Vietnam to become ASEAN's fastest growing economy in 2024: HSBC
The country’s GDP growth rate expected to reach 7% this year, according to the bank.
The Government News (GN) on November 1 quoted HSBC Bank as forecasting that Vietnam's economy will grow 7 per cent in 2024, becoming the fastest growing economy in ASEAN and creating as much new GDP as the Netherlands, despite global economic challenges.
Meanwhile, the World Bank's October report, as quoted by the GN, highlights new opportunities for Vietnam in global trade connectivity, as international trade tensions boost the position of East Asia-Pacific nations.
Also, WB's semi-annual East Asia and Pacific Economic Update predicted that developing economies in the region would continue to outpace global growth in 2024, albeit slower than pre-pandemic levels.
Mr. Tim Evans, CEO of HSBC Vietnam, was quoted by the GN as noting that Vietnam had achieved remarkable economic progress, becoming one of the world's top 40 economies by GDP and top 20 in trade.
This progress has driven the country’s per capita income from US$100 at the start of economic reforms to $4,300 today. However, rapid global changes, primarily digital transformation and climate change, demand adaptability for sustainable development.
Vietnam shows significant digital consumption potential due to its young population, high internet penetration, and robust e-commerce ecosystem. To maximize this potential, continued investment in education and technology access is crucial.
Additionally, climate change presents both challenges and opportunities for Vietnam. While vulnerable to its effects, Vietnam possesses substantial renewable energy potential, attracting foreign investment in this sector.
Standard Chartered Bank has meanwhile raised Vietnam's 2024 GDP growth forecast to 6.8 per cent from 6 per cent, following better-than-expected Q3 results, according to the GN.
The bank's economists cite strong growth drivers across multiple sectors, including trade, retail, real estate, tourism, construction, and manufacturing.
Trade recovery, increased business activity, and foreign direct investment are expected to be key growth drivers for Vietnam in 2025 and beyond.
