The National Assembly sets targets of 6.0-6.5% growth in GDP, and 4,700-4,730 USD in per capita income for 2024 (Photo: VietnamPlus). Hanoi (VNA) – Vietnam’s economic growth is expected to be more positive in 2024, as the most difficult period on the journey to recovery from the COVID-19 pandemic is over, and Vietnam enjoys basic advantages from macro-economic stability.
This year, the world situation is forecast to continue developing complicatedly, with a lot of uncertainties.
However, many countries, including Vietnam, will have new motivations from opportunities to reduce inflation and interest rates, the gradual loosening of the financial and monetary policies, and and increase in consumer demand in some major markets around the world.
Nguyen Tran Minh Tri, a representative from the Institute of World Economics and Politics under the Vietnam Academy of Social Sciences, forecast that most economic growth indicators in 2024 will be more positive than in 2023.
Tri pointed out that Vietnam has basic advantages from macroeconomic stability, which is a bright spot in the global post-pandemic economic picture. The economy is gradually recovering, with GDP growth in the next quarter of 2023 being higher than that in the previous quarter.
Credit rating agency Fitch Ratings has forecast Vietnam’s growth in the medium term at around 7%, with many favourable signs.
In a recent report, the agency said Vietnam’s cost competitiveness, educated workforce compared with peers, and entry into numerous regional and global free trade agreements (FTAs) should bode well for the continued strong FDI inflow, particularly in the context of the ongoing global supply chain diversification.
The agency also upgraded Vietnam’s Long-Term Issuer Default Ratings (IDRs) to 'BB ', which it said reflects the country’s favourable medium-term growth outlook.
Consumption plays an important role in GDP growth in 2024 and 2025. (Photo: VietnamPlus) The International Monetary Fund (IMF) has predicted Vietnam's 2024 growth at approximately 5.8%, doubling the world average and being among the top 20 economies with the highest growth rates in the world.
Meanwhile, the Asian Development Bank has said that Vietnam would enjoy a 6% GDP growth this year. The Southeast Asian economy is expected to remain resilient and recover swiftly in the near future, driven by strong domestic consumption and supported by moderate inflation, accelerated disbursement of public investment, and improvement in trade activities.
The National Assembly has approved major targets for 2024, with GDP growth of 6%-6.5% and per capita income of 4,700-4,730 USD.
To that end, the Government has prioritised creating synergies and motivation, promoting growth associated with maintaining macro-economic stability, controlling inflation, and ensuring major balances.
Enterprises are speeding up the greening of production (Photo: VietnamPlus) Economist Assoc. Prof., Dr. Dinh Trong Thinh stressed the need to drastically and concertedly carry out measures to promote the growth drivers of the economy, maintain the macro-economic stability and the value of Vietnamese dong, and curb inflation.
According to the expert, the Government needs to keep a close watch on the international economic and financial situation, monitor and evaluate so as to harmonise the macro-economic policies, ensure the balance between controlling inflation and growth, between interest rates and exchange rates, between budget balance and growth support, and between public and foreign direct investment.
He advised enterprises to proactively streamline from management to production activities in order to reduce costs and product prices; implement good welfare regimes to attract and retain workers, especially highly skilled ones; and focus resources on innovating equipment and technology at lower costs while promoting domestic supply network links to reduce dependence on foreign countries, and increase the quality and reduce prices of products and services to take advantage of opportunities to dominate and consolidate market share./.
