AHK Vietnam - Delegation of the German Industry and Commerce in Vietnam’s Post

VIETNAM ECONOMIC MONITORING 2023: VIETNAM A BRIGHT SPOT IN GLOBAL PANORAMA   2023 continues to be a tough year for the world economy due to global uncertainty, including geopolitical conflicts, tight monetary policies in major economies, energy crisis, and world economic slowdown. In the context of numerous challenges in the global economy, Vietnam's economy in 2023 still shows clear signs of recovery.   📌 Amid difficulties and challenges, the Vietnamese economy has managed to secure a growth rate of over 5%, which is quite high compared to many countries in the region and the world. The Center for Economics and Business Research (CEBR) forecasts an average annual GDP growth rate of 6.7% for the period 2024-2028. This figure is expected to be 6.4% in the subsequent nine years. 📌 The Index of Industrial Production (IIP) increased by 3%. 📌 The average Consumer Price Index (CPI) rose by 3.3%, with stable inflation at 4.2%. 📌 Vietnam recorded a trade surplus of about $28 billion. The total import-export turnover of goods hit $683 billion, posting a year-over-year decrease of 6.6%. Notably, the rice export volume surpassed 8 million tonnes, valued at over $4.4 billion, representing the highest figure since 2009. 📌 Remittances to Vietnam totaled $190 billion from 1993 to 2022, nearly the same as disbursed foreign direct investment in the same period. The estimated remittances to Vietnam in 2023 were $14 billion. 📌 According to the Foreign Investment Department, Vietnam attracted $36.6 billion of registered capital, a 32.1% increase compared to 2022. The number of new licensed projects increased by 56.6% year-on-year at 3,188 projects, worth $20.2 billion. Among 111 countries and territories that have invested in Vietnam, Singapore remained Vietnam’s leading country of foreign investment with nearly $6.8 billion.  📌 Germany initiated 32 FDI projects in Vietnam, investing over $366.3 million, showcasing a remarkable 312.8% YoY increase. In 2023, Vietnam has been listed among the 34 countries and territories where German businesses will receive better investment guarantees from the Government of Germany when they invest there. This underscores Vietnam's appeal as a promising destination for German companies looking to diversify in Asia.   👉 Find out more infographics on our website: https://lnkd.in/gnd9DfJP      #AHKVietnam #MonthlyEconomicMonitoring #EconomicNews #PartnerInVietnam

🚀 Vietnam's Economic Resurgence: A Promising Start to 2024 🌟 1️⃣ In the first quarter of 2024, Vietnam's economy exhibits significant signs of recovery, manifesting a promising turnaround from the previous year's challenges. The country's enduring economic forces, once stagnant, are now poised for a swift rebound, aiming to rectify the downturn caused by a decrease in global market demand and the first negative growth in exports since 2009. Despite a 6.6% dip in total trade turnover year-on-year, amounting to $683 billion in the preceding year, the initial two months of 2024 have already seen a remarkable 18.6% rise in exports-imports, totalling $113.96 billion. 2️⃣ This resurgence is partly attributed to the revival of export orders, particularly from the US, where a shift in inventory strategies has rekindled demand for "Made in Vietnam" products. The country's economic indicators, including a sharp decline in inventory levels and a rise in the Purchasing Managers' Index (PMI) to 50.3 points, signal robust domestic manufacturing and broader economic health. Industrial production has also seen a noteworthy uptick, with a 5.7% expansion compared to the same period last year. 3️⃣ Consumer spending is on the rise, supported by increased production and higher incomes for workers, which in turn fuels further growth in manufacturing, business, and services. Notably, the first two months witnessed a 9.8% year-on-year increase in foreign direct investment (FDI), reaching $2.8 billion, showcasing continued investor confidence in Vietnam's economic landscape. 4️⃣ Vietnam-Australia trade relations are set to deepen, bolstered by the Vietnamese Prime Minister's visit to Australia, celebrating 50 years of ASEAN-Australia dialogue relations. This visit underscores the strong and growing trade ties between the two nations, facilitated by several free trade agreements and the mutual interest in enhancing economic and trade cooperation. 5️⃣ While challenges loom, including global demand fluctuations and high inflation, Vietnam's dynamic approach, supported by government efforts and the banking sector's pivotal role, suggests a resilient and forward-moving economy. As Vietnam navigates these challenges, its strategic position in the global market continues to strengthen, heralding a year of potential and prosperity. 6️⃣ For professionals and businesses looking towards Vietnam, the first quarter of 2024 marks a period of rejuvenation and opportunity, signalling a conducive environment for investment, expansion, and collaboration in one of Asia's most dynamic economies. Source: https://lnkd.in/gZPnY_J4 Image by Minh Minh on Unsplash

Vietnam ranks among the top global leaders in asset growth over the next decade. According to research company New World Wealth, Vietnam is predicted to experience a staggering 125% growth in assets over the next 10 years. This is the highest asset growth rate compared to any country in terms of average GDP per capita and the number of millionaires. Analyst Andrew Amoils states that Vietnam is becoming an increasingly popular production base for multinational technology, automotive, electronics, and textile companies. Meanwhile, India, the country expected to become the world’s third-largest economy by 2027, is projected to have a 110% asset growth rate. Amoils also notes that with 19,400 millionaires and 58 billionaires, Vietnam is considered relatively safe compared to other countries in the Asia-Pacific region. This further reinforces the country’s appeal as a top destination for companies. Vietnam is set to experience remarkable asset growth in the next decade as the country solidifies its position as a global production hub (Illustrative image: KT) McKinsey, a strategic research firm, attributes Vietnam’s success to its strategic location, sharing land borders with China and its proximity to major maritime trade routes, low labor costs, and the country’s export-supporting infrastructure. These factors have made Vietnam a top destination for international investment. In a recent assessment of Vietnam’s economy, the French Development Agency (AFD) stated that the country has experienced three decades of strong growth, with an average annual growth rate of 7% and is categorized as a middle-income country. Vietnam has successfully positioned itself in the global value chain, signing numerous free trade agreements. The director of AFD in Vietnam, Herve Conan, highly commends Vietnam’s economy, stating, “Your country has succeeded in maintaining an impressive growth rate despite the high inflation affecting many economies worldwide. In the 3-year macroeconomic evaluation conducted since the beginning of 2023, AFD acknowledges Vietnam’s encouraging achievements in maintaining political and social stability, implementing cautious economic policies to ensure growth. The domestic market scale with 100 million people is also a significant advantage. The dynamism of the national economy’s production has been maintained despite the years of COVID-19 pandemic influence.” According to the World Bank, Vietnam’s average GDP per capita was about $2,190 ten years ago and has now almost doubled to $4,100. Vietnam is rapidly developing, and most citizens are benefiting from this growth. “Economic expert and Deputy Chairman of Maybank, Brian Lee, believes that Vietnam’s growth story is driven by the industrialization process with an emphasis on exports. The country has experienced three waves of foreign direct investment over the past three decades and is currently facing the fourth wave. Despite some challenges, experts have confidence in Vietnam...

[Vietnam 2024 Outlook] Three main growth drivers of Vietnam's economy in 2024 - ADB Vietnam's economy is expected to see three main growth drivers in 2024: public investment, domestic consumption, and export recovery, according to the Asian Development Bank's Country Director for Vietnam, Shantanu Chakraborty. The ADB maintains a GDP growth rate of 6%, with the expectation of a recovery in the external environment and regained momentum from 2023. To maintain growth momentum, the country should accelerate public investment in infrastructure, boost domestic consumption through fiscal measures, and promote green energy transition. The ADB recently lowered its growth forecast for Vietnam to 5.2%, but it believes its growth rate is good compared to other countries in the region (vietnamplus, Dec 20, 2023). Andrea Coppola, World Bank Lead Economist for Vietnam, has described Vietnam as resilient despite the global economic slowdown. Vietnam is considered one of the most open economies globally, with strong trade relations with the rest of the world. Despite global challenges, Vietnam's economic performance in 2023 is positive. The country's recovery in 2023 was driven by three main factors: a gradual recovery of external demand for Vietnamese exports, increasing public investment, and resilient private consumption. Vietnam's economic and political stability make it an attractive destination for international investors. Coppola suggests that Vietnam should continue strengthening its business environment and attract private investors to fully capitalize on the impact of global geopolitical developments on international investment and trade. The World Bank expects global economic growth to decelerate further in 2024, including in key trade partners like the US (vietnamplus, Dec 20, 2023). Vietnam's 2024 outlook is promising, but cautious optimism is key. Leveraging internal growth drivers while strategically managing external risks is crucial. Continuous efforts to improve the investment climate and attract private capital are essential to fully capitalize on growth opportunities. Investors can explore opportunities in sectors aligned with the identified growth drivers, but with due diligence regarding global risks. Businesses can consider expanding operations in Vietnam, particularly in sectors benefitting from domestic consumption and infrastructure investment. Reference Sources: https://lnkd.in/guMttcXE https://lnkd.in/gpryx6Vs ======== Our Big Offer: https://lnkd.in/gTizyZMq ------------ Feel free to contact me via my WhatsApp at +84 (0) 76 548 9586 (Khoa Pham) if you would need any additional information. #Vietnam2024Outlook #GDPGrowth #ADB #MacroeconomicStability #PublicInvestment #DomesticConsumption #ExportRecovery #SustainableDevelopment

International Organizations Predict Vietnam’s Economic Growth Prospects Fitch Ratings, a credit rating agency, has recently issued an optimistic forecast for Vietnam’s economic growth in the coming years. According to Fitch Ratings, the Vietnamese government’s domestic financial and monetary policies have provided strong support for the economy. The agency predicts that the country’s economy will grow by 6.3% in 2024 and reach 7.0% in 2025. The Asian Development Bank (ADB) also expects Vietnam’s economy to grow at a rate of 6% this year, according to their latest Asian Development Outlook Report. Similarly, the International Monetary Fund (IMF) predicts that Vietnam will rank 20th in the world in terms of economic growth, with an estimated growth rate of 5.8% in 2024. In line with the Socio-Economic Development Plan for 2024, the 15th National Assembly has set a GDP growth target of 6% to 6.5%, along with an average CPI growth rate of 4% to 4.5%. Vietnam’s economic growth next year is highly appreciated by many organizations. Photo: Baobinhduong Tran Van Lam, a member of the National Assembly’s Finance and Budget Committee, believes that achieving the set growth target of 6% to 6.5% in 2024 is feasible. He points out that exports, investment, and consumption, which are the three pillars of growth, are all showing positive signs. The domestic market’s demand is also indicating signs of recovery, with a significant injection of money from stimulus packages into the national economy to boost production and consumption. While public investment is expected to be disbursed slowly, private investment is expected to recover. Furthermore, wage reform is set to take place this year, which will create additional demand and contribute to stronger economic growth in 2024. “If no adverse or sudden factors come into play, achieving the growth target set for 2024 is completely achievable,” says Lam. The International Monetary Fund (IMF) predicts that Vietnam’s GDP will grow by 5.8% in 2024, placing Vietnam among the top 20 fastest-growing economies in the world. VinaCapital Group also expects Vietnam’s GDP growth to recover to 6.5% in 2024, thanks to the recovery of the export market, the situation in the manufacturing industry, and proper financial management. Despite global economic fluctuations and domestic inflation, BNN Network suggests that Vietnam has the potential to emerge as a “lighthouse” of recovery. This is due to the combination of cautious government policies, strategic economic planning, and a commitment to stability and development. Economic experts are also positive about Vietnam’s GDP growth in the coming years. Economist Dinh Trong Thinh believes that Vietnam’s GDP will grow strongly in 2024 due to intensified public investment, production, and business activities, as well as the attraction of foreign investment capital. Economic expert Nguyen Minh Phong expects a strong growth of the national economy in 2024, driven ...

Vietnam is a bright spot on the gloomy global economic scene, the head of the National Assembly's Economic Committee, Vu Hong Thanh, has said. Speaking at a press conference on Sunday at the 2023 Vietnam Socio-Economic Forum, he said the country’s economy has been stable this year and inflation is basically under control at only 3.1% in the first eight months. Public, foreign and government debts are also within control, and the country's credit rating has improved, in fact becoming the only country in Southeast Asia to have its rating raised by Moody's last year, he said. "Vietnam's economy remains a bright spot in the bleak big picture of the world economy." In the second quarter its GDP grew by 4.14%, 3.28 percentage points higher than in the first, according to the government. Over 14,000 new businesses were established in August, an 18% increase year-on-year. For the year to date the number was 103,700, an increase of 2.3%. https://lnkd.in/gN6rwBHx

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, revealed that ASEAN’s economic progress continues to survive amidst a global economic slowdown due to several issues. In between the plenary session of the 43rd ASEAN Summit (KTT), Jakarta, Kristina delivered that the global economy remains slowed down due to the COVID-19 pandemic and the war between Russia and Ukraine, with a growth rate of only 3%, the lowest output in a decade compared to the pre-pandemic era. Meanwhile, based on her observation, the economic growth in ASEAN is forecasted to increase, with a projection of 4.9% this year. She perceived that the positive economic enhancement in ASEAN would continue in 2024. According to her, regional economic growth will also back the world because the ASEAN economy has contributed 10% of global economic growth. Read more at https://bit.ly/3LeqE5z #news #LatestNews #IMF #ASEAN #heaptalk #follow #likes #economic #growth #jokowi

According to reporting from International Banker, while China and India tend to capture most of the headlines when identifying the world’s major economies likely to grow the fastest over the coming decade, another Asian behemoth is much less discussed, despite demonstrating formidable economic growth over the last decade (outside of the pandemic.) And with estimates suggesting that Indonesia will continue on its solid growth trajectory until at least 2030, Southeast Asia’s largest economy represents one of the most exciting prospects in the world over the coming years. https://lnkd.in/gmi8N4AG #investindonesia #economy #indonesiaeconomy #economicgrowth