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

Six-month industrial production index estimated to rise 20%

According to data from the Hoa Binh Provincial Party Committee, the industrial production index for the first six months of 2025 is estimated to have increased by 20% compared to the same period last year. This marks the highest year-on-year growth rate for this period since 2020.

Exports exceeded 1.1 billion USD in 6 months

In the first six months of 2025, Hoa Binh province’s export turnover was estimated at 1.145 billion USD, marking an 18.11% increase compared to the same period in 2024. Import turnover was estimated at $ 804 million, a 17.15% increase, which helped the province maintain a positive trade balance.

The effectiveness of professional models of association and group in Tan Lac district

The lives of the ethnic minority farmers in Tan Lac district have gradually improved thanks to the new directions in agricultural production. This is a testament to the collective strength fostered through the professional associations and groups implemented by various levels of the district’s Farmers’ Union.

Building the brand of Muong village clean food

With the motto the "product quality comes first,” after nearly one year of establishment and operation, Muong village’s Clean Food Agricultural and Commercial Cooperative, located in Cau Hamlet, Hung Son Commune (Kim Boi district), has launched reputable, high-quality agricultural products to the market that are well-received by consumers. The products such as Muong village’s pork sausage, salt-cured chicken, and salt-cured pork hocks have gradually carved out a place in the market and they are on the path to obtaining the OCOP certification.

Hoa Binh ethnic farmers join forces through collective economic models

In the past, the phrase "bumper harvest, rock-bottom prices" was a familiar refrain for Vietnamese farmers engaged in fragmented, small-scale agriculture. But today, a new spirit is emerging across rural areas of Hoa Binh province - one of collaboration, organisation, and collective economic models that provide a stable foundation for production.

Maintaining farming area codes: Key to bringing Hoa Binh farm produce to global market

Maintaining growing area codes and packing facility codes in accordance with regulations is a mandatory requirement for agricultural products to be eligible for export. Recently, the Department of Agriculture and Environment of Hoa Binh province has intensified technical supervision of designated farming areas and packing facilities to safeguard the "green passport" that enables its products to access international markets.