US consulting firm optimistic about Vietnam’s economic outlook
The Southeast Asian economies remain steadfastly resilient and delivered credible economic growth in the second quarter of 2024, with Vietnam and the Philippines continuing as the region’s top two performing economies, growing at 6.9% and 6.3%, respectively, according to McKinsey & Company, a US multinational strategy and management consulting firm.
Garment production at May 10 Corporation in Sai Dong, Long Bien district, Hanoi. (Photo: VNA)
Hanoi (VNA) - The Southeast Asian economies remain steadfastly resilient and delivered credible economic growth in the second quarter of 2024, with Vietnam and the Philippines continuing as the region’s top two performing economies, growing at 6.9% and 6.3%, respectively, according to McKinsey & Company, a US multinational strategy and management consulting firm.
In its recent report, the company wrote that Vietnam’s economy accelerated in the second quarter, as its GDP growth rose by 6.9% compared to 5.6% in the previous quarter, with the industry and service sectors being the largest contributors.
Private consumption further improved and is poised for a strong expansion throughout 2024, while the export sector continued its growth momentum following a recovery in global demand, supported by key sectors including smartphones, electronics, and textiles.
The report also highlighted that FDI achieved significant growth this quarter, further cementing Vietnam as a credible investment destination. However, it noted inflation continued to rise, driven by wage hikes that put pressure on the central bank’s policy rate stance.
According to the firm, FDI is one of Vietnam’s key highlights of the quarter, with disbursed FDI recorded at 6.2 billion USD in the second quarter, up from 4.6 billion USD in the first quarter. Meanwhile, total FDI registered reached 15.2 billion USD in the first half of 2024, an increase of 13.1% over the same period last year.
The strong performance could spur the country’s economy in the immediate quarters, and it supports Vietnam’s position as an important investment destination for foreign businessesꦓ as they look to diversify their globဣal supply chains, it stressed./.
The global trend of utilising co-branded credit cards is opening doors for Vietnamese businesses to enter the global market, meeting the rising expectations of consumers, experts said.
2023 continues to be a tough year for the world economy as COVID-19 pandemic has still taken heavy tolls while a series of new challenges have emerged, including geopolitical conflicts, tight monetary policies in major economies and world economic slowdown.
Some banks, including MSB, Sacombank, VIB and Saigonbank, are expecting extraordinary revenues worth up to trillions of Vietnamese dong from debt recovery this year. In a recent report, Vietcombank Securities Company (VCBS) said Vietnam Maritime Commercial Joint Stock Bank (MSB) this year will record extraordinary income growth from bad debt recovery and capital divestment of its financial company TNEX Finance.
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.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
