Vietnam economy shows signs of recovery: Citi

The seminar with the theme "Prospect for Recovery Amid a Dynamic Global Outlook" was held by Citi on Nov. 15 in HCMC to provide the bank’s corporate clients with updated insights into the economic and investment trends in Vietnam.

Arman gave his key presentation at the event, reaffirming that industrial production has started rebounding in both export-oriented industries like electronics, textiles, and footwear, and domestically oriented industries including metals and cement.

Citi economist Helmi Arman (R) shares his views on the local economy. Photo courtesy of Citi

The economist said that the most substantial shocks to both domestic and external demand seem to be in the past. Industrial output and investments in manufacturing are on an upward trajectory, laying the foundation for recovery, he said.

According to Helmi, Vietnam’s exports received a helping hand from China after its border reopening and the resulting recovery in retail sales. However, textile and footwear exports to the U.S. are still below last year’s peaks.

The tourism industry has not fully recovered either, he said, pointing out that international arrivals in October were 69% of pre-covid levels, with arrivals from China still quite low at 31%. Vietnam's pre-Covid tourism revenue was 3.6% of GDP.

He said the freeze in the real estate sector has passed, but supply-demand mismatches remain, and the recovery will take time.

"The current trends are supporting our optimism about Vietnam’s positive structural story. But although the foundation for recovery is visible, it is unclear how soon the economy could begin firing on all cylinders," Helmi said.

Vietnam Citi Country Officer Ramachandran A.S. asserted that Vietnam's resilient economy possesses the ability to navigate hurdles and continue a positive growth trajectory.

"Citi its commited to supporting the growth of the Vietnamese economy and of our clients operating within this dynamic landscape," said Ramachandran A.S..

Ramachandran A.S., Vietnam Citi Country Officer, delivers his opening speech at the seminar. Photo courtesy of Citi