Standard Chartered: Vietnam's GDP growth forecast of 3% in 2020 and 7.8% in 2021

According to Standard Chartered Bank's report "Vietnam - interrupted growth in Q3 but stable recovery prospects", Vietnam's GDP growth will reach 3% in 2020 and reach 7.8% in 2021.

According to Standard Chartered Bank's Asia Regional Economist, Mr. Chidu Narayanan, Vietnam is among the few economies in Asia to record positive growth this year, despite the effects of the second wave of Covid-19.

At the same time, thanks to the recovery of domestic economic activity along with market sentiment, growth in Q4 will increase. Investment in infrastructure and the growth of the service sector will also improve, from which Vietnam can achieve a growth rate that is superior to other economies in the region. Mr . Chidu Narayanan said: "We maintain a positive view on Vietnam's economic prospects in the medium and long term."

In addition, by Q4, Standard Chartered forecasts that the demand of the world market is likely to improve and be promoted. The growth of the manufacturing sector in 2020 is estimated at 7.3%. Accordingly, import and export activities will also increase and continue to create a trade surplus this year.

Regarding FDI, Standard Chartered forecasts that this year, although declining in newly registered FDI inflows, will still reach the highest level of 13 billion USD. Factors such as unstable world demand and gloomy investment sentiment will affect FDI inflows in the medium term.

Although it is benefiting from the trend of shifting the manufacturing sector in the context of escalating geopolitical tensions, capital inflows into Vietnam are still forecast to be lower than in previous years. However, support measures from the Government as well as the shift of non-high-tech manufacturing activities will support promoting FDI inflows into Vietnam.

~According to the Economic Rhythm~