Bright Prospects For Vietnam's Economy In 2024

Photo: UOB

The Business Times cited data released by the General Statistics Office of Vietnam on March 29 showing that Vietnam's Gross Domestic Product (GDP) in the first quarter of 2024 increased by 5.66% over the same period last year, with export growth rate returning to double digits.

This increase was larger than the increase recorded in the same period four years ago, but slower than the 6.72% increase in the previous quarter.

The biggest contributors to Vietnam's growth in the first three months of 2024 are the service and manufacturing sectors, with growth rates of 6.12% and 6.98% respectively.

According to the newspaper, Vietnam's exports in March increased 14.2%, to about US$34 billion compared to a year ago.

Imports also increased 9.7% from a year earlier to nearly US$31.1 billion. Overall, exports and imports in the first quarter of 2024 grew by double digits of 17% and 13.9% respectively over the same period last year. This led to a trade surplus of about US$8.1 billion in the first quarter.

Industrial production in March 2024 increased by 4.1% over the same period last year.

Analysts expect production to keep pace with export growth in the coming months, with new orders growing and inventories falling.

Increased factory activity is also likely to boost employment and stimulate sustainable consumption in the second half of the year.

According to an analysis by The Business Times, although improved export and consumption prospects tend to boost investment and lending demand, relatively high borrowing costs and limited access to bank loans remain barriers for domestic companies.

The Business Times cited a report from the State Bank of Vietnam showing that, as of March 25, the banking system's credit had returned to positive growth at 0.26% compared to the end of 2023.

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