The forecast was made after the Vietnam General Statistics announced that Vietnam's GDP in the first quarter reached 5.66%, the best result in the 2020-2023 period.

HSBC’s report says that while near-term trade is about to take off again, long-term FDI prospects remain a bright spot of Vietnamese economy. While Vietnam is set to see better growth prospects this year, its GDP in the first quarter of the year expanded by a slower-than-expected pace of 5.7% year-on-year. But Vietnam remains firmly on a rebound path, led by better trade prospects, said HSBC.

HSBC economists kept their yearly growth forecast unchanged at 6.0% for 2024, but have tweaked their quarterly forecasts, accounting for a stronger pick-up in activities in the second half of the year.

Meanwhile, UOB forecasts that Vietnam's economic outlook this year is very positive. Vietnam's production for export is increasing, in addition to the bright future of foreign direct investment.