WB: Vietnam’s economy forecast to grow 6.1% in ’24

Vietnam’s economy is projected to accelerate in 2024, fuelled by a resurgence in manufactured exports and tourism, as well as a rebound in consumption and business investment, according to a report from the World Bank released on Monday.

The report forecasts a growth rate of 6.1 per cent in 2024, followed by 6.5 per cent in both 2025 and 2026, an improvement from the five per cent growth recorded last year, the report, titled Reaching New Heights in Capital Markets, added.

While the Vietnamese economy has shown resilience in the face of global challenges, the report notes that it has not yet fully recovered to pre-pandemic levels.

The World Bank emphasises the importance of enhanced public investment to stimulate short-term growth and address infrastructure gaps in areas like energy, transport, and logistics, which are hindering economic development.

The report also highlights concerns about bank asset quality, with rising non-performing loans (NPLs) requiring close monitoring by authorities.

Sebastian Eckardt, World Bank East Asia and Pacific Practice Manager for Macroeconomics, Trade, and Investment, stated that Vietnam’s economy has benefited from the rebound in export demand during the first half of the year.

To sustain this growth momentum, the government should implement deeper structural reforms, increase public investment, and carefully manage emerging financial risks, Eckardt noted.

Attribution: World Bank report