Economic Growth of Vietnam in the First Half of 2024

25 Jul 2024

By: B&Company

In the first six months of 2024, the global economy continued to face numerous risks and uncertainties, negatively impacting sustainable growth. However, Vietnam’s economy during the same period maintained a positive trend with a growth rate higher than that of the same period in 2023.

GDP Growth Rate

Vietnam’s GDP in the first half of 2024 increased by 6.4%, higher than the 3.8% growth recorded in the first half of 2023. In the structure of value-added growth of the economy, the agriculture, forestry, and fishery sector contributed 6%; the industrial and construction sector contributed 44%; while the service sector contributed 50%.

Industrial Production

The value-added of the industrial sector in the first half of 2024 increased by 7.5% compared to the same period last year. Among these, the manufacturing and processing sector played a key role with a growth rate of 8.7%; the electricity production and distribution sector increased by 13.3%; and the water supply and waste management sector grew by 7.1%. Notably, the mining sector recorded a decline of 7.2%.

Business Activities

In the first half of 2024, there were 781 new enterprises established in the agriculture, forestry, and fishery sectors, a decrease of 2.3% compared to the same period last year. The industrial and construction sector recorded 19 thousand enterprises, an increase of 5.3%, while the service sector had 61 thousand enterprises, a rise of 6.4%. However, on average, nearly 18 thousand businesses withdrew from the market each month in the first half of 2024, an increase of 15.1%.

Foreign Investment Registered in Vietnam

In the first half of 2024, 1,538 new investment projects were licensed with a total registered capital of 9.5 billion USD, an increase of 47% in capital compared to the same period last year. The manufacturing and processing sector led in foreign direct investment with 6.8 billion USD (accounting for 72%); followed by the real estate sector with 1.9 billion USD (accounting for 20%), and other sectors with 818 million USD (accounting for 9%). In the first half of 2024, Singapore was the largest investor with 4 billion USD (accounting for 42%), followed by Hong Kong with 1.2 billion USD (accounting for 12%), China with 1 billion USD (accounting for 11%), and Japan with 979 million USD (10%).

Goods Export

In the first half of 2024, the export turnover of goods reached 190 billion USD, an increase of 14.5% compared to the same period last year. Among them, the foreign-invested sector achieved 137 billion USD (accounting for 72%), with a growth rate of 12.3%. Some sectors with export values exceeding 20 billion USD include electronics, computers, and components (increased 28.6%), phones and components (increased 11.3%), and machinery, equipment, and other spare parts (increased 16.2%). The United States is Vietnam’s largest export market, followed by China and the EU

Goods Import

In the first half of 2024, the import turnover of goods reached 178 billion USD, an increase of 17% compared to the same period last year. The foreign-invested sector reached 113 billion USD (accounting for 63%), with a growth rate of 14.1%. Items with import values exceeding 20 billion USD include electronics, computers, and components (increased 26.7%) and machinery, equipment, and other spare parts (increased 14.6%). China is Vietnam’s largest import market, followed by South Korea and ASEAN.

Conclusion

Despite many uncertainties in the global economy, Vietnam’s economy continues to grow well at 6.4%. According to forecasts from the World Bank, IMF, and ADB, Vietnam’s growth in 2024 is expected to reach between 5.5-6% (higher than Vietnam’s 5% in 2023). With positive economic growth prospects, Vietnam’s import-export and investment activities are expected to continue to increase in the coming time.

Source: B&Company compilation from data of General Statistic Office of Vietnam

B&Company, Inc.

The first Japanese company specializing in market research in Vietnam since 2008. We provide a wide range of services including industry reports, industry interviews, consumer surveys, business matching. Additionally, we have recently developed a database of over 900,000 companies in Vietnam, which can be used to search for partners and analyze the market.

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