Vietnam's economic growth is forecast to accelerate to 6.3% ahead in 2024 before reaching 7.0% in 2025, according to the latest projection made by global credit ratings agency Fitch Ratings.
The rating agency assessed that domestic fiscal and monetary policies have pivoted to provide growing support to the national economy.
Experts also stated that the Vietnamese economy’s medium-term fundamentals remain favourable and have sustained a period of economic expansion, thereby making positive business prospects for the banking sector.
According to statistics released by the rating agency, the country’s GDP growth slowed to 4.3% over the past nine months of the year amid weak external demand coupled with lingering headwinds in the domestic property sector.
At a conference organised by The Asset and Fitch Ratings which was recently held in Hanoi, insiders noted out that the nation have faced an array of challenges this year, from both internal and external factors.
According to details given by experts, the slowdown in the global economy, the prolonged effects of the COVID-19 pandemic, as well as the ongoing escalation of the conflict between Russia and Ukraine will continue to exert negative impacts on the Vietnamese economy moving forward.
Moreover, persistently high inflation weighs on national development, causing many central banks to tighten monetary policies and hike rates.
Despite the current period of economic turbulence, the Vietnamese economy is poised to recovery in the near future.
At the end of May Fitch Ratings also affirmed the country’s Long-Term Foreign-Currency Issuer Default Rating at 'BB', with a positive outlook. This reflects the nation’s strong medium-term growth prospects, supported by foreign direct investment (FDI) inflows, favourable demographics, and strong external liquidity.
Standard Chartered Bank has also maintained robust 2024 GDP growth forecast of 6.7% for Vietnam in its latest macro-economic updates about the Southeast Asian nation.
Meanwhile, the National Assembly (NA) on November 9 adopted a resolution on the socio-economic development plan for 2024, which sets a target of 6.0 - 6.5% growth in gross domestic product (GDP) for the year.
