Vietnam's economic growth in Q3 this year is forecast at 5.1% according to Standard Chartered Bank, a rise from 4.1% in the second quarter, say local media reports.

The bank's recently released global research report entitled "Vietnam Macro: Q3 GDP to show ongoing recovery" revealed a minor improvement in September data compared to August, bolstered by retail sales.

According to the report's findings, the growth in retail sales this month is forecast at 8.2%, whilst exports will decline by 6.2% and imports by 7%.

Standard Chartered Bank maintained Vietnam's GDP growth forecast at 5.4% for the entire year, whilst the Southeast Asian country has set a target of 6.5%.

In addition, the bank forecasts industrial production growth to rise by 3.2%.

"As the economy is recovering, we will no longer be so dependent on monetary policy," Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered Bank, was quoted as saying by local media.

"While easing price pressures should allow policymakers to focus on growth, renewed concerns about an inflation rebound in H2 could deter such a move. With the economic recovery starting to gain momentum, there should be less need for monetary policy support," he went on to add.

The country's GDP growth between April and June this year was reported at 4.14%, a rise from 3.32% in the first quarter, according to the General Statistics Office.

It posted a GDP growth of 3.72% in the first half of 2023, the second lowest within the same period between 2011 and 2023.