UOB projects 6% GDP growth for Vietnam in 2024, 6.4% in 2025

13 Jun '24

2 min read

UOB projects 6% GDP growth for Vietnam in 2024, 6.4% in 2025

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United Overseas Bank recently projected Vietnam's economic growth rate at 6 per cent in Q2 2024 and for the entire year.
The growth in Q1 was 5.66 per cent and is expected to be 6.4 per cent next year.
Inflation will be controlled at 3.8 per cent, the bank noted.
Industrial production rose by 8.9 per cent in May, marking the third consecutive month of growth.

Singapore-based United Overseas Bank (UOB) recently projected Vietnam’s economic growth rate at 6 per cent in the second quarter (Q2) this year and for the entire year. The growth in Q1 2024 was 5.66 per cent and is expected to be 6.4 per cent next year.

The reason cited was a rise in demand for chips, the recovery of Chinese and regional economies and ongoing supply chain drifts.

Inflation will be controlled at 3.8 per cent, the bank noted.

Other recent economic indicators for the country also affirm a positive outlook for the economy.

The manufacturing purchasing managers’ index (PMI) remained unchanged at 50.3 in May, signalling a second consecutive marginal monthly improvement in business conditions in the industry, a Vietnamese media outlet reported.

Industrial production rose by 8.9 per cent in May, marking the third consecutive month of growth.

Exports posted two-digit growth for the third consecutive month, at 15.8 per cent in May, up from 10.6 per cent in April. Imports rose by 29.9 per cent in May from 19.9 per cent in April.

The trade surplus was $7.8 billion in the first five months this year, while foreign direct investment rose by 7.8 per cent to reach $8.3 billion during the period—the fastest pace since 2018.

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