Vietnam Sees Surge in FDI and Economic Growth in H1 2024

At a recent meeting on July 6, the Ministry of Planning and Investment (MPI) announced a significant rise in foreign direct investment (FDI) for the first half of 2024. Registered FDI reached nearly $15.2 billion, marking an over 13% increase year-on-year. Newly registered FDI surpassed $9.5 billion, up almost 47%, while implemented FDI was approximately $10.8 billion, an 8.2% rise.

This growth is largely driven by major investments and expansion commitments in the semiconductor, electronics, and energy sectors. Deputy Minister Phuong highlighted the strong confidence of foreign investors in Vietnam’s market.

“International financial organizations are optimistic about Vietnam due to three key factors: our strategy to diversify supply chains, promising economic growth prospects, and strong economic fundamentals,” Phuong stated. “We anticipate FDI for the entire year to reach $39 billion to $40 billion, surpassing 2023.”

Phuong also discussed Vietnam’s GDP growth, which has outperformed expectations. GDP growth for the second quarter was estimated at 6.93% year-on-year, with a 6.42% increase for the first half of the year, exceeding the upper target of 6%.

The MPI has outlined two growth scenarios for the remainder of the year. The first scenario projects an annual growth rate of 6.5%, with the third quarter at 6.5% and the fourth quarter at 6.6%. The second scenario is more optimistic, forecasting an annual growth rate of 7%, with third quarter growth at 7.4% and the fourth quarter at 7.6%.

Vietnam’s impressive FDI inflows and robust economic growth in the first half of 2024 underscore the country’s attractiveness to foreign investors and its strong economic performance. With optimistic growth projections for the rest of the year, Vietnam is poised to exceed its economic targets and continue its upward trajectory.