Vietnam’s Economy Surges: 6.4% Growth in the First Half of 2024 and Key to Continued Success

Vietnam’s economy experienced a remarkable growth rate of over six percent in the first half of 2024, with an expansion of 6.4 percent compared to the same period in 2023, according to government data. This positive trajectory was attributed to several measures implemented to improve supply chains, stabilize the foreign exchange market and increase public investment. Industrial production increased by 7.5 percent, and foreign investments increased by 8.2 percent compared to the previous year.

To maintain this growth trend, experts recommend focusing on key sectors such as manufacturing and processing, logistics and hospitality. VPBank Securities analyst Duong Thien Chi suggests that these sectors should be prioritized for sustainable growth. However, factors such as the US Federal Reserve’s change in interest rate policy also play a role in Vietnam’s economic outlook. With the United States being Vietnam’s largest export market in the first half of 2024, with exports of $190 billion, the country is on a positive trajectory.

During a recent visit to Vietnam, IMF’s Paulo Medas emphasized the importance of increasing productivity, investing in human and physical capital and encouraging private investment in renewable energy sources for sustainable growth. Vietnam is targeting a growth rate of between six and 6.5 percent by 2024, surpassing the 5.05 percent growth rate seen in the previous year.

To continue strengthening its economy further reforms are necessary as analysts suggest