Vietnam Is Well-Positioned to Capture an Increased Share of Global Production and Exports
The remark was made by an official from Standard Chartered Bank Vietnam in a interview by the Vietnam Government Portal.
Vietnam is well-positioned to capture an increased share of global production and exports, as it is well-integrated with global trade after signing multiple free-trade agreements (FTAs).
Looking at Vietnam’s economic performance in 2024, the manufacturing sector has experienced solid growth, and a relatively accommodative monetary policy may have also contributed to the economic recovery.
Referring to the highlight of Vietnam’s economy over the past year, she said, year-to-date credit growth was at 16.6 per cent as of November 30, higher than the 2013-2023 average (around 14.4 percent).
On the trade front, exports grew 11.4 percent in the first 11 months of 2024, while imports rose 16.4 percent; with electronics exports and imports continuing their recovery.
Foreign direct investment (FDI) appetite remains strong, as indicated by inward FDI flows. Disbursed FDI increased by 7.1 percent over the last 11 months of the year, while pledged FDI rose by 1 percent.
Regarding Vietnam’s economic prospects in 2025, it is forecasted to have a strong GDP growth of 6.7 percent for Vietnam in 2025, with growth easing from 7.5 percent in the first half to 6.1 percent in the second half.
To foster sustainable medium-term growth, Vietnam needs to step up its preparedness for natural disasters, diversify its economy away from manufacturing, and expand its FDI sources away from Asia.
Diversifying investment sources and enhancing the business environment will be critical for Vietnam to realize its potential and accelerate economic development in 2025.
According to her, the recent U.S. Federal Reserve System (FED) rate cuts were expected to support Asian currencies, including the VND. However, stronger-than-anticipated U.S. economic data has led to a less supportive environment for Asian FX markets. Trade policy uncertainties and inflation-inducing measures under Trump could further complicate currency stability in the region.
Vietnam’s balance of payments (BoP) is driven largely by goods trade and FDI; external-sector performance has stayed relatively solid, adding that an upward reversal in commodity prices would pose a risk to the external outlook.
Lower USD rates may help to reduce capital outflows, while a sustained trade surplus and strong tourism should support the VND.
