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Vietnam poised for 6% GDP growth in 2024, led by tech and FDI

EditorAhmed Abdulazez Abdulkadir
Published 01/13/2024, 05:01 AM
Updated 01/13/2024, 05:01 AM

HANOI - Vietnam is set to achieve a 6% growth in its gross domestic product (GDP) for the year 2024, a target that aligns with the projections made by HSBC and the expectations of the National Assembly. The Southeast Asian nation is experiencing an economic upswing, buoyed by substantial foreign direct investment (FDI) inflows, which saw $36.6 billion registered and $23.2 billion implemented in the preceding year.

The country's economic growth is being propelled by a robust services sector and a strong manufacturing base, especially in the electronics segment. This has been instrumental in cementing Vietnam's role in the global technology supply chain.

China has emerged as a top investor in Vietnam's technology sector, overtaking traditional leaders like Japan and South Korea. This surge in investment is a testament to Vietnam's growing importance as a hub for tech manufacturing.

Additionally, Vietnam's adoption of a global minimum tax rate of 15% for large corporations is anticipated to bolster its tax revenue streams. This move is part of a wider international effort to ensure that multinational enterprises pay a fair share of taxes.

While the economic forecast is positive, Vietnam still faces challenges such as trade volatility and inflation. However, inflation is expected to remain at a moderate level, which may help stabilize the economy amidst global uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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