Vietnam’s economy in the first six months of 2024
According to the General Statistics Office, Vietnam’s economy in the first six months of 2024 has shown significant improvements in growth quality, with a gradual reduction in broad-based growth drivers. Specifically, GDP increased by 6.42%; the agriculture, forestry, and fishery sector accounted for 11.55%; the industrial and construction sector accounted for 36.44%; the service sector accounted for 43.35%; and taxes on products minus product subsidies accounted for 8.66%.
The manufacturing and processing industry is the growth engine of the entire economy, with a growth rate of 8.67%; the consumption index for the processing and manufacturing sector increased by 10.8% compared to the same period last year (which saw a decline of 2.2%). The country saw nearly 119,600 new businesses established and returning to operation, an increase of 5.3%; meanwhile, 110,300 businesses exited the market, an increase of 18.4% compared to the same period in 2023. On average, 19,900 businesses were established or returned to operation each month, while nearly 18,400 businesses exited the market. The total retail sales of goods and consumer service revenue at current prices is estimated to have increased by 8.6% (excluding the price factor, it increased by 5.7%). The number of international visitors to Vietnam reached over 8.8 million, an increase of 58.4% compared to the same period last year and up 4.1% compared to the same period in 2019.
As of June 24, 2024, the capital mobilization of credit institutions increased by 1.50% compared to the end of 2023, while credit growth in the economy reached 4.45%. The total social investment at current prices is estimated at 1,451.3 trillion VND, an increase of 6.8% compared to the same period last year. The total export turnover of goods is estimated at 190.08 billion USD, up 14.5% (with the domestic economy reaching 53.39 billion USD, a 20.6% increase, accounting for 28.1% of total export turnover; the processed industrial goods group is estimated at 166.79 billion USD, accounting for 87.7%). The total import turnover of goods is estimated at 178.45 billion USD, up 17.0% (with the domestic economy reaching 65.74 billion USD, a 22.3% increase); the materials for production group is estimated at 167.73 billion USD, accounting for 94%.
To attract large corporations, Vietnam has been and will continue to take many practical and effective actions, such as implementing five synchronized groups of solutions to promote innovation and startups:
- Completing institutions and supportive policies
- National programs and projects
- Integrated infrastructure and technology
- Human resources
- Mobilizing international resources
Notably, Vietnam has strong momentum and positive economic growth prospects, narrowing the gap with regional countries and improving its international position. According to the International Monetary Fund’s (IMF) World Economic Outlook report in April 2024, Vietnam is the only Southeast Asian representative to be in the top 10 with a projected growth rate of 6.4% from 2024 to 2029, entering a phase of robust economic growth that places the country among the fastest-growing emerging economies, opening up significant opportunities for attracting foreign investment and boosting economic development in the region and globally.
According to the World Bank’s announcement on April 1, 2024, Vietnam’s growth forecast remains unchanged at 5.5% GDP growth for 2024, continuing to rank among the world’s leaders in economic growth rates. Vietnam is a country with significant potential, among those with high growth rates and a growth potential of around 8%.
To date, Vietnam has signed 16 free trade agreements (CPTPP, EVFTA, RCEP, etc.) with over 60 countries and major global partners. Additionally, Vietnam has established strategic partnerships and comprehensive strategic partnerships with 30 countries, including all permanent members of the United Nations Security Council.