Vietnam’s economy grows 7.09% in ’24

Vietnam’s economy expanded by 7.09 per cent in 2024, reaching $476.3 billion, a significant increase from the 5.05 per cent growth recorded in 2023, according to government data released early Monday.

The strong performance was driven by exports, which rose 14.3 per cent to $405.53 billion, and a 9.4 per cent rise in foreign investment inflows, totalling $25.35 billion.

In the fourth quarter, GDP grew 7.55 per cent, the fastest quarterly growth in over two years, as Vietnam benefited from recovering global consumption despite the impact of Asia’s strongest typhoon last year. Imports increased by 16.7 per cent to $380.76 billion, resulting in a trade surplus of $24.77 billion.

Key export sectors included electronics, smartphones, clothing, and agricultural products. Industrial production rose 8.4 per cent, while average consumer prices increased by 3.63 per cent.

Electricity output grew 9.6 per cent to 293.3 billion kilowatt hours, supported by a 24.8 per cent rise in coal imports, which reached 63.8 million metric tons.

Vietnam’s benchmark stock index (.VNI) rose 0.13 per cent following the release of the 2024 data. The government has set a GDP growth target of 6.5–7.0 per cent for 2025, with Prime Minister Pham Minh Chinh aiming for 8.0 per cent growth.

The General Statistics Office (GSO) highlighted the importance of monitoring global economic trends and stabilising exchange rates. Concerns remain about potential US tariffs under Donald Trump’s upcoming presidency and challenges in Vietnam’s banking and real estate sectors. Oxford Economics projects GDP growth of 6.5 per cent in 2025 but noted slowing momentum in services exports and below-trend credit growth.

Attribution: Reuters

Subediting: Y.Yasser