Saturday, November 30, 2024 10:46:39 PM - Markets closed
VN-INDEX 1,250.46 +8.35/+0.67%
HNX-INDEX 224.64 +1.07/+0.48%
UPCOM-INDEX 92.74 +0.39/+0.43%
IMF forecasts VN's economic growth to reach 6.1 per cent in 2024
vietnamnews - 10/2/2024 11:02:18 AM
 (0 ratings. You must sign in to rate.)
Vietnam's economic growth is projected to recover to 6.1 per cent in 2024, supported by continued strong external demand, resilient foreign direct investment and accommodative policies.
 
 
 
Workers during a shift at a packaging factory in the northern province of Hung Yen. — VNA/VNS Photo
 
The Executive Board of the International Monetary Fund (IMF) concluded the 2024 Article IV Consultation with Vietnam.
 
According to their report, economic growth is projected to recover to 6.1 per cent in 2024, supported by continued strong external demand, resilient foreign direct investment and accommodative policies.
 
Domestic demand growth is expected to recover gradually as corporates navigate through high debt levels while the real estate sector will only fully recover over the medium term.
 
Inflation is expected to hover around the State Bank of Vietnam’s target of 4-4.5 per cent this year.
 
“Inflation picked up in 2024, driven mainly by rising food prices, though core inflation remained relatively low and stable,” IMF stated.
 
“The external current account posted a large surplus in 2023, at 5.8 per cent of GDP, mainly reflecting a significant contraction in imports.”
 
The IMF's executive directors commended the Vietnamese authorities’ swift actions to maintain macro-financial stability after the economic recovery from the pandemic faced domestic and external headwinds.
 
However, it noted that downside risks remain elevated.
 
Exports, a key driver for Vietnam’s economy, could weaken if global growth disappoints, global geopolitical tensions persist or trade disputes intensify. Given easy monetary conditions, if exchange rate pressures were to persist for longer, it could lead to a larger pass-through to domestic inflation.
 
“Persistent weakness in the real estate sector and corporate bond market could weigh more than expected on banks’ ability to expand credit, hurting economic growth and undermining financial stability,” the report highlighted.
 
Given these challenges, further efforts are required to safeguard macro-financial stability and deepen reforms to address vulnerabilities and ensure robust, green and inclusive growth over the medium term.
 
The IMF's directors noted that fiscal policy should take the lead in supporting economic activity if needed. In this context, they welcomed the authorities’ plans to speed up the implementation of public investment, which will require tackling bottlenecks and stressed the importance of expanding social safety nets to support the most vulnerable. They also recommended strengthening the fiscal framework and budget process and increasing revenue mobilisation over the medium term to support the ambitious development agenda.
 
According to the IMF, the authorities have effectively contained inflation risks. However, they stressed that monetary policy should continue to be cautious under a complex environment and limited policy space.
 
The IMF's directors also acknowledged the authorities’ swift actions to contain risks in the real estate and corporate bond market but urged more decisive action to tackle remaining vulnerabilities. This includes strengthening the insolvency framework, bolstering institutions and increasing transparency in the corporate bond market.
 
In addition, Vietnam has also made structural and climate reforms to achieve sustainable, green and inclusive growth. Accelerating the transition to upper-middle income status will require further efforts to improve the business environment, step up critical infrastructure and invest in human capital.
 
The latest Power Development Plan and the planned Emissions Trading System can help achieve Viet Nam’s climate goals and promote energy security, according to the IMF's directors. — VNS
 
Read original article here
 
 
Newer News
29/11 Nghe An approves US$590 million fabric factory investment from Singapore
29/11 Electrifying Hanoi: greening the capital with electric vehicles
29/11 Peru’s mega-port to open opportunities for Vietnam's import-export, logistics
29/11 M&A in Vietnam expected to be bustling in 2025
29/11 Vietnam’s auto industry solidifies its place in the global market
28/11 Rice export hits a fresh record of $5 billion
28/11 Wood exports poised to exceed target despite market challenges
28/11 VN to embrace a new internet era: VIA
28/11 VCCI proposes extending VAT reduction for first half of 2025
28/11 Cinnamon industry seeks to take advantage of trade deal to expand exports to the UK
Older News
02/10 Innovation: Revolutionising the economic growth
02/10 New Zealand-Da Nang to bolster in hi-tech links
01/10 PM Chinh applauds Meta's contributions to Vietnam-US ties
01/10 Cashew industry faces risk of trade deficit
01/10 Vietnam needs a comprehensive national green transition strategy
30/09 Green investment funds forecast to grow in Vietnam
30/09 As recovery continues, Việt Nam awaits further lift
30/09 5G will play key role in building a digital economy, experts say
30/09 Khanh Hoa draws Korean investors to green, sustainable industries
30/09 South Africa launches anti-dumping investigation on car and bus tyres from Vietnam
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,250.46 +8.35/+0.67%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.