Vietnam’s Economy on Track for Strong Growth in Second Half of 2024: HSBC Report

Vietnam’s Economy Expected to Grow Strongly in the Second Half of the Year

Vietnam is expected to experience strong growth in the second half of the year, driven by the recovery of the global electronics cycle and positive foreign direct investment (FDI), according to a report by HSBC Global Private Banking Services Division. The country continues to show recovery, with expanding production levels, particularly in the electronics sector. Electronics exports, led by consumer electronics, have been performing well, with Samsung’s Galaxy S24 phone line expected to further improve results.

One of the factors contributing to Vietnam’s economic growth is its status as a top choice in Southeast Asia for the “China + 1” strategy. Many companies are establishing operations in the country due to its competitive labor costs and access to various markets through free trade agreements. The stock market in Vietnam has been one of the better performers in Asia, with low valuations and steady corporate profit growth.

HSBC raised its GDP growth forecast for Vietnam for the last two quarters of the year to 6.2% each. The bank expects the country’s economy to expand by 6% for the whole of 2024. Despite these positive projections, inflation and currency volatility remain concerns, with