World Bank forecasts Vietnam's economy to grow 6.1% in 2024

DNVN - The World Bank forecasts Vietnam's economic growth rate to reach 6.1% in 2024, driven by the recovery of manufacturing exports, tourism, consumption and investment.

The Vietnam Economic Update Report for August 2024, titled "Reaching new heights in the capital market" by the World Bank, published on the morning of August 26, forecasts that Vietnam's economy will grow by 6.1% in 2024 and 6.5% in 2025 and 2026. These growth figures are higher than the 5% in 2023.

The report shows the resilience of the Vietnamese economy amid increasing global challenges. The economy has yet to return to its pre-COVID-19 growth path.

Therefore, the Vietnamese Government needs to boost public investment to both stimulate short-term demand and help solve the problem of infrastructure shortages, especially in the fields of energy, transportation and logistics, which are "bottlenecks" hindering growth. In addition, it is necessary to closely monitor the asset quality of banks due to increasing bad debts.

At the announcement ceremony of the Vietnam economic update report in August 2024, the World Bank representative said that developing capital markets will help Vietnam become a high-income country by 2045.

According to Mr. Sebastian Eckardt - Head of Macroeconomics, Trade and Investment for the East Asia - Pacific region of the World Bank: "In the first half of this year, the Vietnamese economy benefited from the recovery in export demand. To maintain growth momentum from now until the end of the year and the coming years, competent authorities need to continue institutional reform, promote public investment. At the same time, manage and monitor risks in the financial market".

The World Bank report emphasizes that developing capital markets will create an important source of long-term capital for the economy, helping Vietnam achieve its goal of becoming a high-income country by 2045. Vietnam needs a stronger policy framework, in which social insurance will become a key factor promoting the development of capital markets.

Policies need to facilitate the upgrading of Vietnam's stock market from a frontier market to an emerging market. Combined with reforms to improve market transparency and protect investors, it will help attract more foreign investors.

Effective coordination among State management agencies in the financial sector is an important factor contributing to achieving those goals.

"Billions of dollars of global investment funds will be poured into capital markets if Vietnam is upgraded to emerging market status. Vietnam needs to gradually diversify its social insurance fund investment channels to improve long-term profits; increase resources for economic growth through investment in the corporate sector," Mr. Ketut Ariadi Kusuma - senior financial sector specialist of the World Bank recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/world-bank-du-bao-kinh-te-viet-nam-tang-truong-6-1-nam-2024/20240826102606634