The World Bank’s latest report predicts a higher economic growth rate for Vietnam in 2024, attributed to a recovery in exports of manufactured goods, tourism, consumption, and investment.
The Vietnamese economy is expected to grow by 6.1% in 2024, followed by 6.5% in 2025 and 2026, an improvement from the 5% growth rate in 2023. This indicates the country’s economic resilience amidst mounting global challenges.
The forecast considers a higher starting point in the second half of 2023, assuming a slowdown in export growth of manufactured goods in the latter half of 2024 after a strong recovery of 16.9% year-on-year in the first half of 2024. Global demand is projected to taper off in 2024, especially in the US, Vietnam’s largest export market.
The real estate market is showing signs of recovery and is expected to rebound by the end of 2024 and early 2025, following the resolution of the corporate bond market freeze and the implementation of the Land Law in August 2024.
Vietnamese economy projected to grow by 6.1% in 2024.
With continued growth in exports and a recovering real estate sector, domestic demand is expected to increase in the second half of 2024 as investor and consumer confidence improves.
The current account balance is forecast to maintain a small surplus, while the government focuses on consolidating the budget balance. Inflation is predicted to ease from 4.5% in 2024 to 3.5% in 2026.
One of the main risks to economic growth is the uncertainty of global economic growth, which may fall short of expectations, particularly in Vietnam’s major trading partners such as the US, the European Union, and China.
These developments could negatively impact Vietnam’s exports of manufactured goods and, consequently, economic growth.
Vietnamese economy demonstrates resilience amidst global challenges.
Additionally, on the domestic front, macroeconomic fluctuations can negatively impact consumer and investor confidence, affecting consumption and investment. The real estate market recovery may take longer than expected, adversely affecting private sector investment. If the asset quality of banks continues to weaken, their lending capacity could be impaired…
Singapore’s 2024 Growth Projection: 2-3%
Meanwhile, the Singapore economy is forecast to grow between 2% and 3% in 2024, according to the Ministry of Trade and Industry (MTI) report cited by The Straits Times. The previous projection ranged from 1% to 3%.
Singapore is expected to maintain its recovery momentum for the rest of the year, with growth likely to reach the upper half of the official forecast range, despite risks such as geopolitical tensions.
In the first half of 2024, Singapore’s gross domestic product (GDP) grew by an average of 3% year-on-year.
Singapore’s economy is projected to grow by 2-3% this year.
MTI’s outlook for 2024 aligns with the Monetary Authority of Singapore’s (MAS) statement on July 26 that GDP growth is likely to move toward its potential rate of 2–3% for the whole year.
MTI’s Chief Economist, Yong Yik Wei, told the media that unless there is a global downturn, growth is expected to remain at this 2–3% trend in the medium term, until around 2033 or thereabouts.
This is consistent with Prime Minister Lawrence Wong’s statement that Singapore aims for an average annual growth rate of 2–3% over the next decade.
Singapore’s economy grew by 2.9% in the second quarter of this year.
In the second quarter, the city-state’s economy expanded by 2.9%. This growth follows a 3% expansion in the first quarter—the fastest pace since the 4.2% growth in the third quarter of 2022.
MTI noted that growth in the second quarter was primarily driven by the wholesale trade, financial and insurance services, and information and communications sectors. However, the manufacturing sector contracted, mainly due to a decline in the biomedical manufacturing cluster as pharmaceutical output fell sharply.
The critical electronics industry returned to growth, supported by robust demand for smartphones, personal computers, and AI-related chips, even as demand for automotive and industrial chips remained weak.
Consumer-facing sectors, such as retail and food and beverage services, contracted, partly due to increased overseas travel by locals.
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.
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.
Vietnam’s Irresistible ‘Specialty’ That China Desperately Wants to Revive: Highly Popular from the US to Asia, Bringing in Millions of Dollars
Vietnam is one of the largest exporting countries in the world, along with China and the Philippines.
