According to RamC (Ramachandran) A.S., the country head of Citi Bank Vietnam, Vietnam appears to have successfully navigated its significant economic challenges from the previous year and is poised for a robust recovery.

Citi’s latest projections indicate Vietnam’s GDP growth ranging between 5-6%, slightly below the country’s target of 6-6.5%. Inflation is estimated at 3.5-4%, compared to the targeted range of 4-4.5%.

Ramachandran stated during a forum on Friday that Vietnam has surpassed the most substantial economic setbacks and is now prepared for a recovery this year.

Citi Vietnam economist Helmi Arman highlighted that the ongoing shift in the supply chain would bolster Vietnam’s exports and industrial production in 2024, with expectations of a recovery in exports after a roughly 5% decline last year.

While external demand may face challenges due to sluggish global GDP growth, Arman emphasized that Vietnam will continue to benefit from the ongoing supply chain restructuring, with its export capacities poised for expansion.

Citi predicts that garments, footwear, and electronics will remain key drivers of exports.

Anticipating abundant foreign direct investment inflows this year, Citi foresees Vietnam emerging as a new global manufacturing hub.

Citi expects a relatively modest recovery in the property sector this year, with signs of increasing demand, particularly in the social housing segment.

Despite a rising demand for credit, Vietnam still requires access to larger international funds for crucial energy and infrastructure projects, with a projected need of $135 billion over the next seven years for electricity production and transmission.