VIET NAM TO ENTER TOP 20 FASTEST GROWING ECONOMIES GLOBALLY IN 2024

The development prospects of the Vietnamese economy in 2024 are very positive and driven by substantial foreign investment, especially in high-tech industries, according to Savills Viet Nam's report on investment in the Asia-Pacific region in the first quarter of 2024.

Specifically, the report points out that the Asian Development Bank (ADB), the International Monetary Fund (IMF) and the World Bank (WB) have forecast that Viet Nam's GDP growth this year will reach from 5.5-6.5 percent.

This growth will help Viet Nam become one of the fastest-growing economies in the world this year and on par with Macau, India and the Philippines.

By the end of the first quarter of this year, Viet Nam's GDP was estimated to increase by 5.66 percent over the same period, the highest growth pace since 2020.

Besides, data published by the General Statistics Office (GSO) shows that total registered foreign direct investment (FDI) as of May 20 reached more than US$11.07 billion, an increase of 2 percent over the same period.

Of these, there are 1,227 licensed projects with a registered capital of US$7.94 billion, an increase of 27.5 percent in the number of projects and 50.8 percent in registered capital over the same period.

Deputy Managing Director at Savills Viet Nam, Troy Griffiths, commented that Viet Nam's economic outlook in 2024 is very positive, which will help the country enter the top 20 fastest-growing economies globally.

The semiconductor industry in Viet Nam will attract significant investment this year. In particular, Viet Nam will benefit from the CHIPS and Science Act (USA), including a grant of US$500 million to improve training in semiconductors, cybersecurity and the business environment globally.

Regarding the resort real estate sector, Savills Viet Nam forecasts that the number of tourists from the Asia-Pacific region will return to 2019 levels by 2025. In particular, Viet Nam is becoming increasingly popular as an ideal destination for tourists from India.

This reflects the tourism industry's strong recovery and opens up new development opportunities for the resort real estate market in Viet Nam.

Additionally, strong demand from foreign manufacturing and information technology businesses will continue to support the operational efficiency of the offices in Ha Noi and Ho Chi Minh City.

Increased investment from international companies in these industries will increase demand for office space. At the same time, it creates favorable conditions for the expansion and sustainable development of the office real estate market in the two largest cities in Viet Nam.

Source: VCCI