James Cheo, chief investment officer of Southeast Asia and India for Global Private Banking and Wealth at HSBC, revealed that the strong inflows of foreign direct investment (FDI) will likely continue this year to strengthen the Vietnamese manufacturing sector.

Furthermore, the nascent recovery of the global trade cycle will further boost the nation’s exports, while the country is also likely to witness a gradual uptick in international tourism, he said.

“All in all, we expect Vietnam economy to grow by 6% GDP growth in 2024, faster than in 2023,” he noted.

Inflation remains fairly stable but there could be an upside risk from higher-than-expected energy or food prices, he said, adding that the country’s monetary authority will remain vigilant and keep policy rates on hold for this year.

“We forecast the VND to move towards 24,400 against the US$ by the end of 2024,” Cheo stressed.

Previously, the Ministry of Planning and Investment (MPI)’s Central Institute for Economic Management (CIEM) presented two scenarios for the national economy in the year ahead. Under the two scenarios, Vietnamese GDP growth is forecast to reach 6.13% and 6.48%, respectively.

The National Assembly also recently set the country’s economic growth target for between 6% and 6.5% this year.

Economists, however, pointed out that the GDP growth target remains challenging as the Vietnamese economy is projected to continue encountering numerous difficulties amid global uncertainties occurring this year.

Source: VOV