A bird’s-eye view of Ho Chi Minh City, Vietnam, a bustling metropolis and economic hub.
The latest report from the General Statistics Office on the socio-economic situation reveals a positive economic outlook for Vietnam, with a GDP growth rate of 6.93% in Q2 2024 compared to the previous year. The GDP growth for the first half of 2024 stood at 6.42%, just shy of the 6.58% growth rate achieved in the same period in 2022.
Vietnam’s economy has been long awaiting a significant boost, and that moment has finally arrived. In fact, the country’s growth in the second quarter far exceeded HSBC’s market expectations of 6%. Coupled with a slight upward revision for Q1 2024, this brings the six-month growth rate to an impressive 6.4%,” noted HSBC in their report.
Mr. Jose Vinals, Chairman of Standard Chartered, commented on Vietnam’s economic growth, stating, “While the global economy is predicted to grow by just over 3% this year, Vietnam’s economy is on track to achieve a remarkable 6% growth rate, nearly double the global average.”
Not only does this growth outpace that of emerging markets, which are expected to grow by approximately 4% this year, but it also surpasses the projected growth of 5% for emerging markets in Asia. Vietnam’s economic growth is truly a cause for celebration and puts the country at the forefront of global economic expansion.
“Vietnam’s projected growth rate also surpasses that of emerging markets and remains at the top of the global growth rankings, which is excellent news,” added Mr. Jose Vinals, providing further context to the country’s impressive performance.
In Q2 2024, all ASEAN-6 countries experienced economic growth compared to the previous quarter. Notably, with a GDP growth rate of 6.93%, Vietnam surpassed the Philippines as the fastest-growing economy in the region. The Philippines followed closely with a GDP increase of 6.3%.
Malaysia took third place, with a GDP growth rate of 5.9% in Q2 2024 compared to the previous year. Indonesia came in fourth with a GDP growth rate of 5.05% in the same quarter. Singapore and Thailand rounded out the group, with GDP growth rates of 2.9% and 2.3%, respectively.
Mr. Micheal Kokalari, Chief Economist at VinaCapital, offered his insights, stating that Vietnam’s economic growth in the first half of 2024 exceeded expectations. He attributed this success primarily to a robust recovery in manufacturing and exports.
Delving into the breakdown of GDP growth, the industry and construction sector maintained its upward trajectory. The total added value of the industry sector for the first six months of 2024 increased by 7.54% year-on-year, just shy of the 8.32% growth rate achieved in the same period in 2022. This sector alone contributed 2.44 percentage points to the overall GDP growth rate.
Mr. Kokalari emphasized, “While the main driver of Vietnam’s economy in 2023 was the recovery of the tourism sector, the manufacturing sector will take the lead in 2024.”
Vietnam’s GDP growth compared to other ASEAN-6 countries in Q2 2024 (in %).
Can Vietnam’s GDP growth maintain its momentum and remain at the top of the ASEAN-6 group in Q3?
Despite the impressive performance in Q2, UOB maintains a cautious outlook for the second half of 2024. In their report on the economic outlook for Southeast Asia, UOB highlights external factors such as conflicts in Eastern Europe and the Middle East, which continue to weigh on the global economic landscape. As major economies like China and Europe face challenges, the ASEAN region shines as a beacon of stability and growth.
UOB’s experts predict that the ASEAN region will be a global safe haven for economic growth, with a projected GDP growth rate of 4.9% for the ASEAN-6 countries in 2024, up from 4.0% in 2023. This growth will be bolstered by strong performance in the tourism, domestic spending, trade, and FDI sectors.
For Vietnam, UOB forecasts a GDP growth rate of 6.5% in Q3 2024, supported by a rebound in the semiconductor cycle, stable growth in China and the region, and supply chain shifts. This projection keeps Vietnam at the top of the GDP growth rankings within the ASEAN-6 group.
Following Vietnam, the Philippines is expected to achieve a GDP growth rate of 6.2% in Q3. Indonesia is projected to come in third, with a GDP growth rate of 5% in the same quarter. Malaysia is anticipated to have the fourth-highest growth rate in the region, with a projected GDP increase of 4.7% year-on-year. Singapore and Thailand are expected to trail slightly, with GDP growth rates of 3% and 2.5%, respectively.
UOB’s projection for Vietnam’s GDP growth in Q3 2024, leading the ASEAN-6 group.
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
Dragon Capital Chairman: “Long-term vision is needed, accepting necessary adjustments for a safer, more efficient, and higher quality market”
According to Mr. Dominic Scriven, Chairman of Dragon Capital, the role of the finance industry in the stock market will be significant in 2023 and possibly in 2024. The roles of other industries, such as real estate or consumer goods, will depend on their respective challenges.
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
