

Learn more about the event at: events.searix.net/uobgta/

Source: https://baodautu.vn/viet-nam-giu-da-tang-truong-ben-vung-tiep-tiep-la-diem-den-hap-dan-cho-nha-dau-tu-nuoc-ngoai-d224087.html