HANOI - Vietnam is set to achieve a 6% growth in its gross domestic product (GDP) for the year 2024, a target that aligns with the projections made by HSBC (LON:HSBA) and the expectations of the National Assembly. The Southeast Asian nation is experiencing an economic upswing, buoyed by substantial foreign direct investment (FDI) inflows, which saw $36.6 billion registered and $23.2 billion implemented in the preceding year.
The country's economic growth is being propelled by a robust services sector and a strong manufacturing base, especially in the electronics segment. This has been instrumental in cementing Vietnam's role in the global technology supply chain.
China has emerged as a top investor in Vietnam's technology sector, overtaking traditional leaders like Japan and South Korea. This surge in investment is a testament to Vietnam's growing importance as a hub for tech manufacturing.
Additionally, Vietnam's adoption of a global minimum tax rate of 15% for large corporations is anticipated to bolster its tax revenue streams. This move is part of a wider international effort to ensure that multinational enterprises pay a fair share of taxes.
While the economic forecast is positive, Vietnam still faces challenges such as trade volatility and inflation. However, inflation is expected to remain at a moderate level, which may help stabilize the economy amidst global uncertainties.
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