Vietnam is expected to achieve a GDP growth rate of 7% by 2024, surpassing the government's target
According to the Ministry of Investment of Vietnam, it is expected that Vietnam's GDP growth rate in the third quarter of this year will reach 7.4%, further rising to 7.6% in the fourth quarter
On Saturday morning, Vietnamese Minister of Planning and Investment Nguyen Chi Dung stated at a cabinet meeting that Vietnam's economic growth is accelerating, and this year may reach or exceed the government's growth target of 6.5%.
An article on the Vietnamese government website quoted Nguyen Chi Dung as saying that with improvements in industry and construction driving economic growth, Vietnam's economic growth this year may even reach 7%.
This forecast surpasses the predictions of the International Monetary Fund (IMF). The IMF previously stated that Vietnam's economic growth rate may approach 6% in 2024.
Nguyen Chi Dung said:
If the growth momentum continues and accelerates, the growth rate in 2024 is likely to reach or even exceed the target set by the National Assembly.
According to recent data released by the General Statistics Office of Vietnam, Vietnam's GDP grew by 6.42% in the first half of 2024, with an increase in growth rate. For the second half of the year, the Ministry of Investment has proposed two economic growth scenarios:
Scenario One: GDP in the third and fourth quarters may grow by 6.5% and 6.6% respectively.
Scenario Two: GDP growth of 7.4% in the third quarter and 7.6% in the fourth quarter.
Nguyen Chi Dung also mentioned that the increase in exports and foreign direct investment will benefit the economy.
In recent years, under the influence of geopolitical factors, Vietnam has attracted a large number of foreign investors due to advantages such as labor force. However, due to a lack of clear supportive regulations, Vietnam's attractiveness to foreign investment is declining.
In a document at the end of June, the Ministry of Investment stated that U.S. chip giant Intel and South Korean LG Chem have both abandoned their investment plans in Vietnam.
Furthermore, affected by concerns about economic slowdown, the FTSE Vietnam 30 Index fell by over 6% in the second quarter.
