GDP grows by over 7 per cent, exceeds target for 2024

Customers order food at a commercial centre in HCM City. The service sector contributed nearly half of the added value of the economy in 2024. — VNA/VNS Photo Mỹ Phương

Gross domestic product (GDP) of Việt Nam grew by 7.09 per cent in 2024 compared to the previous year, exceeding the 6.5 per cent target set by the National Assembly, according to data released by the General Statistics Office (GSO) on Monday.

GDP in the fourth quarter of 2024 grew by 7.55 per cent compared to the fourth quarter of 2023, and maintained the upward trend from the previous quarters (it grew by 5.98 per cent in the first quarter, 7.25 per cent in the second and 7.43 per cent in the third).

For the entire year, Việt Nam’s GDP grew by 7.09 per cent compared to 2023, which was relatively impressive for the 2011-24 period, only lower than the rates of 2018 (7.47 per cent), 2019 (7.36 per cent) and 2022 (8.54 per cent).

Of the total increase in the added value of the economy in 2024, the agricultural, forestry, and fishery contributed 5.37 per cent, the industrial and construction sector 45.17 per cent and the service sector 49.46 per cent.

The agricultural, forestry and fishery sectors achieved a positive growth rate of 3.27 per cent despite being affected by natural disasters, especially Typhoon Yagi in September 2024. The output of many agricultural products increased significantly, livestock development remained stable, and aquaculture production grew substantially.

The industrial and construction sector grew by 8.32 per cent compared to the previous year, which was just slightly lower than the 8.52 per cent growth rate in 2022 during the 2019-24 period.

The service sector grew by 7.38 per cent, higher than the 6.91 per cent growth rate of 2023.

The total value of GDP in 2024 was estimated to reach VNĐ11.5 quadrillion (over US$476 billion). The GDP per capita in 2024 was estimated to be VNĐ114 million per person ($4,700), an increase of $377 compared to 2023.

GSO general director Nguyễn Thị Hương said at the press briefing on Monday: “Despite complex situations around the world with many risk factors, especially in the early months of 2024, Việt Nam’s economy had shown a clear recovery trend, with growth gradually improving month by month and quarter by quarter.

"Thanks to this, Việt Nam has become a bright spot for economic growth in the region and globally, with a forecasted growth rate higher than many countries in the region and an upward revision for the final months of the year as the economic situation gradually stabilises."

GSO general director Nguyễn Thị Hương speaks at the press briefing on the socio-economic development of Việt Nam in 2024 in Hà Nội on Monday. — VNS Photo Bảo Hoa

The average Consumer Price Index (CPI) in the fourth quarter of 2024 increased by 2.87 per cent compared to the same period last year. The average CPI for 2024 increased by 3.63 per cent compared to 2023, which was lower than the National Assembly's targets for controlling inflation rise between 4 and 4.5 per cent.

Core inflation in December 2024 increased by 0.25 per cent compared to the previous month, and by 2.85 per cent compared to the same period last year.

On average, in 2024, core inflation increased by 2.71 per cent compared to 2023, lower than the overall average CPI increase (3.63 per cent), mainly due to the impact of prices for food, foodstuffs, electricity and education and healthcare services, which contributed to the rise in CPI but are excluded from the core inflation calculation due to being managed by the State.

Head of GSO’s Price Statistics Management Nguyễn Thu Oanh said: “Inflation had remained under control, even below the permissible rise levels set by the National Assembly, and was suitable for the development level of Việt Nam.”

The target for inflation control this year has been set at 4.5 per cent, Oanh added.

“With the State’s experience in adjusting prices, this is not a very challenging goal and it is achievable. But we must stay vigilant since there are factors out of our control that will create inflationary pressures,” she said, citing military conflicts and trade competitions between major countries that may disrupt the global supply chain and increase logistic costs.

Total social investment in 2024 reached VNĐ3.69 trillion ($145 million), an increase of 7.5 per cent compared to 2023, higher than the 6.6 per cent increase in the same period of 2023, reflecting the positive recovery of business production activities this year compared to the previous year.

Foreign direct investment (FDI) disbursed in the country in 2024 reached $25.35 billion, up 9.4 from the previous year and was the highest level since 2020.