According to UOB experts, with the surprisingly strong performances in the past three quarters, Vietnam’s economy expanded 7.09% last year, from 5.1% in 2023.
The manufacturing and services sectors continued to be the main drivers of growth, while external trade maintained its strong pace through 2024. The upswing in semiconductor sales since mid-2023 suggests that, momentum is likely to continue further in the next 1-2 quarters.
Based on the disciplined approach to its fiscal stance and the way public expenditure has been disbursed so far, the 8% goal seems overly ambitious but there is still merit in hitting the target, UOB experts said.
The bank expects positive momentum from domestic drivers such as production, consumer spending, and visitor arrivals to contribute to the activities, especially in the first half of 2025.
However, uncertainty on trade outlook will be a major risk for Vietnam in the second half, with its rising dependence on exports./.
