Source: AFP
Vietnam’s economy grew by more than six percent in the first half of 2024, government data showed on Saturday, as analysts said more reforms were needed to further boost the economy.
The global manufacturing hub 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 statement.
The rise was the result of “many measures” taken to improve supply chains, the foreign exchange market and public investment, the GSO said.
Industrial production rose 7.5 percent, while foreign investment rose 8.2 percent compared with the same period last year, the new data showed.
To maintain and promote growth, the government needs to focus on the core sectors of manufacturing and processing, logistics and hospitality, said VPBank Securities analyst Duong Thien Chi.
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Policymakers should also consider “non-measurable variables” such as the US Federal Reserve’s moves to cut interest rates, Duong told AFP.
The United States was Vietnam’s largest export market in the first half of 2024.
The Southeast Asian nation earned $190 billion from exports in that period, up 14.5 percent year-on-year.
Despite that improvement, an International Monetary Fund analyst said Vietnam “needs a new wave of reforms” after a visit to the country in late June.
“Increasing productivity, further investing in human and natural capital, and incentivizing private investment in renewable energy are key,” said the IMF’s Paulo Medas.
Vietnam is targeting growth of between six and 6.5 percent this year, compared to 5.05 percent seen in 2023.
Source: AFP
