According to the report, Vietnam's economy showed signs of recovery in the first 8 months of the year, with notable improvements across various indicators. Notably, The economic growth rate broke out beyond expectations with GDP in the first 6 months of the year reaching 6.42 percent over the same period (only lower than the growth rate of 6.58 percent in the first 6 months of 2022 in the past 5 years).
After nearly 2 years, the industrial and construction sector has restored its leading role in driving the growth of the entire economy alongside the service sector, recording the highest growth rate among the three sectors at 7.51 percent in the total value added growth of the entire economy (the growth rate in the same period in 2023 was 1.13 percent).
In addition, trade activity in the first seven months of 2024 has picked back up from the low base level in the same period last year. The total turnover of goods exported and imported increased by double digits to reach US$439.88 billion with exports reaching $226.98 billion up 15.7 percent, and imports reaching $212.9 billion up 18.5 percent.
In addition, there was a positive reversal in business registration activities during the second quarter as compared to the first, when more businesses joined or re-joined the market than withdrew, indicating an improvement and a return of confidence in the business community.
Based on the findings of Vietnam Report's survey, a majority of businesses (73.4 percent) experienced an improved business performance in the first half of this year compared to the same period last year. This was reflected by an increase in revenue for 73.4 percent of businesses and maintained profit growth for 60.3 percent of businesses. In contrast, there was a significant decrease in the percentage of businesses with declining revenue and profit compared to the survey results from 2023 for the same time period.
The latest survey results from Vietnam Report reveal a marked improvement in business sentiment across the country. Expectations for economic growth have gradually shifted from modest projections to more positive scenarios. Notably, many businesses now consider a growth rate of 6 percent-6.5 percent in 2024 to be the most feasible outlook for Vietnam's economy.
The proportion of businesses anticipating robust growth, defined as 6 percent to 6.5 percent and exceeding 6.5 percent, surged dramatically, increasing by 17.6 percent and 14.3 percent respectively compared to the beginning of the year. Moreover, a remarkable 58.3 percent of businesses project their profits in the latter half of the year to outperform the first half, signaling a promising economic trajectory.
The recent upswing in macroeconomic conditions has breathed new life into the business community, igniting a renewed sense of optimism and confidence. Enterprises across the spectrum are now basking in the warm glow of a strengthening market, eagerly anticipating the accelerated revival of the economy.
