Q3-2024 economic growth was above expectations. Where did the momentum come from? Can this trend be sustained? Strong recovery in industry and construction Vietnam’s Q3-2024 GDP is estimated to have grown by 7.4% compared to the same period in 2023, significantly higher than the 5.33% growth of Q3-2023. This is a surprising outcome, especially considering that typhoon Yagi wreaked havoc on multiple northern provinces in September, particularly in the agriculture sector. This robust Q3 performance lifted the growth rate for the first nine months of 2024 to 6.82%, 1.55 times higher than the 4.4% growth in the same period of 2023. Among the sectors, industry and construction grew the fastest at 8.19%, making a weighted contribution of 46.22% to overall growth; the service sector expanded by 6.95%, with the largest contribution at 48.41%; and the agriculture, forestry, and fisheries sector grew by only 3.2%, contributing 5.37%. In comparison, during the same nine-month period of 2023, industry and construction edged up by only 2.41%, contributing just 22.27% to overall growth. The steep growth in January-September this year shows a strong recovery in these sectors. The primary driver of industrial and construction growth was the manufacturing-processing sector, which picked up by 9.76%, […]
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