The Asian Development Bank (ADB) maintained its positive economic outlook for Vietnam, forecasting the country’s GDP growth at 6% in 2024 and 6.2% in the following year.

At a press conference to launch the Asian Development Outlook (ADO) report on Wednesday, ADB Country Director for Vietnam Shantanu Chakraborty attributed the steady recovery to improving industrial production and a strong rebound in trade.

ADB Chief Economist Nguyen Ba Hung said that export-oriented industry remains the key growth driver for Vietnam’s economy. New orders and consumption recovery have restored manufacturing in the first half of the year, and a stronger momentum is expected throughout the year.

Vietnam’s Manufacturing Purchasing Managers' Index rose slightly above 52.4% in August and continued to expand, indicating a recovery in the consumer goods manufacturing sector. According to ADB, the recovery of the service sector and stable agricultural output have also contributed to Vietnam's economic recovery.

Industry is projected to grow 7.3% this year and 7.5% in 2025. Construction will continue to increase if major infrastructure projects are implemented as scheduled. Foreign direct investment inflows continue to increase and support export growth. Registered FDI capital in the 8 months of 2024 reached 20.5 billion USD, up 7% over the same period last year.

Other sectors are expected to grow at a modest rate. Services are forecast to grow 6.6%, thanks to the recovery of tourism and related services. Inflation is forecast to increase slightly at 4% in 2024 and 2025.