Vietnam economy to grow by 6% in 2024 with strong FDI inflows: HSBC

The country’s exports will receive a boost from the nascent recovery of the global trade cycle, they said.

The strength of the country’s economy this year would come from a combination of consumer and investment spending, James Cheo, chief investment officer, Southeast Asia and India, global private banking and wealth, HSBC, said.

“Inflation is fairly stable but there could be an upside risk from higher-than-expected energy or food prices, we think that Vietnam’s monetary authority will stay vigilant and keep policy rates on hold for this year. We forecast the Vietnamese dong to move towards VND 24,400 against the US dollar by the end of 2024,” Cheo was quoted as saying by a domestic media outlet.

The beginning of US Federal Reserve rate cuts in June this year, US soft landing, corporate earnings recovery and solid growth in Asia are expected to improve global risk appetite and investment outlook of equity and bond markets this year, according to HSBC Global Private Banking (HSBC GPB).

HSBC GPB has adopted a mild risk-on investment strategy for the next six months, with underweight on cash, mild overweight on US treasuries and global investment grade bonds and tactical overweight on hedge funds.

ALCHEMPro News Desk (DS)