Vietnam’s Economy Surges in 2024: Key Sectors and External Factors Drive Growth

In the first half of 2024, Vietnam’s economy experienced a significant growth of 6.4 percent compared to 3.7 percent in the same period in 2023, according to government figures released on Saturday. The General Statistics Office (GSO) attributed this growth to various measures taken to enhance supply chains, the foreign exchange market, and public investment.

Industrial production rose by 7.5 percent, while foreign investment increased by 8.2 percent in comparison to last year. To sustain and enhance this growth, VPBank Securities analyst Duong Thien Chi emphasized the importance of focusing on key sectors such as manufacturing and processing, logistics, and hospitality. Additionally, policymakers should consider external factors like the US Federal Reserve’s decisions regarding interest rates.

Despite the positive export performance, which earned Vietnam $190 billion in the first half of 2024, an International Monetary Fund (IMF) analyst stressed the need for new reforms in the country. The IMF’s Paulo Medas highlighted the importance of increasing productivity, investing in human and physical capital, and encouraging private investment in renewable energy. Vietnam aims to achieve a growth rate between six and 6.5 percent for the year, compared to 5.05 percent in 2023.