In the year 2024, Vietnam is poised to achieve a notable 6% growth in its Gross Domestic Product (GDP), aligning with projections from HSBC and the expectations set by the National Assembly. The Southeast Asian nation is currently witnessing an economic upswing fuelled by substantial Foreign Direct Investment (FDI) inflows, with the previous year registering $36.6 billion and implementing $23.2 billion.
The driving forces behind Vietnam’s economic growth include a robust services sector and a formidable manufacturing base, particularly in the electronics segment. This has solidified Vietnam’s position in the global technology supply chain. China has emerged as a significant investor in Vietnam’s technology sector, surpassing traditional leaders such as Japan and South Korea. This surge in investment underscores Vietnam’s increasing significance as a hub for tech manufacturing.
Furthermore, Vietnam’s adoption of a global minimum tax rate of 15% for large corporations is expected to enhance its tax revenue streams. This decision aligns with broader international efforts to ensure that multinational enterprises contribute a fair share of taxes.
Despite the positive economic forecast, Vietnam faces challenges such as trade volatility and inflation. However, the expectation is that inflation will remain at a moderate level, potentially contributing to economic stability amidst global uncertainties.