Vietnam GDP expands by 7.09% in 2024

Vietnam's economy grew by 7.09% in 2024, surpassing the 6.5% target, driven primarily by the services and industrial production sectors, according to data released by the General Statistics Office (GSO) today [January 6].

Electronics production at 4P Company in Hung Yen Province. Photo: Pham Kien/The Hanoi Times

In particular, the GDP in the fourth quarter of 2024 increased by 7.55% compared to the same period of the previous year. The GSO noted that the 7.09% growth rate is the fourth highest in the past 15 years, after 2018, 2019, and 2022, highlighting a clear economic recovery.

“Vietnam's economic growth rate of over 7%, stands out amid global challenges, with many countries experiencing slower growth,” said GSO General Director Nguyen Thi Huong.

Huong added that this performance serves as an important foundation for accelerating progress in 2025.

This figure also exceeded earlier forecasts by various international organizations. Vietnam is one of the few countries in the region and the world with high growth rates, earning high praise from international organizations. In a mid-January report, HSBC described  Vietnam as Southeast Asia's "growth star" after the Philippines, which led the region last year.

With this growth momentum, Vietnam's nominal GDP is projected to reach US$476.3 billion by the end of 2024. GDP per capita rises to $4,700, an increase of $377 from 2023. Labor productivity across the economy is estimated at $9,182 per worker, an increase of $726.

Inflation remained under control, with the average consumer price index increasing by 3.63% year-on-year, meeting the National Assembly's target of staying below 4.5%.

The services sector was the largest contributor to economic growth, accounting for over 49.46% of the value added. According to the GSO, the value added in this sector increased by 7.38% over the previous year. The industrial and construction sectors grew by 8.24%, contributing 45.17% of the total value added, while the agriculture, forestry, and fisheries sectors accounted for 5.37% of the growth.

In addition to GDP, Vietnam met all 15 socio-economic targets set by the National Assembly for 2024. Many localities recorded impressive growth, with state budget revenues exceeding projections. Hanoi and Ho Chi Minh City each reported budget revenues exceeding VND500 trillion ($19.7 billion) for the first time.

The macroeconomy remained stable, inflation was controlled, and major economic balances were maintained. Confidence among businesses, investors, and the public strengthened, according to a report from the Ministry of Planning and Investment.

In 2024, over 157,200 new businesses were registered, with total capital exceeding $59 billion. Nearly 76,200 enterprises resumed operations, a 30.4% increase from 2023. On average, approximately 19,500 businesses were newly established or resumed operations each month, while about 16,500 businesses exited the market each month.

Business sentiment improved, with the fourth quarter of 2024 seeing a 5.1% increase in the share of firms reporting favorable conditions compared to the previous quarter. Meanwhile, those reporting stable conditions increased by 0.4%, and those facing difficulties decreased by 5.5%.

For 2025, the government aims for an 8% growth rate, higher than the National Assembly's target range of 6.5% to 7%. According to Huong, this is a "big challenge" that requires flexible monetary policy management, exchange rate and interest rate stabilization, and price control. "It is crucial to limit sudden price hikes to minimize the impact on inflation and people's livelihoods," she said.

Additionally, ministries, agencies, and localities must expedite public investment disbursement, attract high-quality foreign investments through competitive incentive policies, stimulate domestic consumption, and help small and medium-sized enterprises recover and develop.