July 18, 2024, 4:46 pm

Vietnam’s Q2 GDP Surges by 6.93%, Exceeds Expectations

sarakhon desk
  • Update Time : Saturday, June 29, 2024

Strong Q2 Growth
Vietnam’s economy grew by 6.93% in the second quarter of 2024, surpassing the first quarter’s growth of 5.66%. This impressive recovery is led by robust export growth, especially in electronics and seafood, according to official data.

Export-Led Recovery
Despite some domestic consumption lag, which grew by 5.78% in the first half of the year, exports have been a key driver, with a 12.5% increase in the second quarter. Vietnam aims for a GDP growth target of 6-6.5% for 2024.

Risks to Economic Recovery
Paulo Medas from the IMF warned of high downside risks, including potential global economic slowdowns, geopolitical tensions, and trade disputes. While some analysts believe the central bank might raise interest rates due to inflation concerns, opinions vary on whether the economy can withstand such measures.

Challenges and Future Prospects
Vietnam faces challenges like infrastructure underinvestment and power supply issues, which have previously disrupted factory zones. Deputy Prime Minister Le Minh Khai emphasized the need for grid improvements. The IMF highlighted the importance of renewable energy and productivity gains to sustain growth amid climate change and an aging population.

Anti-Corruption Efforts
Vietnam’s anti-corruption drive, which has led to significant political and business upheavals, is deemed crucial for high-quality development. Strengthening anti-corruption institutions and improving economic governance and transparency are necessary to create a more business-friendly environment.

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