Chinese media highly appreciates Vietnam's spectacular growth

Thanks to strong exports and industrial production, coupled with increasing foreign investment, Vietnam's economic growth rate reached its highest level in two years, surpassing even the damage caused by Super Typhoon Yagi – Asia's strongest typhoon this year – to the Vietnamese economy.

The Vietnam Fruit Festival was recently held in Beijing, China, to promote the export of Vietnamese agricultural products to the consumer market of 1.4 billion people. (Photo: Ho Quan)

This is the highlight of an article titled "Thanks to strong exports and industrial production, Vietnam's GDP growth unexpectedly accelerated to 7.4% in the third quarter," published by "Wall Street Observer," a leading provider of financial and business information in China, and reprinted by numerous online newspapers in recent days.

The article cites data released by the General Statistics Office on October 6th, stating that Vietnam's Gross Domestic Product (GDP) in the third quarter is estimated to have grown by 7.4% compared to the same period last year, reaching the highest growth rate in the past two years, exceeding market forecasts of 6.1% and 7.09% for the second quarter of 2024. Additionally, the Consumer Price Index (CPI) in September increased by 2.63% compared to the same period last year, lower than market forecasts of 2.7%; total retail sales increased by 7.6% compared to the same period last year.

Vietnam's gross domestic product (GDP) in the third quarter is estimated to have grown by 7.4% year-on-year, reaching its highest growth rate in the past two years, exceeding market forecasts of 6.1% and the 7.09% forecast for the second quarter of 2024.

Contributing significantly to the spectacular growth results in the third quarter of this year, the investment and industrial sectors, especially manufacturing, played a key driving role. Data shows that export turnover and industrial production value increased by 10.7% and 10.8% respectively in September, while foreign direct investment reached US$17.3 billion in the first nine months of the year, an 8.9% increase compared to the same period last year.

According to the article, last September, Super Typhoon Yagi—Asia's strongest typhoon—swept through northern Vietnam, killing more than 300 people and disrupting power supply, agricultural production, and factories. The estimated economic damage reached $3.3 billion, and is expected to reduce the annual GDP growth rate by up to 0.15 percentage points, with the impact lasting into the fourth quarter of this year.

Due to the aftermath of the storm, many indicators such as the Purchasing Managers' Index (PMI) fell sharply in September, and trade-dependent factory activity declined for the first time in 5 months..., but overall in all three quarters, the Vietnamese economy was less affected, and export, industrial, and foreign investment sectors all unexpectedly accelerated.

The article cites an assessment by Mitsubishi UFJ Financial Group, stating that, after the storm... Following Typhoon Yagi, the State Bank of Vietnam may implement easing policies to support the economy by lowering interbank interest rates.

This year, Vietnam has attracted a continuously growing inflow of foreign investment, demonstrating strong economic resilience. Vietnam is a regional manufacturing hub for multinational companies such as Samsung Electronics, and Apple suppliers like Foxconn and Luxshare Precision.

"Watching Wall Street" (China)

This year, Vietnam has attracted a continuously growing inflow of foreign investment, demonstrating strong economic resilience. Vietnam serves as a regional manufacturing hub for multinational companies such as Samsung Electronics and Apple suppliers like Foxconn and Luxshare Precision. Vietnamese leaders have pledged to reduce logistics costs and improve infrastructure to attract more investment. The Vietnamese government's goal this year is to achieve GDP growth of 6% to 6.5%, higher than last year's approximately 5%, while also striving to keep inflation below 4.5%.

The article cites the International Monetary Fund (IMF) forecast that Vietnam's economy is expected to grow by 6.1% this year, slightly higher than previous estimates, thanks to "continued strong external demand, stable and robust foreign direct investment, and supportive government policies."

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