Vietnam’s full-year growth expected at 3% in 2020: Standard Chartered

Standard Chartered expects Vietnam’s economy to grow by 3 per cent in 2020 and surge to 7.8 per cent in 2021. Rising consumption on improving sentiment, and faster manufacturing will drive growth in the last quarter of this year.



The forecast is highlighted in Standard Chartered’s recently published Global Research report entitled “Vietnam – Q3 disruption, but recovery remains intact”.

Vietnam is one of the few Asian economies to have registered positive growth so far this year, despite the second wave of infections. Improving services growth and infrastructure investment should help Vietnam outperform the rest of Asia, it said.

According to the latest macroeconomic report on Vietnam, a likely improvement in external demand in the fourth quarter should support manufacturing growth, forecast at roughly 7.3 per cent in full-year 2020. Both exports and imports are expected to increase as a result. Trade is likely to remain in surplus for the rest of 2020 as exports and imports move in tandem.

The study also forecasts that the State Bank of Vietnam (SBV) will remain accommodative in the near term to support growth./.