Vietnam’s economy grows by 6.4 percent in the first half of the year

According to government figures, Vietnam’s economy grew by more than six percent in the first half of 2024, showing an expansion of 6.4 percent in January-June compared to the same period in 2023. The General Statistics Office (GSO) attributed this growth to measures taken to improve supply chains, the foreign exchange market, and public investment. Industrial production was up 7.5 percent, and foreign investment increased by 8.2 percent during this period.

To sustain and enhance this growth, analysts suggest that the government should focus on key sectors like manufacturing and processing, logistics, and hospitality. VPBank Securities analyst Duong Thien Chi also emphasized the importance of considering external factors such as the US Federal Reserve’s decisions on interest rates. The United States was Vietnam’s largest export market in the first six months of 2024, with exports increasing by 14.5 percent year on year to $190 billion.

Despite these positive trends, the International Monetary Fund (IMF) believes that Vietnam requires a new wave of reforms to further improve its economy. After a visit to the country, IMF’s Paulo Medas suggested increasing productivity, investing in human and physical capital, and encouraging private investment in renewable energy. Vietnam has set a growth target of between six and 6.5 percent for 2024, higher than the 5.05 percent growth seen in 2023.