Request Rejected

Key Points

• Vietnam's GDP growth exceeded expectations in 2024, reaching 7.1%, with manufacturing leading the surge.
• Exports recovered from 2023's low base, driven by electronics, machinery, and textiles.
• Despite growth in retail goods and services, consumer spending remained sluggish compared to pre-COVID levels.
• Public investment's impact on economic growth was limited, but private and FDI investments showed promise.
• Vietnam's currency, the dong, depreciated by 5.0% against the USD, influenced by global and domestic factors.

Detailed Summary

• Manufacturing Dominates Growth: The manufacturing sector spearheaded GDP growth with a 9.8% increase, contributing 2.3 percentage points to the overall figure. Transportation, warehousing, and wholesale-retail trade also contributed significantly.
• Export Surge: Exports grew by 14.3%, benefiting from a low base in 2023. Electronics, machinery, and textiles drove this increase, accounting for 4.8%, 2.6%, and 2.0% of the growth, respectively.
• Slow Consumer Spending: Retail sales rose by 9.0%, lower than the previous year's growth. Apparel and transportation sectors saw modest gains, while household goods saw the lowest increase (3.6%).
• Limited Public Investment: Public investment amounted to 3.7 trillion VND, growing by only 3.3%. The government's development spending declined by 8.7%, highlighting the muted role of public investment in economic growth.
• FDI and Private Investment Supporting Growth: Foreign direct investment and private sector investments boosted production and are expected to continue providing support in 2025.
• Currency Depreciation: The dong weakened against the USD by 5.0% due to a combination of factors, including the strengthening of the US dollar index, NHNN's exchange rate adjustments, and the sale of foreign reserves.

Conclusions

• Vietnam's economic growth in 2024 was driven primarily by the manufacturing sector and strong exports.
• Consumer spending and public investment remained areas of concern for the economy.
• Private sector and foreign investments are expected to play a crucial role in future economic growth.
• The depreciation of the dong reflects external and domestic factors and requires continued monitoring by policymakers.