Standard Chartered: Vietnam's economy remains the fastest in ASEAN

10/8/2018 - 3:30:09 PM

Vietnam is likely to remain the fastest-growing ASEAN economy in 2018 and 2019, as in 2017, stated a new report released by Standard Chartered.

According to Standard Chartered, Vietnam's manufacturing sector is expected to see a second consecutive year of double-digit growth this year.

The Vietnam Economic Times quoted the report, entitled "Vietnam - Fast, not furious, growth,” by the British multinational banking and financial services company, forecasting robust GDP growth for Vietnam at 7% in 2018 and 6.9% next year, driven by strong FDI-supported electronics manufacturing and rising consumption.

Manufacturing and agriculture are likely to remain the primary growth drivers in the second half of the year, the report added.

Chidu Narayanan, economist for Asia at Standard Chartered Bank, said that Vietnam expanded by 7.1% in H1, moderating mildly in Q2 after a record 7.4% year-on-year growth in Q1, in line with the bank’s forecast.

"This is the first year since the global financial crisis that Q2 growth has been slower than Q1. We believe this is a sign of a focus on sustainable growth over the medium term. We expect H2 growth to remain robust, albeit mildly slower than in H1,” Narayanan said, adding that the bank remains positive on Vietnam’s growth in the medium term based on strong manufacturing activity, as FDI inflows to electronics manufacturing remain strong.

According to the latest report, manufacturing is predicted to record another year of double-digit growth and agriculture growth will continue its recovery in the second half, even as construction slows down due to more modest growth in the real estate sector.

Meanwhile, electronics export growth in 2018 is likely to remain robust, though lower than last year, leading to a trade surplus and supporting the overall growth of Vietnam.

The bank maintains its view that FDI inflows into Vietnam will stay strong in 2018 and the next two years, with a registered capital of US$17 billion each year. FDI inflows to the manufacturing sector, particularly electronics manufacturing, will remain high in the medium term.

The macro-economic report also expects steady growth in services to support overall growth in 2018, led by strong domestic trading activity. The services sector, which makes up close to 40% of the economy, is expected to grow strongly in the second half, after rising by a steady 7% year-on-year in the first half.

The rise of the business process outsourcing (BPO) sector, aided by a young, well-trained and low-cost workforce, will accelerate the growth of the service sector in the medium term, the document stated.

Source: NDO

Hoa Binh takes actions to connect markets, promote values of agricultural products

After more than four years of implementing a project launched by the Hoa Binh Party Committee’s Standing Board on developing agriculture and promoting product consumption linked with building new-style rural areas for the 2021-2025 period, the province’s industry and trade sector has made significant strides, greatly contributing to local socio-economic development.

Luong Son district is determined to achieve the targets of double-digit growth

Luong Son district has identified 2025 as the year for the accelerated breakthrough to successfully implement the socio-economic development plan for the 5-year period from 2021 to 2025. The district has been focusing on executing the plans and trying to achieve a GRDP growth rate of approximately 15%.

Issuing the certificates of the product safety in the supply chain for the establishments

Since the beginning of this year, under the direction of the Department of Agriculture and Environment, the Sub-Department of Agricultural, Forestry, and Fishery Product Quality Management has strengthened the integration of the professional activities to promote and guide the organizations and individuals in the production and trading of agricultural, forestry, and fishery products to comply with the legal regulations regarding the use of chemicals, pesticides and veterinary medicines in crop cultivation, livestock farming and aquaculture. They also provide guidance to processing and manufacturing establishments on keeping the records to trace the product origins and using food additives from the approved list according to the regulations.

Hoa Binh province reviews state budget revenue in first two months

Hoa Binh province saw a significant rise in state budget revenue in the first two months of 2025, heard a meeting chaired by Vice Chairman of the provincial People’s Committee Quach Tat Liem.

Young Thai ethnic woman brings traditional brocade to international market

Ha Thi Ha Chi, a 26-year-old graduate in law, has taken an unconventional path by returning to her hometown in Mai Chau district to establish the Tong Dau Cooperative, creating stable jobs for local women and bringing Thai ethnic brocade weaving to the global market.

Tan Vinh farmers strive to excel in production and business

As the Lunar New Year 2025 approached, pork prices surged, creating a profitable season for farmers in Tan Vinh commune, Luong Son district. Taking advantage of the rising demand, Can Minh Son, a farmer from Coi hamlet, sold over 30 pigs at 69,000 VND/kg, each weighing more than 100 kg. After deducting expenses, his family earned a profit of over 50 million VND.