Investors Show Sound Confidence in Vietnam’s Economic Outlook
The company’s Deputy Managing Director Troy Griffiths said that Vietnam’s economic outlook for 2024 is positive, with forecast GDP growth of 5.5% to 6.5%, placing the country among the top 20 fastest-growing economies globally. Foreign direct investment (FDI) inflows reflect robust growth, with newly registered FDI increasing 58% year-over-year, highlighting sound investor confidence and a vibrant industrial sector, he said.
The Asian Development Bank, the International Monetary Fund (IMF), and the World Bank forecast that Vietnam’s GDP growth in 2024 will reach from 5.5% to 6.5%. According to the IMF, Vietnam will be one of the fastest-growing economies in the world by 2024, on par with countries like India and the Philippines. By the end of March 2024, Vietnam’s GDP is estimated to increase by 5.66% over the same period in 2023, higher than the growth rate of the first quarters in the 2020-2023 period. The Savills APIQ report forecasts that Vietnam’s semiconductor chip industry is expected to attract significant investment in 2024.
According to economic experts, Vietnam will benefit from the the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of the US including a 500 million USD grant to improve training in semiconductor, cybersecurity, and business environment globally. Lam Research, a leading semiconductor manufacturer in the US, planned to build a factory with a total investment of 1 to 2 billion USD in Vietnam.
In the industrial sector, Gelex Group and Frasers Property are cooperating to build industrial parks that meet the Leadership in Energy and Environmental Design (LEED) – a green building certification programme. Specifically, they started the Yen My Industrial Center project in the northern province of Hung Yen, providing 159,000 sq.m of flexible workshop.
In addition, the Dong Mai Industrial Park in the northeastern province of Quang Ninh with a 71,000sq.m ready-built factory is expected to be completed in the fourth quarter of 2024. Becamex IDC Corp has just signed an investment agreement with related units to implement a 5,000-ha industrial park project in the south-central province of Binh Thuan with a total investment capital of over 800 million USD.
Strong demand from foreign manufacturing and IT businesses will continue to support the office market in Hanoi and Ho Chi Minh City. It is expected that by the end of 2026, Grade A and B office supply in Ho Chi Minh City will increase by 200,000 sq.m, equivalent to an increase of 20% compared to the present. In Hanoi, an additional 220,000 sq.m is expected, 13% higher than the current area.
