UOB Bank (Singapore) has forecasted a 6% increase in Vietnam’s GDP for the second quarter. The positive outlook is based on data until the end of May, which indicates that the country’s growth trajectory is on track.

Indicators such as the Purchasing Managers’ Index (PMI) and the Index of Industrial Production (IIP) have shown positive trends in recent months. The PMI reached 50.3 last month, marking the fourth consecutive increase in five months. Additionally, the IIP saw a 6.8% growth in the first five months of the year compared to the same period in 2023. Export numbers have also been strong, with double-digit growth reported last month.

UOB Bank noted that Foreign Direct Investment (FDI) has increased by 7.8% since the beginning of the year, reaching $8.3 billion, the fastest growth in the five-month period since 2018. This reflects investors’ continued trust in Vietnam’s political stability, economic value, and competitiveness.

The bank highlighted positive developments in domestic economic activities, specifically in retail sales of goods and consumer service revenue despite challenges such as the strength of the USD affecting the VND exchange rate. UOB forecasts a recovery in the dong in