Vietnam's Economic Performance in 2024: GDP Growth

According to data from the General Statistics Office (GSO) of Vietnam, despite facing external fluctuations and uncertainties, Vietnam's Gross Domestic Product (GDP) still grew at a rate of 7.09% in 2024. Although this growth rate is slightly lower than the peak values of 2018, 2019, and 2022, it still marks a strong economic rebound, making Vietnam a highlight in the region.

In 2024, Vietnam's economy showed a gradual recovery, with quarterly growth improving continuously. The growth trajectory rose from 5.98% in Q1 to 7.25% in Q2, 7.43% in Q3, and reached 7.55% in Q4.

Industry Trends

In 2024, the growth of various industries in Vietnam was as follows:

• Services: This sector became the main driver of economic growth, contributing 49.46% to overall GDP growth, with a year-on-year increase of 7.38%.
• Industry and Construction: This sector contributed 45.17% to GDP growth, with a year-on-year increase of 8.24%, showing strong growth momentum.
• Agriculture, Forestry, and Fishery: This sector contributed 5.37% to GDP growth, with a year-on-year increase of 3.27%, maintaining stable development.

These sectors' good performance contributed to Vietnam's 2024 GDP reaching 11.51 trillion VND (approximately 476.3 billion USD), with a per capita GDP of 4,700 USD, an increase of 377 USD compared to 2023.

Inflation Under Control

In 2024, the Consumer Price Index (CPI) rose by 3.63%, in line with the target set by the National Assembly. In December, the CPI rose by 0.29% compared to the previous month, mainly due to increased prices in healthcare services, rental housing, and fuel.

Key factors for the CPI increase in December:

• Healthcare services: +2.19%
• Transportation: +0.57%
• Housing, water, electricity, and construction materials: +0.53%
• Clothing and footwear: +0.28%

At the same time, the prices of two categories of goods declined:

• Postal and telecommunications services: -0.03%
• Food and beverage services: -0.13%

Core inflation (excluding volatile items like food and energy) increased by 2.71% in 2024, lower than the overall CPI increase.

Trade – A Cornerstone of Vietnam's Economic Success

Trade has played a crucial role in driving Vietnam's economic growth. According to data from the General Statistics Office (GSO) of Vietnam, in 2024, the country's total trade volume reached an impressive 786.29 billion USD, a 15.4% year-on-year increase, with a trade surplus of 24.77 billion USD.

Imports

In 2024, Vietnam's imports grew by 16.7%, reaching 380.76 billion USD. The breakdown is as follows:

• Domestic sector imports grew by 19.5%, reaching 140.11 billion USD.
• Foreign-invested sector imports grew by 15.1%, reaching 240.65 billion USD.

Exports

In 2024, Vietnam's exports grew significantly by 14.3%, totaling 405.53 billion USD. Key highlights include:

• Domestic enterprises' exports reached 114.59 billion USD, up 19.8%, accounting for 28.3% of total exports.
• Foreign-invested enterprises (including oil) exported 290.94 billion USD, a 12.3% increase, accounting for 71.7% of Vietnam's total exports.

Foreign Direct Investment (FDI)

FDI Actual Capital Inflows

In 2024, Vietnam's actual FDI capital inflows amounted to 38.2 billion USD, a 3% decrease compared to the previous year.

According to the Department of Foreign Investment under the Ministry of Planning and Investment, despite a slight decrease in actual FDI capital inflows, Vietnam has still made significant progress in attracting foreign investment.

Key Highlights of Vietnam's FDI in 2024:

• New Registered Projects: 3,375 new projects received investment registration certificates, with a total registered capital of 19.73 billion USD. Compared to the previous year, the number of projects increased by 1.8%, but the total registered capital decreased by 0.7%.
• Adjustment of Capital Projects: The capital adjustment for 1,539 ongoing projects increased to 13.96 billion USD, a 50.4% increase year-on-year, indicating a trend of continuous expansion and additional investment in existing projects.
• Capital Contributions and Share Purchases: 3,502 capital contributions and share purchases took place, with a total value of 4.54 billion USD, down 48.1% from the previous year.

Investment Industry Overview

In 2024, foreign investment in Vietnam covered 18 out of 21 economic sectors, distributed as follows:

• Manufacturing and Processing Industry: This sector continued to be the most attractive for FDI, with total investments of 25.6 billion USD, accounting for 67% of total FDI for the year. Investment in this sector grew by 1.1% compared to the previous year.
• Real Estate: This sector attracted 6.31 billion USD in investments, accounting for 16.5% of the total investment, an increase of 19% compared to the previous year.
• Electricity Production and Supply: This sector attracted 1.42 billion USD in investment.
• Wholesale and Retail: This sector attracted 1.41 billion USD in investment.

Vietnam's Main Foreign Investors in 2024

In 2024, Vietnam attracted investment from 114 countries and regions. Key foreign investors included:

• Singapore: Investment amounted to 10.2 billion USD, accounting for 26.7% of total investment, an increase of 31.4% compared to the previous year.
• South Korea: Ranked second, with an investment of 7.06 billion USD, accounting for 18.5% of total investment, a 37.5% increase compared to the previous year.
• China, Hong Kong, and Japan were also significant investors in Vietnam in 2024.

China led in the number of new registered projects, accounting for 28.3%. South Korea ranked first in adjusted registered capital, accounting for 22.8%, and in capital contributions and share purchases, accounting for 25.2%.