Vietnam's economy exceeds 2024 plan
On December 12, at the workshop "Investment 2025: Decoding variables - Identifying opportunities", organized by Investment Newspaper, Mr. Luong Van Khoi, Deputy Director of the Central Institute for Economic Management Research, said that GDP growth in 2024 is forecast to exceed the set plan.
Vietnam set a GDP growth target of 5.5-6% in 2024. However, in the first 9 months of the year, GDP increased by 6.82%. It is forecasted that GDP will reach 7.06% for the whole year. Mr. Khoi commented that in 2025, inflation will still be under control and the economy will continue to have many bright spots.
All three economic sectors grew steadily, with industry and services leading the way. People's income improved and international visitors grew steadily, contributing to boosting domestic consumption. Exports and foreign direct investment (FDI) continued to be growth drivers.
Transport infrastructure such as highways and high-voltage power lines will be improved, increasing inter-regional connectivity and ensuring energy. Budget revenue will increase sharply in 2024, helping to promote public investment and economic support policies. Many new laws such as the Land Law, Housing Law, Real Estate Business Law, etc. will take effect, contributing to perfecting economic institutions.
Strong growth opportunities in 2025
Mr. Hoang Xuan Trung - Head of Corporate Banking at Citi Vietnam - assessed that Vietnam's GDP will continue to grow strongly in the coming years, leading to an increase in per capita income. The young population structure and high consumer demand help stimulate the domestic market. Reform measures such as streamlining the apparatus and merging have created a healthy business environment, increasing the ability to respond to fluctuations.
The real estate market is showing signs of recovery, and the banking sector is benefiting from these changes. Bond buybacks help limit corporate bankruptcies. Mr. Trung emphasized that the fact that more and more international organizations are optimistic about Vietnam's economy is a positive sign.
Global challenges and technological prospects
According to Mr. Nguyen Tri Hieu - Director of the Institute for Research and Development of Global Financial and Real Estate Markets, 2024 will face many challenges from geopolitical and global economic instability such as conflicts in Ukraine, the Middle East, Korea and Syria. The US presidential election with the victory of Mr. Donald Trump also strongly affected the international financial market. Vietnam, with an open economy, will be significantly affected.
However, Vietnam still maintains bright spots such as controlling inflation, increasing import and export growth and attracting foreign investment. In particular, capital flows from US companies, especially in the high-tech and semiconductor sectors, will create momentum for industrial modernization. Nvidia - a leading semiconductor company - has chosen Vietnam as the location for its first R&D center in ASEAN.
Exploiting opportunities, responding to risks
Mr. Hieu said that Vietnam is restructuring its economy, preparing for a new development phase. To take advantage of opportunities from international integration and minimize risks, Vietnam needs to continue to adapt to global fluctuations, while maximizing the advantages of the gradually improving economic environment.
Improving infrastructure, boosting public investment and perfecting the legal framework will be important driving forces for Vietnam to maintain growth momentum and move towards sustainable development goals.
