Southeast Asian economies have shown remarkable resilience, achieving solid economic growth in the second quarter of 2024, with Vietnam and the Philippines standing out as the region’s top performers.
Vietnam’s economy grew by 6.9%, while the Philippines followed closely with a 6.3% expansion, according to a recent report from McKinsey & Company, a global strategy and management consulting firm based in the US.
McKinsey’s report highlighted Vietnam’s economic acceleration in the second quarter, as GDP growth rose to 6.9% from 5.6% in the previous quarter. The country’s industrial and service sectors played key roles in driving this growth.
Private consumption also strengthened and is expected to expand further throughout 2024. The export sector maintained its upward momentum, benefiting from increased global demand, especially in key industries such as smartphones, electronics, and textiles.
The report underscored the significant growth in foreign direct investment (FDI) during the quarter, reinforcing Vietnam’s reputation as an attractive investment destination. However, it also pointed out that inflation continued to climb, driven by wage increases, which has added pressure on the central bank’s monetary policy.
FDI was one of the major highlights of Vietnam’s economic performance, with disbursed FDI reaching $6.2 billion in the second quarter, up from $4.6 billion in the first quarter. Total FDI registered in the first half of 2024 amounted to $15.2 billion, marking a 13.1% increase compared to the same period in 2023.
The robust growth is expected to continue supporting Vietnam’s economy in the near future, further solidifying the country’s appeal as a key investment hub for foreign businesses seeking to diversify their global supply chains, the report concluded.
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Source: Vietnam Insider