Vietnam's Economic Recovery Momentum to Continue in H2: UOB
Vietnam's economy demonstrated robust performance in the first half of 2024, with optimistic prospects for continued growth throughout the year, according to a recent report from Singapore-based United Overseas Bank’s (UOB) Global Economics & Market Research Unit.
Data from the General Statistics Office revealed that Vietnam's real GDP grew by 6.93 percent in the second quarter compared to the same period last year. This performance surpassed both the bank's and market expectations of six percent, outpacing the 5.87 percent growth in the first quarter of 2024, the 6.72 percent increase in the final quarter of 2023, and the 4.05 percent expansion in the same quarter last year. Overall, the Vietnamese economy expanded by 6.42 percent in the first half of this year, significantly higher than the 3.84 percent growth recorded in the first half of 2023.
“The robust outcome sets a positive tone for the rest of this year after a difficult and challenging 2023,” UOB remarked.
The manufacturing and service sectors continued to drive much of the business activity, while external trade maintained a strong pace in the second quarter. An upturn in semiconductor sales since mid-2023 suggests that this momentum could persist for the next 1-2 quarters.
Given the strong second-quarter performance, UOB expects the country's economic outlook to remain bright in 2024. The bank reaffirmed its growth forecast for Vietnam at six percent for the year, aligning with the Vietnamese government's growth target of 6.0-6.5 percent.
However, the revival of domestic spending has put additional pressures on consumer prices. Vietnam’s headline consumer price index (CPI) accelerated for the fifth consecutive quarter to 4.39 percent year on year in the second quarter, compared to 3.77 percent in the first quarter.
In summary, Vietnam's economic recovery is on a strong trajectory, with key sectors showing significant contributions to overall growth. Despite the challenges, the outlook remains positive, supported by robust performance metrics and ongoing momentum in critical industries.
