Vietnam: GDP Grows 5.66% in First Quarter of 2024

The Asian country's exports increased by 17 percent

Pham Minh Chinh

Vietnam’s economy will be able to grow by 6.0-6.5% in 2024, according to Prime Minister Pham Minh Chinh‘s socio-economic development program. The Asian country’s economy grew at a 5.66% annualized rate in the first quarter of 2024. According to the General Statistics Office of Vietnam (GSO), GDP growth in the first three months of the year was faster than +3.41% in the same period last year, but slower than the fourth quarter of 2023 (+6.72%). The slowdown was due to weaker-than-expected trade and an anti-corruption campaign that has affected many of the country’s largest companies.

Compared to the corresponding period of 2023, manufacturing and construction grew by 6.28% in the first quarter of this year, while services grew by 6.12%. Industrial production in the first quarter increased by 21.7% compared to a year ago. On the trade side, retail sales rose 8.2% year-on-year. Vietnam’s electricity production in the first quarter rose 11.4% compared with the previous year to 65.5 billion kWh.

Inflation is alarming: in March, consumer prices rose by 3.97% compared to the same period in the previous year.

The driving force behind Vietnam’s economy was primarily exports, which increased significantly from January to March 2024, despite disruptions in shipping across the Red Sea caused by Houthi attacks. As reported by GSO, Vietnam’s exports in the indicated period increased 17% compared to a year ago, rising to $93.06 billion. Imports also rose 13.9% to $84.98 billion, resulting in a trade surplus of $8.08 billion.