Brian Jeffrey
The Vietnamese government is optimistic about the country’s economic growth, expecting a rate of 6.5-7 percent for 2024, surpassing the initial 6-6.5 percent target set by the National Assembly.
The recent economic recovery is attributed to the impressive growth of the service sector, with growth rates of 10 percent in 2022, 6.82 percent in 2023, and 6.64 percent in the first half of 2024.
Furthermore, industrial production and construction experienced robust recovery in the third quarter of 2023, with the added-value growth rate reaching 6.86 percent in the fourth quarter of 2023 and 7 percent in the first half of 2024.
The growth has been driven by the strong development of the service sector and industrial production over the past few quarters.
The agriculture, forestry, and fisheries sector has also played a significant role in the economic growth, showing an increasing contribution to the national economy over the years.
There are notable trends in economic indicators, particularly in relation to GDP growth.
An interesting observation is the relationship between the Index of Industrial Production (IIP) and industrial value added (VA), where the IIP growth rate has historically exceeded industrial VA growth.
Another trend is the disparity between the growth rates of the service sector’s VA based on comparable prices and revenue growth rates excluding price fluctuations.
These unusual trends occur during challenging economic periods when the growth rate is not as high as anticipated.
