The economy in the second quarter of this year showed positive signs of recovery although exchange rate and inflation risks will remain in the coming quarters. Economic acceleration in Q2 Vietnam’s GDP in the second quarter of this year expanded by 6.93%, leading to the economy growing by 6.42% in the first half of the year. This result beat the expectations of almost all domestic and international organizations. Earlier forecasts put Q2 growth at below 6.5%. For instance, BIDV projected a 5.9-6.3% increase, UOB forecasted a 6% rise, and Standard Chartered had the lowest prediction at a mere 5.3%. The higher-than-expected Q2 growth stemmed from a robust recovery in the processing and manufacturing sector as new orders increased and the output of key industrial products picked up. Overall, the index of industrial production (IIP) rose by 9.5% in Q2. The processing and manufacturing sector, which holds a significant proportion of the industrial sector, grew by 10.8%. This is a considerable improvement compared to the recent quarters. With the annual growth target for 2024 set at 6-6.5%, and after the outcome of Q1, the Ministry of Planning and Investment had updated the growth scenarios for the remaining quarters to 5.85-6.32% for […]
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