IMF Projects Vietnam’s Growth at Nearly 6% for 2024

The International Monetary Fund (IMF) has projected that the Vietnamese economy will expand by close to 6% in 2024. This growth is expected to be driven by a recovering export sector, robust foreign direct investment, and supportive government policies, according to a statement released by the IMF on June 26.

However, the IMF cautioned that exports, a critical driver of the Vietnamese economy, could weaken if global economic growth underperforms, geopolitical tensions persist, or trade disputes intensify.

“Domestically, persistent weakness in the real estate sector and corporate bond market could more significantly impact banks’ ability to expand credit than anticipated,” the IMF noted.

The IMF also warned that prolonged exchange rate pressures, coupled with easy monetary conditions, could lead to a higher pass-through to domestic inflation.

To sustain growth, the IMF emphasized the importance of increasing productivity, further investing in human and physical capital, and incentivizing private investment in renewable energy.