Vietnam’s economy is expected to strengthen to 6.0 percent growth in 2024 from 5.1 percent growth in 2023 on the back of improving external demand, a pickup in domestic demand and robust FDI inflows.

After weakening in the first half of 2023, the Vietnamese economy gathered momentum in the second half of the year. The economic growth is expected to pick up moderately in 2024. External demand is projected to increase, attributed to stronger US appetite for retail goods, the recovery of the global semiconductor market, and a rise in economic activities in the EU. Furthermore, an upsurge in tourist arrivals is expected to bolster consumption.

Inflationary pressure is expected to remain under control, owing to softening domestic demand, declining oil prices, and sufficient domestic food production. Consumer price inflation is expected to increase to 3.6 percent in 2024. Continued strong FDI inflows, a moderate export recovery, and an improvement of tourist arrivals will continue to support the balance of payments, contributing to a further accumulation of foreign reserves.

These conclusions are highlighted in the 2023 Annual Consultation Report on Vietnam.