The Khvatec Thai Nguyen Company Limited (with Korean investment capital) in Yen Binh Industrial Park, Pho Yen City, specializes in pressing, casting, electroplating, and assembling electronic components for the electronics industry. Photo: Tran Viet/VNA
According to Mr. Paulo Medas, Vietnam is still an attractive destination for foreign direct investment (FDI) amidst global economic fluctuations and escalating geopolitical uncertainties. Mr. Paulo Medas affirmed that despite the common challenges of the global economy, Vietnam recorded a growth rate of 5.66% in the first quarter of 2024. Export of goods continued to grow robustly, supporting the overall growth momentum. However, domestic demand, especially personal consumption, is modest and poses a potential risk to the economy.
The IMF forecasts that Vietnam could attain a growth rate of nearly 6% in 2024, thanks to the recovery of domestic demand and the government’s supportive fiscal policy. However, the IMF also recommends that Vietnam adopt a flexible fiscal policy to cope with risks and ensure sustainable growth.
Amidst rising inflation due to global fluctuations, the IMF holds that Vietnam may need to raise interest rates to curb inflationary pressures. However, adjustments to monetary policy should be carried out prudently to avoid negative impacts on growth.
