Vietnam's economy grew 7.4% in the third quarter of 2024 from a year earlier, government data showed, beating expectations after the worst storm to hit the country in 70 years brought many businesses to a halt, Nikkei Asia reported.
The GDP data released by the Directorate of Statistics marks the largest quarterly growth since the 13.7% recorded in the third quarter of 2022, which had been a strong recovery from the COVID-19 pandemic.
Previously, organizations gave quite low forecasts for the third quarter of this year, for example Standard Chartered predicted only 5.1%.
Exports led the way, rising 15.8% from the third quarter of 2023, although Typhoon Yagi contributed to the first decline in manufacturing activity since March in September, according to S&P Global Market Intelligence.
Agriculture took the biggest hit from Typhoon Yagi, growing just 2.58 percent from 3.34 percent in the previous quarter, the Statistics Directorate said.
The storm hit Vietnam on September 7, killing hundreds of people and causing an estimated $3 billion in damage.
The impact of the storm will manifest itself in lost output and damaged facilities across the manufacturing, agriculture and other service segments, UOB noted. However, beyond these temporary disruptions, long-term fundamentals remain solid.
Directorate Statistics said that Vietnam's GDP increased by 6.82% in the first 9 months of the year, nearly equal to the 7.3% increase before COVID-19.
The technology sector is a long-term driver of Vietnam’s economy. Electronics exports rose 20.6 percent in the third quarter from a year earlier. Vietnam is adding high-tech goods to its supply chain, from Besi chips to LG Electronics smartphone cameras.
"Through expanding cooperation with prestigious partners in the world in semiconductors and artificial intelligence, Vietnam has been implementing the motto: If you want to go fast, go alone, if you want to go far, go together" - Minister of Planning and Investment Nguyen Chi Dung shared.
