Vietnam’s Economic Growth Shines Bright in 2024: A Milestone Year of 7.09% GDP Growth

Vietnam has achieved remarkable economic growth in 2024, with GDP increasing by 7.09%, surpassing the target of 6.5%. This performance highlights Vietnam as a regional and global standout amidst challenging economic conditions worldwide.

Key Drivers of Growth

The service sector and industrial production were the main engines of this growth. The service sector contributed 49.46% to the economy's value-added, growing by 7.38% year-on-year. Meanwhile, the industrial and construction sectors grew by 8.24%, accounting for 45.17% of the economy's value. Agriculture, forestry, and fisheries also played a vital role, with a contribution of 5.37% to GDP growth.

According to the General Statistics Office (GSO), Q4/2024 GDP surged by 7.55% compared to the same period last year, marking a strong recovery.

Achievements in Perspective

• Vietnam's 2024 GDP growth rate ranks among the highest in the past 15 years, only behind 2018, 2019, and 2022.
• The economy's size reached $476.3 billion, with per capita GDP hitting $4,700, a $377 increase over 2023.
• Labor productivity rose to $9,182 per worker, up $726 year-on-year.

International organizations have taken note. HSBC recently referred to Vietnam as the "growth star of Southeast Asia," further solidifying the nation's reputation as an economic powerhouse.

A Thriving Business Ecosystem

2024 also saw 157,200 new businesses established with over 1.5 million billion VND in total capital. Additionally, 76,200 businesses resumed operations—a 30.4% increase over 2023. On average, 19,500 businesses entered or re-entered the market monthly, while 16,500 businesses exited.

Business sentiment has improved, with more companies reporting favorable conditions in Q4/2024 compared to previous quarters.

A Stable Macro Environment

Vietnam maintained macroeconomic stability, with inflation at 3.63%, well below the National Assembly’s target of 4.5%. Key economic balances, including public finances and foreign reserves, remained intact, reflecting prudent fiscal and monetary policies.

Challenges and Opportunities for 2025

Looking ahead, the government aims for an ambitious 8% GDP growth in 2025, exceeding the National Assembly's target of 6.5-7%.

To achieve this, Vietnam must:

• Optimize monetary policies to stabilize exchange rates and interest rates.
• Control inflation, avoiding sudden price spikes that could burden citizens.
• Boost public investment disbursement and attract high-quality foreign capital.
• Stimulate domestic consumption and support small and medium-sized enterprises (SMEs).

A Shared Vision for the Future

The resilience shown in 2024 lays a strong foundation for further economic acceleration. With the right policies and a unified focus, Vietnam can continue to shine as a beacon of growth in Southeast Asia.