Groundwork for growth
With various achievements and crucial foundations established, 2024 serves as a pivotal year for Vietnam's economic advancement.
Despite the severe impact of Super Typhoon Yagi and global economic volatility, Vietnam’s economy demonstrated its resilience in the year, with its GDP growth surpassing 7%, ranking among the few nations with high growth rates regionally and globally.
International organisations have praised Vietnam’s economic performance, with some revising their forecasts upward. Notably, Standard Chartered raised its forecast for Vietnam's economic growth in 2024 to 6.8%, VinaCapital predicted the GDP growth to remain at 6.5% for both 2024 and 2025, the Hong Kong-Shanghai Banking Corporation (HSBC) increased its growth forecast to 7%, and the International Monetary Fund (IMF) adjusted its projection to 6.8%. The national brand value reached 507 billion USD in 2024, ranking 32nd out of 193 countries, up one spot from 2023. Business confidence is rebounding and economic outlook remains rosy.
Inflation was kept at below 4%, a remarkable achievement given wage increases starting July 1, 2024, and price adjustments for certain goods and services.
Foreign trade was a standout success, serving as a key driver of economic growth. Total import-export turnover hit a record of nearly 800 billion USD, up 15% from the previous year and nearly three-fold over the assigned target.
“The structure of exports continues to improve positively, with reduced raw materials and increased processed and industrial products, enabling deeper integration into global production and supply chains," said Deputy Minister of Industry and Trade Phan Thi Thang.
Vietnam maintained a trade surplus for the ninth consecutive year, reaching nearly 25 billion USD. This boosted foreign exchange reserves, stabilised exchange rates, and reinforced macro-economic stability. Industrial production saw a strong recovery, with an impressive growth rate of 8.4%, with manufacturing and processing up nearly 10%, providing significant momentum for macro-economic development.
With the signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) in a record 16 months, Vietnam has integrated more intensively into the global economy.
Amid challenging circumstances, fiscal and monetary policies have played a vital role in economic development. Tax and fee reduction and exemption for 2024 and 2025 have significantly supported production and business activities, creating jobs, controlling inflation, stabilising the economy, and ensuring social welfare.
The Ministry of Finance introduced incentives to help remove difficulties for enterprises and citizens with total funding of 191 trillion VND (7.5 billion USD) in 2024. The total state budget revenue exceeded 2 quadrillion VND, up 19.1% from the projection and 15.5% from 2023.
“Over the past four years, the state budget revenue has consistently exceeded the previous year by over 1 trillion VND. This is a great effort and a success in fiscal policy management. Thanks to that, we have more resources to invest in airports and sea ports, and implement infrastructure projects such as the North-South Expressway as well as social welfare policies," according to Deputy Prime Minister Ho Duc Phoc.
Monetary policy management also contributed to stabilising the macro-economy, controlling inflation, supporting liquidity for credit institutions, and reining in money and foreign exchange markets.
Accordingly, the State Bank of Vietnam created favourable access to bank loans, which restored production and business, and contributed to promoting growth associated with stabilising the macro-economy, controlling inflation, and ensuring the safe operation of credit institutions. According to reports from commercial banks, lending interest rates have continued to decline by approximately 0.96% per year compared to late 2023.
Prioritising growth acceleration
PM Chinh emphasised that 2025 is a year of acceleration and breakthroughs, striving to achieve the highest possible results for the targets and indicators set in the 2021-2025 plan while also undertaking organisational restructuring. During this streamlining process, tasks must continue to be promoted, implemented, and completed, and once completed, work must resume immediately.
The restructuring aims to reduce staffing levels, cut recurring expenses—which currently account for about 68% of total budget expenditures—and eliminate overlaps in the functions of ministries and agencies. Minister of Planning and Investment Nguyen Chi Dung highlighted the focus on leveraging growth poles, economic corridors, and dynamic zones to create spillover effects nationwide. He also called for exploring new economic models and industries to drive growth. The State Bank of Vietnam said that it will manage interest rates in line with market and macro-economic developments, as well as inflation and monetary policy targets.
It will closely monitor the market situation to manage exchange rates, and coordinate monetary policy tools, which would contribute to controlling inflation and stabilising the macro economy. The central bank will also direct credit institutions to ensure safe and efficient credit growth, focusing lending on production and business sectors, priority areas, and key growth drivers in line with the policies of the Government and the PM.
