Booming Economy: How Vietnam’s Growth Continues Despite External Challenges

In the first half of 2024, Vietnam’s economy grew by more than six percent, with an expansion of 6.4 percent compared to the same period in 2023. The General Statistics Office (GSO) attributed this growth to measures taken to improve supply chains, the foreign exchange market, and public investment. Industrial production was up 7.5 percent, and foreign investment increased by 8.2 percent during this period.

To sustain and enhance this growth, analysts suggest that the government should focus on key sectors like manufacturing and processing, logistics, and hospitality. VPBank Securities analyst Duong Thien Chi also emphasized the importance of considering external factors such as the US Federal Reserve’s decisions on interest rates. The United States was Vietnam’s largest export market in the first six months of 2024, with exports increasing by 14.5 percent year on year to $190 billion.

Despite these positive trends, there are challenges ahead for Vietnam’s economy. The International Monetary Fund (IMF) believes that Vietnam requires a new wave of reforms to further improve its economy. After a visit to the country, IMF’s Paulo Medas suggested increasing productivity, investing in human and physical capital, and encouraging private investment in renewable energy.

To achieve its growth target of between six and 6.5 percent for 2024, higher than the 5.05 percent growth seen in 2023, Vietnam must continue to take measures that promote economic growth while addressing challenges such as inflationary pressures and trade tensions with major trading partners.

The Vietnamese government has been working hard to attract foreign investment through various policies aimed at promoting economic growth in key sectors such as manufacturing and processing, logistics, and hospitality. However, there are still challenges ahead for Vietnam’s economy.

The International Monetary Fund (IMF) has recommended several measures for Vietnam to further improve its economy after visiting the country earlier this year. These include increasing productivity through investments in human capital and technology transfer programs from developed countries.

Vietnam’s government has set a growth target of between six and 6.5 percent for