Vietnam’s economy to accelerate next year

Vietnam’s economy is forecast to accelerate over the next 12 months as global demand picks up and the country gradually resolves its domestic challenges.

The US’s S&P Global Ratings affirmed its BB+ long-term and B short-term sovereign credit ratings on Vietnam, with a stable outlook on the long-term rating.

The ratings reflect the country’s strong economic growth outlook, moderate government debt levels, and generally sound external position.

As multi-national conglomerates diversify their operations in the region, Vietnam is likely to attract more foreign direct investment to its export manufacturing sector over the next several years.

Vietnam’s economy is forecast to grow by 5.8% this year, after cooling to 5% in 2023. The upcycle in the semiconductor industry is expected to boost Vietnam’s growth, as exports from the industry increase.

Cross-border travel is recovering, including a surge in Chinese tourists. Domestic demand is also recovering, while public investment has been gradually accelerating over the coming years.

In the next three to four years, Vietnam’s GDP growth is expected to return to its long-term trend of 6.5%-7.0%./.