With the world economy facing difficulties, Vietnam's GDP growth, while falling short of  last year’s target, was still impressive. Since the fourth quarter of 2023 Vietnam's economic recovery has become more obvious.

Optimistic with Vietnam's GDP growth index

Global financial and economic organizations have recently given optimistic comments about Vietnam's economic prospects in 2024.

Standard Chartered Bank has predicted that Vietnam's GDP growth will reach 6.7% this year. According to the Asian Development Bank’s Outlook Report this month, Vietnam's economic growth will be 6% in 2024.

In a note released late last month, Singapore-headquartered United Overseas Bank also forecast 6% growth for Vietnam in 2024. According to UOB, exports and FDI attraction will be Vietnam’s main growth drivers, and Vietnam is in a good position to continue attracting FDI.

A Bloomberg survey showed that Vietnam's economy will likely grow 6.3% in the first quarter and 6.5% in the second quarter of this year. GDP growth is projected to be 6% in 2024 and 6.4% next year.

The International Monetary Fund expects Vietnam's GDP to increase 5.8%, to rank second in the region.

Positive signs

According to the General Statistics Office, Vietnam saw positive signs from many economic indicators in the first month of this year, particularly in foreign investment capital, which reached 2.36 billion USD, up 40.2% from last year. Newly registered capital increased sharply for 190 new projects. The increase in the number of projects, especially projects worth more than 600 million USD, drove the sharp rise in FDI capital. Disbursed capital reached 1.48 billion USD, up 9.6% from last year.

Budiarsa Sastrawinata, Ciputra Group CEO (Photo: VNA)

Budiarsa Sastrawinata, Ciputra Group CEO, said, “It's already clear that the potential of Vietnam is very big, being the second largest population in ASEAN and is showing a very positive and steady growth of economy for the last 10 or maybe 20 years. It is a guaranteed positive environment that any investors will need it. Ciputra is looking for new projects in Vietnam.”

The macroeconomy remains stable. Fiscal and monetary policy have been effective. Agriculture continues to be the "pillars" of the economy. The service sector is gradually recovering, with tourism as the bright spot. In addition, industrial activity is recovering, with the industrial production index starting to rebound. The Vietnamese Government is making a great effort to disburse public investment capital.

ASEAN Secretary General Kao Kim Hourn (Photo: Le Duong/VNA)

ASEAN Secretary General Kao Kim Hourn said, “Vietnam is taking advantage of the current situation because investors need a stable environment. So Vietnam is very stable. That’s the advantage of Vietnam.

According to Kao, investors also need a strong leadership and Vietnam aslo has a strong leadership. Vietnam has used all of these to attract foreign investment but, at the same time, Vietnam has a lot of export markets like the US, China, Japan, South Korea, and Europe.

Vietnam is considered a strong potential market for energy conversion, carbon storage, renewable energy, and green energy development.

Overcoming the difficulties and challenges of the global economy, Vietnam's economy has demonstrated clear growth recovery. This year and in the coming years, Vietnam will take the initiative in analysis and forecast to create suitable response scenarios, diversify export markets, exploit signed FTAs and upgraded strategic partnerships, and efficiently disburse public investment.

Vietnam should also apply new technology to digital economic development, green growth, and energy conversion, increase labor productivity, and speed up the reform of economic institutions and the business investment environment. This will be the foundation for accelerated growth in 2024 and beyond.