Businesses received a significant boost with the fastest first-quarter GDP growth seen in four years and a resurgence in orders, following a challenging 2023.
The economy expanded by 5.66% in the initial three months of 2024, as per data from the General Statistics Office (GSO).
“This marks a promising beginning for Vietnam’s economy in the current year,” remarked Nguyen Thi Huong, the GSO’s general director, noting that it surpassed the optimistic projection set for the period.
Industry and construction, growing at 6.28%, emerged as the primary drivers of this growth.
While services and agriculture-forestry-aquaculture sectors expanded, they fell short of their growth targets.
Foreign trade surged by 15.5% to reach US$178 billion.
Both exports and imports witnessed their fastest growth rates since 2021, driven by robust demand for electronic and mobile phone products, as stated in a report by Singapore’s United Overseas Bank.
The semiconductor industry has seen consistent revenue growth since mid-2023 and is anticipated to continue its upward trajectory throughout this year, according to the report.
Foreign Direct Investment (FDI) inflows into the country amounted to around $6.12 billion in the first quarter, marking a 13.4% year-on-year increase, according to the Foreign Investment Agency.
Increased foreign investment is expected to bolster GDP growth, employment, and the construction sector in the forthcoming quarters, as highlighted by UOB.
Many experts and analysts predict that the country will achieve its targeted GDP growth rate of 6-6.5%.
An important concern at present is the significant number of businesses exiting the market. Official data revealed that approximately 74,000 businesses shut down, while only 36,200 new ones were established, and 23,600 resumed operations in the first quarter.