Vietnam is poised for strong growth in the second half of 2024, driven by a rebound in the global electronics cycle and continued positive foreign direct investment (FDI), according to economists of HSBC Vietnam.
Vietnam is poised for strong growth in the last six months of 2024 (Photo: VietnamPlus)
Hanoi (VNA) - ܫVietnam is poised for strong growth in the second half of 2024, driven by a rebound in the global electronics cycle and continued positive foreign direct investment (FDI), according to economists of HSBC Vietnam.
HSBC Global Private Banking’s mid-year investment outlook report released on June 27 indicates expectations that factors such as improved global economic cycles, expanded profit growth, and central banks cutting interest rates will bring many investment opportunities.
According to the report, Vietnam is on a steady path to recovery, bolstered by the global electronics cycle.
In a recent survey, 60% of businesses operating in Vietnam responded that they plan to invest in technology and digitalisation of their existing business, with the focus on digital payments, e-commerce, and AI. Those companies believe that adopting and enhancing digital services will help them meet customers' expectations for digital convenience and improve efficiencies.
In this context, capital has become the lifeblood of innovative companies. Against that backdrop, HSBC has enhanced its offering to digital-economy companies, launching a dedicated 1-billion-USD ASEAN Growth Fund that can help finance platform companies with a proven track record in generating sustainable cash flows, even if they do not meet traditional financing criteria.
HSBC’s recent survey of businesses operating in ASEAN shows that 74% of whom intend to increase their investment in the region in 2024.
The acceleration of digitalisation in the region has been boosted by government programmes, from Singapore to Indonesia, Vietnam, Thailand, the Philippines and Malaysia.
Vistors in Hanoi (Photo: VietnamPlus)
Vietnam continues recovery path
According to HSBC experts, the latest Purchasing Managers' Index (PMI) of Vietnam continues to show an expansion in manufacturing.
Notably, electronics exports are performing exceptionally well. Meanwhile, the outlook for FDI remains strong due to Vietnam's appeal as an investment destination. Domestic spending presents a diverse picture, with tourism showing signs of recovery and being likely to achieve the goal of 17-18 million visitors this year.
However, the report said despite these positive trends, inflation remains persistent and is approaching the State Bank of Vietnam (SBV)'s ceiling of 4.5%. The Fed's delayed interest rate cuts have strengthened the US dollars in the short term, causing volatility for the Vietnamese dong.
According to HSBC, depending on global central bank directions, the SBV may maintain a cautious stance on its interest rate policy.
HSBC's report is also optimistic about Vietnam’s capital market, saying that the stock exchanges has been one of the better-performing markets in Asia so far this year.
James Cheo, Chief Investment Officer for Southeast Asia and India at HSBC Global Private Banking and Wealth said “Equity valuation is still undemanding. Corporate earnings remain resilient recovering from the trough in 2023.”
The equity market uptrend can be sustained if earnings remain strong, he added.
In late April, HSBC raised its GDP growth forecast for the last two quarters to 6.2% each. For the full year 2024, the bank predicts Vietnam's economy will expand by 6%, matching projections from the International Monetary Fund (IMF) and the United Overseas Bank (UOB)./.
Vietnam was the fastest growing digital economy in ASEAN in 2022 and 2023 and it is expected to maintain this position until 2025, with the number of smartphones users anticipated to reach 67.3 million by 2026, accounting for 96.9% Internet users.
Vietnam currently exports a broad range of agricultural products all over the world. Its key exports are rice, coffee, cashew nuts and fruits and vegetables, according to HSBC.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
