UOB Bank Predicts Optimistic Outlook for Vietnam’s GDP in Second Quarter

UOB Bank (Singapore) has predicted a 6% increase in Vietnam’s GDP for the second quarter, based on data up to May. This positive outlook is due to recent indicators showing a growth trajectory that is on track. Specifically, the Purchasing Managers’ Index (PMI) and the Index of Industrial Production (IIP) have shown positive trends in recent months.

The PMI reached 50.3 last month, marking the fourth consecutive increase in five months. Additionally, the IIP saw a 6.8% growth in the first five months of the year compared to the same period in 2023. Export numbers have also been strong, with double-digit growth reported last month.

Foreign Direct Investment (FDI) has increased by 7.8% since the beginning of the year, reaching $8.3 billion, which is the fastest growth rate for a five-month period since 2018. UOB Bank noted that this reflects investors’ continued trust in Vietnam’s political stability, economic value, and competitiveness.

The bank also highlighted positive developments in domestic economic activities, specifically in retail sales of goods and consumer service revenue. Despite challenges such as the strength of the USD affecting the VND exchange rate, UOB forecasts a recovery in the dong in