According to the report, UOB forecast that the economic growth will slow to 5.7% in the third quarter, down from 6.0%, and to 5.2%, down from 5.4%, in the fourth quarter.

As a result, the growth projection for the entire year will be lowered to 5.9%, down by about 0.1% from the previous forecast of 6%. This is still mark a positive recovery compared to the growth rate of 5% recorded in 2023.

Moving into 2025, the UOB expects the Vietnamese economy to grow at 6.6% to compensate for the previous decline.

According to the UOB, before the typhoon Yagi, the Vietnamese economy during eight-month period witnessed strong growth momentum.

The country’s Purchasing Managers' Index (PMI) has outperformed its neighbouring countries in the ASEAN region since June, posting 52.40 points in August.

Exports recorded double-digit growth throughout the reviewed period with the country racking up a trade surplus of US$18.5 billion.

Retail sales maintained an average monthly growth rate of 8.8% year on year, despite a high base in 2023.

Furthermore, foreign direct investment (FDI) inflows continue to surge, which in turn reflects the optimism held by foreign investors, reaching US$20.5 billion in eight months, 7% higher than the figure recorded in the same period last year.

Despite the impact of the storm, Vietnamese growth momentum is forecast to remain strong this year and ahead into 2025, driven by both manufacturing and trade activities, according to experts.

VOV