Vietnam’s economy expands 6.4 percent in the first half of the year

Global manufacturing hub Vietnam targets six to 6.5 percent growth this year (Nhac NGUYEN)

Vietnam’s economy grew by more than six percent in the first half of 2024, government figures showed Saturday, and analysts said more reforms were needed to further boost the economy.

Global manufacturing expanded 6.4 percent in January-June, compared with 3.7 percent in the same period in 2023, the General Statistics Office (GSO) said in a report.

The GSO said the boom was the result of „multiple measures” taken to improve supply chains, the foreign exchange market and public investment.

Industrial production rose 7.5 percent, while foreign investment rose 8.2 percent compared to the same period last year, new figures showed.

To maintain and promote growth, the government should focus on key sectors such as manufacturing and processing, logistics and hospitality, said VPBank Securities analyst Duong Thien Si.

Policymakers should take into account „unquantifiable variables” such as the US Federal Reserve’s interest rate cuts, Duong told AFP.

The US was Vietnam’s largest export market in the first six months of 2024.

The Southeast Asian country earned $190 billion in exports during the period, up 14.5 percent year-on-year.

Despite such progress, an International Monetary Fund analyst said Vietnam „needs a new wave of reforms” following a visit to the country in late June.

„Increasing productivity, investing more in human and physical capital, and encouraging private investment in renewable energy are important,” said the IMF’s Paulo Medas.

Vietnam is targeting six to 6.5 percent growth this year, up from the 5.05 percent seen in 2023.

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