Vietnam’s economy experienced a significant increase in the first half of 2024, with growth of over six percent. This was a marked improvement from the previous year, when the country saw only 3.7 percent growth. The government attributed this growth to various measures taken to improve supply chains, stabilize the foreign exchange market, and increase public investment.
Industrial production increased by 7.5 percent during this period, while foreign investment also rose by 8.2 percent compared to the previous year. Experts suggest that for sustained and further growth, Vietnam should focus on key sectors such as manufacturing, logistics, and hospitality. Policymakers must also consider external factors like the impact of interest rate reductions by the US Federal Reserve on the country’s economy.
The United States emerged as Vietnam’s largest export market in the first half of 2024, with exports totaling $190 billion, marking a 14.5 percent increase compared to the previous year. Despite these positive indicators, experts from the International Monetary Fund have stressed that for continued growth in Vietnam, new reforms are needed to be implemented. Recommendations include increasing productivity and investing in human and physical capital to encourage private investment in renewable energy sources.
Vietnam has set a growth target of between six and 6.5 percent for the year 2024 aiming to surpass the 5.05 percent growth achieved in 2023.
The strong foundation laid by Vietnam’s economic performance in the first half of 2024 is encouraging but sustained reforms and strategic investments will be essential for continued growth in future years.
Overall Vietnam has shown promising signs of economic growth so far but there is still much work to be done if it wants to achieve its full potential
