HANOI - Vietnam is poised to exceed its economic growth targets for 2024, with projections indicating a GDP increase of 6.8%-7.0%, surpassing the initial goal of 6.0%-6.5%. This information was part of a monthly investor report released by VietNam Holding Limited ("VNH"), detailing the country's economic performance and the company's activities for October 2024.
The report, prepared by Dynam Capital Limited, VNH's investment manager, highlighted Vietnam's continued economic resilience amid global uncertainties. The nation recorded a trade surplus of $23.3 billion for the first ten months of the year, despite a slowdown in electronics and wood products. The apparel and footwear sectors, on the other hand, have shown improvement.
Vietnam's government also announced its ambition to achieve GDP growth of 7.0-7.5% in 2025, with aims to be ranked 31st-33rd globally in terms of GDP by next year. Looking further ahead, targets for the period 2026-2030 are even more ambitious, with GDP growth aimed at 7.5%-8.5%.
General Secretary To Lam expressed confidence in Vietnam's trajectory, stating the country is entering an era of national advancement. His remarks reflect the Vietnamese leadership's commitment to socio-economic development through 2030.
VNH itself has seen success, winning awards for the best emerging market fund and outperforming the market index with a year-to-date return of 15.7%, compared to the market's 9.6%. Craig Martin, chair of Dynam Capital, noted in an interview that Vietnam's banking sector offers attractive investment opportunities due to its growth and value.
Despite potential shifts in global trade due to the new Trump administration, Vietnam's position as a manufacturing hub in Southeast Asia is expected to remain robust. The country has attracted significant foreign direct investment, with companies diversifying production away from China. Notably, nearly 40% of all ASEAN exports to North America are from Vietnam.
The semiconductor industry in Vietnam is also gaining prominence in the global technology supply chain, with companies like Samsung (KS:005930) and Intel (NASDAQ:INTC) increasing their investments in response to US restrictions on Chinese technology. This industry is expected to generate $100 billion in revenue by 2050.
The report concluded that despite external geopolitical and economic risks, VNH's fund is well-positioned for growth for the remainder of 2024 and into 2025. This summary is based on a press release statement from VietNam Holding Limited.
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