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

VIETNAM ECONOMIC MONITORING - 11 MONTHS OF 2023: REALIZED FDI CAPITAL IN VIETNAM IS THE HIGHEST IN THE PERIOD 2018-2023    According to the International Monetary Fund (IMF), Vietnam is projected to be one of the top 20 fastest-growing economies in 2024, with anticipated GDP growth of 5.8% in the year Standard Chartered forecasts a GDP growth rate of 6.7% for Vietnam in 2024. In the context of the global economic downturn and the lingering impact of challenges on the recovery process, Vietnam is taking steps to boost the economy moderately, emerging as a highly favorable choice for foreign companies seeking to expand and diversify their operations.     📌 The Index of Industrial Production (IIP) increased by 1%.  📌 The average Consumer Price Index (CPI) experienced a 3.2% increase primarily driven by certain localities raising the prices of medical services, and tuition fees, and the continued rise in domestic rice prices linked to export rice prices. Meanwhile, the inflation rate remained stable at 4.3%.  📌 Vietnam recorded a trade surplus of about $25.8 billion. The total import-export turnover of goods hit $619.2 billion, posting a year-over-year decrease of 8.3%. Specifically, export value fell by 5.9% and import value by 10.7%.  📌 According to the Foreign Investment Department, Vietnam attracted $28.9 billion of registered capital, a 14.8% increase compared to 2022. The realized capital during this period is estimated to reach $20.3 billion, the highest recorded between 2018 and 2023. The number of new licensed projects increased by 58.1% year-on-year at 2,865 projects, worth $16.4 billion.  📌 Among 110 countries and territories that have invested in Vietnam, Singapore remained Vietnam’s leading country of foreign investment with nearly $5.15 billion, making up over 17.8% of the total FDI registered in the country.  📌Despite global concerns, the AHK World Business Outlook Fall 2023 survey highlights Vietnam’s increasing appeal for German companies. The survey emphasizes the influence of factors shaping local investments, with 50 percent recognizing the growth potential of the Vietnamese market as a pivotal consideration. 📌 Over the past 11 months, Germany initiated 28 FDI projects in Vietnam, investing over $341.5 million, showcasing a remarkable 410.1% YoY increase. 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

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 ...

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

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 Asian Development Bank (ADB) has just released its updated Asian Development Outlook for September 2023, revising Cambodia’s economic growth forecast for this year. While the forecast was slightly reduced from 5.5% to 5.3%, the report offers a multifaceted view of Cambodia's economic performance. Here are 5 key takeaways.👇 1️⃣ Industrial Slowdown 🏭: The ADB has revised the 2023 economic growth forecast for Cambodia down to 5.3% from the initial 5.5%. The main contributor to this change is the slower-than-expected growth in the industrial sector during the first half of the year. 2️⃣ Export Challenges 📉: Exports of garments, footwear, and travel goods experienced a steep drop, plummeting by 18.6% year-on-year in the first half of 2023. However, exports of other manufactured goods saw a promising rise, increasing by 22.9%. 3️⃣ Service Sector Resilience 📈: Despite industrial hiccups, the service sector’s growth forecast for 2023 has been revised upward from 7.3% to 8.0%, making it the most significant contributor to Cambodia's economic growth this year. 4️⃣ Foreign Direct Investment Surge 💰: FDI inflows showed remarkable resilience, rising by a staggering 41.6% year-on-year in the first half, reaching $2.3 billion and boosting Cambodia's gross international reserves to $18.4 billion. 5️⃣ Risks and Policy Adjustments 🚨: Despite the positive signs, challenges still persist, including reduced tourist arrivals and the threat of climate change. On the policy front, Cambodia plans fiscal consolidation starting in 2024 and raised the reserve requirement ratio for foreign currencies to 9.0%.

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...