Business

US consulting firm optimistic about Vietnam’s economic outlook

The Southeast Asian economies remain steadfastly resilient and delivered credible economic growth in the second quarter of 2024, with Vietnam and the Philippines continuing as the region’s top two performing economies, growing at 6.9% and 6.3%, respectively, according to McKinsey & Company, a US multinational strategy and management consulting firm.

Garment production at May 10 Corporation in Sai Dong, Long Bien district, Hanoi. (Photo: VNA)
Garment production at May 10 Corporation in Sai Dong, Long Bien district, Hanoi. (Photo: VNA)

Hanoi (VNA) - The Southeast Asian economies remain steadfastly resilient and delivered credible economic growth in the second quarter of 2024, with Vietnam and the Philippines continuing as the region’s top two performing economies, growing at 6.9% and 6.3%, respectively, according to McKinsey & Company, a US multinational strategy and management consulting firm.

In its recent report, the company wrote that Vietnam’s economy accelerated in the second quarter, as its GDP growth rose by 6.9% compared to 5.6% in the previous quarter, with the industry and service sectors being the largest contributors.

Private consumption further improved and is poised for a strong expansion throughout 2024, while the export sector continued its growth momentum following a recovery in global demand, supported by key sectors including smartphones, electronics, and textiles.

The report also highlighted that FDI achieved significant growth this quarter, further cementing Vietnam as a credible investment destination. However, it noted inflation continued to rise, driven by wage hikes that put pressure on the central bank’s policy rate stance.

According to the firm, FDI is one of Vietnam’s key highlights of the quarter, with disbursed FDI recorded at 6.2 billion USD in the second quarter, up from 4.6 billion USD in the first quarter. Meanwhile, total FDI registered reached 15.2 billion USD in the first half of 2024, an increase of 13.1% over the same period last year.

The strong performance could spur the country’s economy in the immediate quarters, and it supports Vietnam’s position as an important investment destination for foreign businesses as they look to diversify their global supply chains, it stressed./.

VNA
#Southeast Asian economies #McKinsey & Company #Vietnamese economy Vietnam ASEAN
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