{"id":6490,"date":"2024-05-14T09:27:50","date_gmt":"2024-05-14T14:27:50","guid":{"rendered":"https:\/\/arc-group.com\/report\/vietnam-economic-update-report-q1-2024\/"},"modified":"2025-03-18T07:28:34","modified_gmt":"2025-03-18T12:28:34","slug":"vietnam-economic-update-report-q1-2024","status":"publish","type":"report","link":"https:\/\/arc-group.com\/report\/vietnam-economic-update-report-q1-2024\/","title":{"rendered":"Vietnam Economic Update Report, Q1 2024"},"content":{"rendered":"
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Vietnam’s gross domestic product (GDP) in the first quarter of 2024 reaches the highest record of the same period during the period of 2020-2023<\/h3>\n

Vietnam’s economy experienced a robust 5.66% growth in the first quarter of 2024, exceeding the growth rates for the same period from 2020 to 2023.<\/h4>\n

The industry and construction sectors were the key drivers for the economy, with a 6.28% increase in growth rate, accounting for 41.68% of the total national growth. The impressive growth of these sectors was directly fueled by the government\u2019s policy of encouraging public investment.<\/p>\n

Focus on promoting tourism and trade resulted in a 6.12% expansion of the service sector in the first quarter. Due to this growth, the service sector now comprises over 52.2% of Vietnam\u2019s GDP growth. The agriculture, forestry, and fishery sectors are showing signs of recovery, though at a more moderate pace with a growth rate of 2.98%.<\/p>\n

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Manufacturing played a crucial role in driving Vietnam\u2019s economic expansion. The processing and manufacturing industry saw a surge of 6.98%, contributing 1.73 percentage points to overall growth. Additionally, electricity production and distribution experienced a remarkable growth of 11.97%, adding 0.45 percentage points. Water supply, waste, and wastewater management and treatment grew by 4.99%, making a smaller yet significant contribution of 0.03 percentage points.<\/p>\n

Manufacturing has been central to Vietnam\u2019s export economy since the The Doi Moi economic reforms were a series of significant changes initiated in 1986 by the Communist Party of Vietnam, marking a shift away from a Soviet-style, centrally planned economy and towards a \u201csocialist-oriented market economy. Its strategic Southeast Asian location, stable politics, and affordable labor force have transformed the country into an emerging manufacturing hub. Vietnam\u2019s manufacturing sector is reaping the benefits of a global manufacturing relocation wave from China. With its numerous advantages, Vietnam is emerging as a top choice for foreign businesses seeking new manufacturing hubs.<\/p>\n

Vietnam\u2019s strong economic ties with developed nations like South Korea and the United States, coupled with its supportive government policies and attractive incentives, have proven instrumental in luring major corporations like Samsung, Apple, Intel, and Nvidia to expand or establish new manufacturing plants in the country. This influx of foreign investment is fueling the growth of Vietnam\u2019s manufacturing industry and is expected to continue driving its expansion in the coming years.<\/p>\n

Within the service sector, trade activities were buoyant, and tourism rebounded strongly. This resurgence can be attributed to favorable visa policies and effective tourism stimulus initiatives. Noteworthy service subsectors driving the growth include:<\/p>\n