Vietnam economy grows 5.66% in Q1/2024, highest in 5 years

Vietnam has recorded GDP growth of 5.66% in the first quarter of 2024, the highest figure for the same period since 2020, the General Statistics Office reported on Friday.

The pace is higher than 3.21% posted in Q1/2020, 4.85% in Q1/2021, 5.12% in Q1/2022, and 3.41% in Q1/2023, the General Statistics Office added.

The 5.66% growth is lower than Standard Chartered Bank's projection of 6.1%.

The service sector grew 6.12% in Q1/2024, accounting for 52.23% of the overall growth; followed by the industry-construction sector with 6.28%, or 41.68% of the total; and the agriculture-forestry-fisheries sector with 2.98%, or 6.09% of the total.

Overall, as of end-Q1/2024, the agriculture-forestry-fisheries sector made up a 11.77% portion of the economy, following the industry-construction sector with 35.73%, the service sector with 43.48%, and taxes-subsidies with 9.02%.

The 5.66% growth is a remarkable result amid the sluggish performance of many countries in the region and the world due to rising tensions around the world such as the Russia-Ukraine conflict, the Gaza strip conflict, and the Red Sea conflict that are all affecting maritime transport, the GSO said.

Approaching Q2/2024, the GSO expects the Vietnamese economy to continue facing challenges due to global hardships, such as political tension and natural disasters. To reach the target of 6-6.5% for 2024, further efforts are needed, the GSO stressed.

The GSO proposed continuing macroeconomic stability with controlled inflation and fulfilled supply of goods, boosting the domestic market, improving exports, enhancing the disbursement of public investment, and preparaing to cope with natural disasters.

Vietnam’s GDP grew 5.05% year-on-year to $430 billion in 2023. The figure is higher than 2.91% in 2020 and 2.58% in 2021, the two peak years of the Covid-19 pandemic; but lower than 8.02% in 2022, the post-pandemic period, and 7.02% in 2019, the pre-pandemic period. The growth missed the target of 6.5%, set by the National Assembly, Vietnam's highest legislative body.