The Vietnamese economy grew by 7.09% last year, reaching $476.3 billion, surpassing the 5.05% growth recorded in 2023, according to government data released on Monday.
The expansion was driven by strong exports and substantial inflows of foreign investment.
The General Statistics Office (GSO) reported that gross domestic product increased by 7.55% in the fourth quarter, marking the fastest quarterly growth in over two years.
As a regional manufacturing hub, Vietnam has capitalised on the global consumption rebound, despite significant impacts from the strongest typhoon to hit Asia last year, Reuters reports.
“This is a positive result amid difficulties including natural disasters and is a good foundation for 2025 growth,” Nguyen Thi Huong, head of the GSO, said during a press conference following the release of the report.
Exports in 2024 increased by 14.3% year-on-year, reaching $405.53 billion, fuelled by strong shipments of electronics, smartphones, clothing, and agricultural products, according to the report.
Whereas imports rose by 16.7% to $380.76 billion, resulting in a trade surplus of $24.77 billion.
The robust economic rebound was further supported by the government ramping up coal imports for power generation, aiming to prevent a recurrence of past electricity shortages.
In addition, foreign investment inflows climbed 9.4% to $25.35 billion, average consumer prices rose by 3.63%, and industrial production output grew by 8.4% during the year.
Furthermore, the benchmark stock index rose 0.13% by midday on Monday following the release of the 2024 economic data.
Vietnam has set an official GDP growth target of 6.5% to 7.0% for this year, though Prime Minister Pham Minh Chinh announced last month that the country would aim for an ambitious 8.0% growth rate.
“Looking forward, Vietnam will actively monitor monetary policies, stabilise exchange rates, and monitor closely big trade partners to have timely policies,” Huong said.
She noted that Vietnam was among the nations concerned about Donald Trump's proposed policies for his second term as US President, set to begin on 20th January. Trump has expressed intentions to impose new tariffs on imports into the United States, which could impact trade relations.
“When Trump takes office, his messages will be much clearer, and we will have preparations for the changes under his term accordingly,” Huong added.
Moreover, Oxford Economics said on Monday that Vietnam's GDP would grow by 6.5% this year but cautioned that the growth momentum of services exports appeared to be losing steam.
“Despite the positive growth data, challenges from the banking and real estate sectors remain, and credit growth has been below-trend,” Oxford Economics commented.