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Workers process tra fish for export at a factory of Sao Mai Group. (Photo: VNA)

Vietnam back as ASEAN’s growth star: HSBC

Vietnam has regained its position as the “growth star” of the Association of Southeast Asian Nations (ASEAN), said the Hong Kong-Shanghai Banking Corporation (HSBC) when evaluating Vietnam’s economic development in 2024.

The website fibre2fashion.com, citing HSBC's article titled ‘2024 - a look back at ups and downs’, reported that after a challenging first quarter, Vietnam's economic outlook has turned more positive as the recovery continued to recover throughout 2024. Specifically, growth improved and surprised on the upside, rising to 6.9% and 7.4% in the second and third quarters, respectively. Therefore, HSBC has raised its growth forecast for the country this year to 7% from the earlier projection of 6.5% while maintaining its growth forecast for 2025 at 6.5%.

HSBC noted that the recovery in the external sector has started to broaden out beyond consumer electronics, although the domestic sector remained relatively muted despite seeing incremental improvements.

Manufacturing and trade showed resilience and continued to lead the recovery despite concerns that the impact of Typhoon Yagi would weigh on growth.

Vietnam continued to attract foreign direct investment (FDI) as fundamental prospects remain positive. Although growth in newly registered FDI moderated in the third quarter of 2024, sectors beyond manufacturing like real estate and energy saw increases in investment, cited VNA.

Existing investors continue to make commitments, supporting Vietnam in expanding manufacturing capabilities, according to the article.

A total of 21.68 billion USD was disbursed, up by 7.1% year on year. This is the third consecutive year Vietnam's FDI disbursement has exceeded 20 billion USD. Intra-ASEAN investments are leading the way, making up 40% of inflows to date.

Dien Bien promotes cooperation with three northern provinces of Laos

Vietnam’s northern province of Dien Bien and three Northern Laos provinces - Phongsaly, Luang Prabang, and Udomxay - have recently signed an agreement, outlining future cooperation orientations for 2025-2027.

The agreement spans nine key areas, including promoting cooperation in the areas of economy, investment, trade, construction, transportation, digital transformation and communications, agriculture - forestry, education - training, health care, culture, tourism, and social affairs.

Both sides will strengthen cooperation to ensure national defense, security, and judicial activities; and people-to-people diplomacy.

The agreement was signed during talks in Dien Bien province on December 25 between leaders of the four provinces, according to VOV.

Dien Bien and three Lao provinces ink cooperation agreement for 2025-2027. (Photo: nhandan.vn)

Welcoming delegates from the three northern provinces of Laos to the talks, Tran Quoc Cuong, secretary of the Dien Bien Provincial Party Committee, affirmed that the meeting helped strengthen the friendly relations and close cooperation, contributing to nurturing the great friendship, special solidarity, and comprehensive cooperation between the two Parties and states of Vietnam and Laos.

He recalled that the parties have effectively implemented the 2022-2024 agreement, by regularly exchanging information and updates on the situation; showing interest in important political and social affairs events of each party; and facilitating cooperation in various fields.

The parties have held regular dialogues and shared experiences in Party building, national defense-security and judicial activities, economic development, cultural- and people-to-people exchanges in the border areas. They have also supported each other through providing training and capacity-building skills for officials and armed forces.

Sharing the views, the leaders of the three Lao provinces all affirmed that the results achieved in the past three years have contributed significantly to the overall success of each province in economic development, ensuring national defense and security, and maintaining a stable and peaceful border between the two sides.

ADB maintains positive outlook for Vietnamese economy in 2025

The Asian Development Bank (ADB) has maintained a positive outlook for Vietnam’s economic growth in 2025, by raising its growth forecast for the economy to 6.6%, up from the 6.2% forecast made in September.

ADB Country Director for Vietnam Shantanu Chakraborty told the government portal in a recent interview that the revision was based on the country’s sound performances in trade, manufacturing, and investment, including the foreign direct investment, supported by global currency adjustments and moderate global commodity prices.

Chakraborty stated that Vietnam is striving to become a high-income country by 2030, a highly ambitious goal that requires an average annual growth rate of 7%. To make up for the lower growth during the COVID-19 pandemic, the government’s 8% growth target for 2025 is entirely reasonable and will contribute to Vietnam’s goal for 2030.

The economy will continue to grow steadily due to improvements in the investment environment, strengthened infrastructure connectivity, and the promotion of key industries such as information technology, manufacturing, and processing. Furthermore, its continued engagement in free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic partnership (RCEP) and the EU-Vietnam Free Trade Agreement (EVFTA) will create opportunities to boost exports and further integrate into global supply chains.

However, he reminded that Vietnam should prioritize not only the economic growth rate but also the quality of growth, as the country’s growth foundations need further strengthening. Therefore, this growth target (8%) should be seen as a guiding direction for the government’s efforts to promote economic growth in 2025.

Regarding the challenges for the local economy in 2025, ADB Vietnam Country Director pointed out that ongoing conflicts in the Middle East and the Russia-Ukraine conflict would continue to disrupt supply chains, VOV reported.

ADB Country Director for Vietnam Shantanu Chakraborty (center) at a recent press briefing in Hanoi talking about Vietnam's economic prospects after the bank released a new edition of the Asian Development Outlook (ADO).

Considerable economic uncertainties in 2025, though they could have a modest impact on the Vietnamese economy, could still affect global trade and investment flows from the second half of 2025, leading to lower growth in subsequent years. In addition, Vietnam faces other challenges, regarding the quality of infrastructure, the impact of climate change, and labour shortages.

He therefore suggested that Vietnam boost public investment and supportive fiscal and monetary policies to further stimulate domestic demand, considering them additional growth drivers. He also recommended that the country focus on enhancing the skills of its workforce and address the growing labour shortages.

In the context of ongoing global economic instability and risks, Vietnam should diversify its growth drivers in 2025 and make stronger efforts to effectively implement fiscal stimulus measures, especially public investment in infrastructure, while maintaining supportive monetary policies to foster growth, he said.

Da Nang among best places to visit in Asia in 2025: UK publication

The central coastal city of Da Nang has been recognised as the only representative from Vietnam included in travel publication Time Out magazine’s prestigious list of the top eight travel destinations in Asia for 2025.

The UK-based travel publication commended Da Nang, which occupies the third position in the ranking of the most desirable locations to visit in Asia, for its unspoiled charm, diverse recreational offerings, and rich culinary experiences.

Nestled between the Son Tra Mountain and the East Sea, Da Nang has long been a favored beach destination for regional travelers.

A visitor relaxes at Yen Retreat in Nam Yen village, Hoa Bac commune, Da Nang, which was named one of Asia's top tourist destinations for 2025 by the UK-based travel publication Time Out. (Photo: VNA)

My Khe beach in particular has been recognised globally as one of the most beautiful beaches on the planet.

While historically celebrated for its relaxed atmosphere, the coastal gem is swiftly evolving, enhancing its dining and nightlife scene to rival those of Ho Chi Minh City and Hanoi.

The London-based travel publication recommended that those seeking adventure rent a motorbike and traverse the scenic route through Hai Van Pass to Hoi An, a popular ancient town renowned for its vibrant lanterns and well-preserved architecture.

Leading the list of travel destinations in Asia for 2025 is Sumba, an untouched island in Indonesia celebrated for its idyllic beaches.

Following closely in second place is Siargao Island, a well-known haven for surfing enthusiasts in the Philippines, according to Time Out.

Storm Pabuk weakens into tropical depression off Khanh Hoa-Binh Thuan coast

Storm Pabuk, the 10th named storm of the year, has weakened into a tropical depression as it moves west-southwest over the waters off Khanh Hoa and Binh Thuan provinces, bringing heavy rain and strong winds.

Storm Pabuk, the 10th storm of the year, has weakened into a tropical depression over the offshore areas between Khanh Hoa and Binh Thuan provinces, according to the National Center for Hydro-Meteorological Forecasting (NCHMF).

As of 10 a.m. on December 25, the tropical depression’s center was located off the coast of Khanh Hoa to Binh Thuan.

The strongest winds near the center reached level 7 (50-61 km/h) with gusts up to level 9.

The system is moving west-southwest at 10-15 km/h and is expected to further weaken into a low-pressure area within the next 12 hours as it approaches the coastal waters from Binh Thuan to Bac Lieu.

The tropical depression is generating strong winds of level 6-7, with gusts up to level 9, and rough seas with waves reaching 2-4 meters high, cited VNN.

Storm Pabuk has weakened into a tropical depression over the waters off Khanh Hoa and Binh Thuan. Source: NCHMF.

Affected areas include the southwestern part of the central South China Sea, and coastal waters from Khanh Hoa to Ba Ria-Vung Tau, including the Phu Quy Island district.

These conditions pose risks of thunderstorms, waterspouts, strong winds, and high waves to vessels operating in these zones.

Additionally, heavy rain has been recorded from Quang Tri to Phu Yen provinces, with localized downpours exceeding 40mm in places such as Sa Huynh (Quang Ngai, 41.8mm) and Dai Lanh (Khanh Hoa, 43.8mm).

Through today and tonight, central and south-central provinces are expected to experience continued rain, ranging from 10-30mm, with localized areas receiving over 60mm.

Thunderstorms may bring risks of tornadoes, lightning, and strong gusts.

Heavy rainfall could cause flash floods in small rivers and streams, landslides on slopes, and urban flooding in low-lying areas.

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