Vietnam Macro report April 2024:

• In April, the Vietnamese economy continued to show positive signs of growth. This is the result of the government’s relentless efforts in promoting investment disbursement activities, improving the business environment, and refining legal frameworks and institutions.
• However, there are still challenges arising from unfavorable global conditions. The Fed is maintaining high interest rates compared to before to curb inflation, and conflicts and instability in the Middle East between Israel and Iran are causing global oil prices to rise, putting pressure on Vietnam’s macroeconomic policies.
• On the other hand, China’s economy has surpassed GDP growth expectations, reinforcing the views of some major institutions such as Goldman Sachs and HSBC AM that the country’s economy hit bottom by the end of 2023 and is now in a recovery trend. With the Chinese government’s commitment to supporting its real estate market, there may be positive spillover effects for Vietnam due to the similarity in policies and mechanisms between the two countries.
• For Vietnam, the GDP in Q1/2024 reached the highest growth compared to the same period in previous years since 2019, boosting confidence in achieving the annual growth target of 6.0-6.5%. The acceleration in Q1 came from the strong growth momentum in the Industrial and Service sectors, while the Agriculture, Forestry, and Fisheries sector continued to grow but at a slower pace.