In its recent report, the bank’s economists said Vietnam’s economic growth momentum has been relatively strong, with improvement recorded in multiple sectors, such as imports-exports, retail sales, real estate, tourism, construction, and manufacturing.
Trade recovery and increased business activities and foreign investment will be the main boosters for 2025 and beyond, they added.
The government’s push for stronger economic growth may help maintain low interest rates in the near future, and Fed moves will also be key to the State Bank of Vietnam’s monetary policy decisions.
Standard Chartered forecasts Fed rate cuts, which should lead to a softer USD bias over the next few quarters, will result in a USD/VND exchange rate at 24,500 by the end of 2024 and 24,300 by mid-2025./.
