HANOI, Vietnam — Vietnam’s economy expanded by 7.83% in the first quarter of 2024, marking its strongest Q1 performance since 2011, according to government data released Wednesday. The growth was fueled by robust manufacturing output and a rebound in exports, positioning the Southeast Asian nation as a regional outperformer amid global economic uncertainty.
The General Statistics Office (GSO) attributed the surge to a 9.45% increase in industrial production, with electronics and textiles leading the charge. “Foreign direct investment continues to flow into Vietnam’s manufacturing sector,” noted an analyst at Saigon Securities, speaking on condition of anonymity due to company policy. “This reflects confidence in Vietnam’s long-term competitiveness.”
Exports rose 17% year-on-year to $93 billion, with the U.S. and China remaining top trading partners. The services sector grew 6.12%, boosted by a record 4.6 million international tourists — a 72% jump from 2023’s post-pandemic recovery period.
However, officials cautioned about challenges ahead. “Inflation pressures are building, with Q1 CPI at 3.77% — nearing the government’s 4% ceiling,” a finance ministry spokesperson told reporters. Analysts warn that global demand could soften in coming months, particularly for electronics, which account for 35% of Vietnam’s export revenue.
The Asian Development Bank recently revised its 2024 Vietnam growth forecast upward to 6.8%, but some private economists suggest the country might exceed that pace if export momentum holds. “The real test will come in Q3 when seasonal factors fade,” said a Singapore-based emerging markets strategist. “For now, Vietnam is benefiting from supply chain diversification trends.”