Better-than-expected growth and well-controlled inflation are providing a solid foundation for Vietnam’s economy to enter a recovery phase. However, private investment will need to rebound strongly to lead the economy in 2025. Vietnam’s economic growth in 2024 Looking at the main components of the economy—household and personal final consumption (C), investment (I), government spending (G), and net exports (X-M)—economic growth in 2024 was primarily driven by investment and exports, led by foreign direct investment (FDI) enterprises. Specifically, in the investment (I) component, FDI grew by 10.6% compared to 7.7% growth from the private sector and just 3.3% from state budget investment. FDI disbursement reached its highest level ever, with realized FDI capital estimated at approximately US$25.35 billion, up 9.4% from 2023. Net exports (X-M) recorded double-digit growth, with a trade surplus of US$24.77 billion. Once again, export achievements were primarily attributed to FDI enterprises, which accounted for 71.7% of total export turnover. On the other hand, household consumption, as reflected in total retail sales of goods and services, grew by 9.6%. While this is not a low growth rate, it lags behind the double-digit average growth seen in previous years, indicating that household consumption is still in a recovery phase. […]