Production activities in early 2024 at the Apparel Far Eastern (Viet Nam) Co., Ltd. located in the Viet Nam-Singapore Industrial Park, Thuan An City (Binh Duong). Photo: VNA
In the first month of 2024, Vietnam’s PMI index returned to above 50, reaching 50.3 points compared to 48.9 points in December 2023. The index result shows that the health of the manufacturing sector improved for the first time in 5 months.
Vietnamese manufacturers also saw a return to growth in early 2024, as initial signs of improvement indicated a boost in new orders and an increase in production.
Mr. Gabor Fluit, Chairman of the European Business Association in Viet Nam (EuroCham Viet Nam), commented that Vietnam’s economic recovery is on the right track. To sustain this growth momentum, there needs to be a focus on innovation, stronger trade relations with key export markets, and value-added exports through processing.
Dr. Le Duy Binh, CEO of Economica Vietnam, is optimistic that the global economy is showing signs of recovery, especially for major economies that are Vietnam’s export markets. With the exception of the European Union (EU), other economies such as the United States, Japan, China, Australia, and ASEAN countries are experiencing strong recovery, indicating stable growth in demand.
The CEO of Economica Vietnam highlighted that with the maintained stability of the macroeconomic environment and other stable achievements in 2023, it will serve as a foundation to continue maintaining and boosting the confidence of domestic and foreign businesses, as well as consumers. This will increase prospects for investment, the retail market, and domestic consumption.
Mr. Binh also emphasized that recent figures show a high level of foreign investor interest in the Vietnamese market, particularly in the activities of shifting new supply chains. This promises a continued increase in foreign investment, and domestic private investment is also better than last year, contributing directly to overall economic demand. Moreover, indicators indicate growth in exports, consumption, and investment. These are factors that will drive good economic growth and a more positive outlook in 2024 compared to the previous year.
In parallel, with the determination and direction of the Government, 2024 will witness even stronger reforms in the investment and business environment, creating expectations for strong growth in private investment, especially foreign private investment, in 2024.
