[Grant Thornton] Vietnam Economic News Recap – December 2024

As we conclude the year 2024, it is important to recognize the complex landscape Vietnam navigated throughout the year. Despite facing significant challenges, including global economic slowdown and geopolitical tensions, coupled with domestic hurdles such as the stagnant real estate sector and natural disasters like typhoon Yagi, Vietnam’s economy has continuously proven its resilience, showcasing a strong rebound with GDP growth reaching 7.09%, a notable improvement from the 5.05% recorded in 2023. This growth reflects the country’s ability to navigate adversity while capitalizing on opportunities in sectors critical to its development.

In 2024, foreign direct investment (FDI) continued to be a bright spot in the economy, reflecting strong international confidence in Vietnam’s potential for doing business. The manufacturing industry continued to lead in attracting investment, demonstrating its role as a cornerstone of Vietnam’s economic development. The steady flow of FDI also facilitated the development of industrial real estate, driven by increased demand for facilities from investors. In particular, the semiconductor industry has also become a key focus, with the Vietnamese government actively encouraging investment from global tech companies.

Looking ahead to 2025, there is a palpable sense of optimism regarding the potential for robust economic growth. Vietnam has set a GDP growth target of 6.5-7.0% for the year, reflecting the country’s confidence in ongoing recovery trends and structural reforms. However, the economy continues to face significant uncertainties, such as rising trade barriers, inflationary pressures, and the need to address infrastructure bottlenecks may impact growth. Nevertheless, there is optimism that Vietnam’s proactive approach will enable the country to navigate these obstacles and maintain steady progress.

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