Vietnam’s economic growth advanced notably 6.42% in first six months of the year. According to the General Statistics Office (GSO), the country’s GDP reached 6.93% in Q2, lifting up the economic growth to 6.42% for H1-2024. Mainly making up the growth was the industry and construction sector that went up 7.51%, following by the service sector that rose 6.64% and the agriculture-forestry-fishery sector that hiked 3.38%.

Vietnam’s manufacturing sector saw sustained growth in May with solid increases in new orders, prompting a faster expansion in production, according to the S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI).

2023 marks a challenging year for the world economy with the slowdown of consumption and production activities and escalating geopolitical tensions. Amidst global uncertainties, Vietnam demonstrated a high level of resilience and recorded a respectable annual GDP growth rate of 5.05% in 2023, which is 1.5 times higher than the global average. In addition, the stable flow of FDI capital in 2023, which was mainly directed towards the manufacturing sector, placed Vietnam among the most important links in the global supply chain.

On 06 May 2024, the Department of Labor, War Invalid and Social Affairs of Hanoi city (Hanoi DOLISA) has issued the Decision No. 406/QĐ-SLĐTBXH with the purpose of authorizing the People’s Committee of local districts, towns located in Hanoi to handle some of the administrative procedures in relation to work permit of foreign employees initially under the responsibilities of the Hanoi DOLISA.

KPMG would like to share the recent updates on legal legislation for your reference. Our technical update would cover the following matters:

Vietnam’s consumer price index (CPI) this month has increased by 0.05% compared to the previous month and 4.44% year-over year, driven primarily by higher education and healthcare costs, according to the General Statistics Office (GSO)