Overseas investment a boon to manufacturing sector

Overseas investment a boon to manufacturing sector

An increase in foreign investment in the manufacturing sector has been the driving force for Vietnam's solid economic growth, according to experts at Global and Vietnam Outlook 2025, organised by Standard Chartered Bank Vietnam in Ho Chi Minh City on January 20.

Tim Leelahaphan, senior economist for Vietnam and Thailand at Standard Chartered Bank, pointed out the main driver of Vietnam’s economic growth has been the increase in foreign direct investment (FDI), with manufacturing attracting the highest figure, followed by recoveries in the real estate, retail, industrial, export, and tourism sectors.

Tim Leelahaphan, senior economist, Vietnam and Thailand, Standard Chartered Bank

"We predict GDP growth of 6.7 per cent in 2025, with 7.5 and 6.1 per cent in the first and second halves respectively, driven by business expansion that could continue into the following year, with foreign investment playing a key role in driving growth," said Leelahaphan.

Standard Chartered Vietnam’s CEO and head of banking and coverage Nguyen Thuy Hanh emphasised Vietnam’s resilience as one of ASEAN’s most dynamic economies.

"Vietnam has, in recent decades, posted consistently high growth, even in the face of periodic challenges, transforming into a thriving upper middle-income economy. As an international bank with over 120 years in Vietnam, Standard Chartered is dedicated to driving growth, innovation, and sustainable development in this market," said Hanh.

Standard Chartered Vietnam’s CEO and head of banking and coverage Nguyen Thuy Hanh

Edward Lee, chief economist for ASEAN and South Asia at Standard Chartered Bank, noted that global growth is set to remain subdued, with GDP easing from 3.2 per cent in 2024 to 3.1 per cent in 2025.

"Tight monetary conditions, fiscal pressures, and geopolitical uncertainties may continue to impact global markets," he said.

Standard Chartered is the only international bank with a presence in all 10 ASEAN countries. Vietnam plays a vital role in Standard Chartered’s growth strategy, offering promising opportunities in retail, wealth, corporate, and priority banking, financial institutions, and trade.

With a presence across many of the world’s most dynamic markets, Standard Chartered brings the strength of its international expertise and experience in Asia, Africa, and the Middle East to bear in Vietnam, building a broad business that helps to develop the Vietnamese financial service sector.

VIR