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Thursday, July 25, 2024

Vietnam’s economy shows robust rebound

The Saigon Times

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HCMC – Vietnam had a strong economic performance in the first half of this year, beating growth forecasts, Prime Minister Pham Minh Chinh said at a Government meeting held in Hanoi today, July 6.

Despite global economic uncertainties, rising prices, and climate change impacts, Vietnam’s GDP expanded by 6.42% between January and June. The figure exceeds initial projections and outpaces the growth rates of regional peers.

The second quarter’s GDP picked up by 6.93%, driven by a resurgence in agricultural, forestry, and fishery exports, and an uptick in manufacturing activity.

PM Chinh emphasized the Government’s efforts in maintaining macroeconomic stability, with inflation hovering around 4% and key economic balances remaining solid.

Vietnam has allocated about VND700 trillion for a much-anticipated salary increase for public sector employees. The policy, effective from July 1, is expected to stimulate domestic consumption and the country’s economic recovery.

Despite positive achievements, the economy has faced several challenges. Business operations are struggling in certain sectors, as seen by the 18.4% increase in the number of firms leaving the market in the first six months.

The Government leader stressed the need to achieve the highest possible socioeconomic targets in the third and fourth quarters. The goals include striving for GDP growth of 6.5-7% in Q3 and keeping inflation below 4.5%.

The Ministry of Planning and Investment said Vietnam’s GDP growth for all of 2024 could potentially reach or even surpass the National Assembly’s target of 6.5%, provided the current momentum is maintained.

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