S&P Global: Vietnam Achieves 2-Year High Growth Driven by Foreign Investment
S&P Global Reports Vietnam's Economic Growth
The latest report from S&P Global showcases Vietnam's robust economic performance, with a gross domestic product (GDP) growth of 7.4% year-on-year in the third quarter. This marks the highest growth rate in two years, driven by solid foreign investment and thriving export activities.
Factors Contributing to Growth
- Foreign Investment: Inflows have risen by 8.9% compared to last year, reaching US$17.3 billion.
- Exports: A remarkable 10.7% increase year-on-year signals a strong trade position.
- Industrial Production: Up by 10.8%, demonstrating the vitality of the manufacturing sector.
Challenges Amidst Growth
While the growth is commendable, Vietnam grapples with the aftermath of Typhoon Yagi, which caused significant disruption and an estimated property damage of US$3.3 billion. The International Monetary Fund (IMF) forecasts a GDP growth of 6.1% for the year, emphasizing the impact of geopolitical tensions on external demand, a key growth driver.
Inflation and Consumer Prices
- Inflation: Consumer prices increased by 2.63% year-on-year in September.
- Retail Sales: Growth of 7.6% indicates healthy consumer activity.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.