Vietnam’s Economy Grows by 6.4% in First Half of 2024: Key Sectors and Reforms Needed for Continued Success

Vietnam’s economy experienced significant growth in the first half of 2024, with an increase of over six percent. This marked a substantial improvement from the previous year, where growth was recorded at just 3.7 percent. Government figures revealed that the country experienced a 6.4 percent expansion from January to June.

The rise in growth was attributed to various measures taken to improve supply chains, stabilize the foreign exchange market, and increase public investment. Industrial production saw a notable increase of 7.5 percent during this period, while foreign investment also rose by 8.2 percent compared to the previous year.

To sustain and further boost this growth, analysts suggested that policymakers should focus on key sectors such as manufacturing, logistics, and hospitality. They also highlighted the need for external factors like interest rate reductions by the US Federal Reserve to be taken into account when developing policies for Vietnam’s economy.

In terms of exports, Vietnam emerged as its largest export market in the first half of 2024, with total exports reaching $190 billion. This represented a 14.5 percent increase compared to the previous year. Despite these positive indicators, experts from the International Monetary Fund emphasized the importance of new reforms in Vietnam’s economy to foster continued growth. Recommendations included increasing productivity through investments in human and physical capital and encouraging private investment in renewable energy sources.

Vietnam has set a growth target of between six and 6.5 percent for the year 2024, aiming to surpass last year’s achievement of 5.05 percent growth rate.

Overall, Vietnam’s strong economic performance in the first half of 2024 laid a solid foundation for achieving its growth targets for the year ahead.

However, sustained growth will require continued reforms and strategic investments across all sectors of its economy