Vietnam’s economy in 2024 demonstrated exceptional resilience and adaptability, overcoming both domestic and international challenges to maintain steady growth.
With strong GDP expansion, controlled inflation, and impressive trade and foreign direct investment (FDI) performance, the country continues to stand out as one of the most dynamic economies in the ASEAN region.
“Vietnam’s economic resilience in 2024 is a testament to the nation’s robust policy framework, strong leadership, and vibrant private sector,” remarked Sophie Dao, Senior Partner at GBS – Global Business Services LLC. “At GBS, we’ve been privileged to support numerous international investors entering Vietnam, and it’s clear that the country’s growth potential remains immense.”
Robust GDP Growth in 2024
Vietnam’s Gross Domestic Product (GDP) grew by 7.09% in 2024, according to the General Statistics Office (GSO). While slightly lower than pre-pandemic peaks, this figure highlights Vietnam’s impressive recovery amidst global uncertainties and external pressures.
Sectoral Contributions to GDP Growth: Services Sector contributed 49.46% to overall GDP growth with an expansion of 7.38%. Industrial and Construction Sector accounted for 45.17% of GDP growth, growing by 8.24%. Agro-Forestry-Fishery Sector represented 5.37% of GDP growth, increasing by 3.27%.
Vietnam’s GDP reached VND11.51 quadrillion (US$476.3 billion) in 2024, with per capita GDP rising to US$4,700, an increase of US$377 from 2023.
“Vietnam’s diverse economic base has been a major strength,” said Sophie Dao. “Foreign investors are especially drawn to the stability and growth prospects across sectors, from manufacturing to services.”
Inflation Under Control
Vietnam effectively managed inflation in 2024, with the Consumer Price Index (CPI) rising by 3.63%, staying well within the National Assembly’s target range.
Key Drivers of CPI Increase in December 2024:
- Healthcare services: +2.19%
- Transportation: +0.57%
- Housing, electricity, water, and construction materials: +0.53%
- Clothing and footwear: +0.28%
Categories with Decreased Prices:
- Postal and telecommunications services: -0.03%
- Food and beverage services: -0.13%
Core inflation, excluding volatile items such as food and energy, rose by 2.71%, reflecting effective fiscal and monetary policy measures.
“Vietnam’s prudent inflation management has reassured foreign investors, creating a stable economic environment for long-term commitments,” added Sophie Dao.
Trade: The Cornerstone of Economic Success
Vietnam’s trade sector remained a vital pillar of its economy, with total trade turnover reaching US$786.29 billion, marking a 15.4% year-on-year increase. The trade surplus reached US$24.77 billion, showcasing Vietnam’s growing global competitiveness.
Imports:
- Total imports grew by 16.7% to US$380.76 billion.
- Domestic sector: Increased by 19.5% to US$140.11 billion.
- Foreign-invested sector: Grew by 15.1% to US$240.65 billion.
Exports:
- Total export value surged by 14.3% to US$405.53 billion.
- Domestic sector: Contributed US$114.59 billion (+19.8%), accounting for 28.3% of exports.
- Foreign-invested sector (including crude oil): Generated US$290.94 billion (+12.3%), representing 71.7% of total exports.
Key Highlights:
- 37 export items each exceeded US$1 billion in revenue.
- Eight products crossed the US$10 billion mark, contributing 69% of total export value.
- Monthly average export turnover stood at US$30 billion.
Vietnam’s export growth outpaced regional peers such as China, South Korea, Thailand, and Indonesia, which reported export growth rates between 1.33% and 12.7%.
“Vietnam’s trade strategy has been remarkably effective,” noted Sophie Dao. “The country is not only maintaining its export competitiveness but also becoming a critical link in global supply chains.”
Exports from agriculture, forestry, and fisheries reached US$62.4 billion, marking an 18.5% increase despite natural disasters and global market fluctuations.
Foreign Direct Investment (FDI): A Magnet for Global Investors
Vietnam continued to attract significant foreign direct investment (FDI) inflows, cementing its reputation as an attractive investment destination.
- Total FDI disbursement: US$23.6 billion, marking a 7.8% increase year-on-year.
- Top FDI sectors: Manufacturing, real estate, renewable energy, and technology.
- Key FDI sources: South Korea, Japan, Singapore, and China.
“Vietnam remains a key priority for many global investors due to its strategic location, competitive labor force, and government incentives,” emphasized Sophie Dao. “At GBS, we’ve facilitated numerous foreign investments this year, and the momentum remains strong.”
Policy Measures and Economic Governance
The Vietnamese government introduced key policy measures to stabilize and drive growth:
- VAT Reduction: A 2% cut on selected goods and services boosted domestic consumption.
- Digital Transformation Initiatives: Promoted e-governance and digital payment adoption.
- Infrastructure Development: Investments in transportation, logistics, and smart cities enhanced connectivity and resilience.
“The Vietnamese government’s proactive policy approach has created a fertile ground for both domestic and foreign enterprises,” commented Sophie Dao.
Challenges and Opportunities Ahead
Key Challenges:
- Global economic uncertainties and supply chain disruptions.
- Climate-related risks, including natural disasters.
- Overdependence on key export markets.
Key Opportunities:
- Demographic Dividend: A young, tech-savvy workforce driving consumption and innovation.
- Growing Middle Class: Rising incomes and evolving consumption habits.
- Global Supply Chain Realignment: Vietnam is becoming a preferred destination for manufacturing and logistics investments.
“The opportunities far outweigh the challenges, especially for foreign investors with long-term visions,” said Sophie Dao.
Outlook for 2025 and Beyond
The economic outlook for 2025 remains optimistic:
- GDP growth projected above 7%.
- Trade activities expected to maintain strong momentum.
- FDI inflows anticipated to grow further.
- Digital transformation to boost productivity across industries.
“Vietnam’s economic growth trajectory is well-positioned for sustained success,” concluded Sophie Dao. “At GBS, we remain committed to guiding global investors in seizing the opportunities Vietnam offers.”
Vietnam’s 2024 economic performance underscores its strength, adaptability, and growth potential. With robust GDP expansion, a strong trade surplus, controlled inflation, and significant FDI inflows, the country is poised for sustainable economic growth.
As Vietnam looks ahead to 2025, it remains one of the most attractive investment destinations in Southeast Asia, offering unparalleled opportunities for businesses and investors seeking growth in a vibrant and dynamic market.
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Source: Vietnam Insider