Macro/ Strategy

Second strongest GDP growth in 2Q2024 in the last 17 quarters.

Estimated GDP growth in 2Q2024 was +6.93%YoY and for the first half of 2024, GDP is estimated to expand by +6.42%YoY. The reading was the second strongest GDP growth in the last 4 years.

Production was recovered, fueled by the acceleration in new orders.

The Index of Industrial Production (IIP) in 06/2024 was accelerated to +10.92%YoY. For the 1H2024, accumulative IIP is estimated to expand by +7.54%YoY.

Meanwhile, Vietnamese Purchasing Managers’ Index (PMI) was jumped to 54.7 in June-2024.

Monetary policy is facing challenges but the pressure likely to loosen at end of the year.

As The State Bank of Vietnam (SBV) conducts a diverge monetary policy compared to FED, aiming to support the economy, VND have been depreciated against the USD. However, as FED will end the tightening phase at the end of this year, the pressure on VND can soon start cooling down.