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Kenno Vietnam Pulse | April 2024

Written by Laura Ranin | May 6, 2024 2:30:00 AM

Kenno Vietnam Pulse - April 2024

Vietnam's economy showcased robust growth in the first quarter of 2024, with its GDP expanding by 5.66%, the fastest Q1 increase in five years. This period also saw a significant 13.4% year-on-year rise in registered foreign direct investment (FDI) to reach $6.2 billion. The industrials and services sectors were major growth drivers, with the former registering a 6.28% growth. Noteworthy contribution came from processing, which increased 6.98% YoY. The positive economic trend was further supported by an increase in export and retail sales, along with a high volume of new business registrations totalling 36,224 (+7% YoY). Additionally, Vietnam attracted substantial foreign investments, particularly in manufacturing and real estate, highlighting ongoing confidence in its market potential.

On April 11, 2024, a court in Ho Chi Minh City sentenced business executive Truong My Lan to death for her involvement in a significant financial fraud case. As the chairwoman of Van Thinh Phat Holdings Group, Lan was found guilty of embezzling approximately $12 billion from Saigon Joint Stock Commercial Bank, significantly impacting Vietnam's financial sector. This case is one of the most high-profile instances of Vietnam's rigorous anti-corruption efforts, highlighting the government's stringent stance against corruption and financial crimes. In addition to her capital sentence, Lan received 20-year sentences for bribery and violating lending regulations, and she was ordered to pay nearly $27 billion in damages (~6% of 2023 GDP). This sentencing underscores Vietnam’s commitment to maintaining financial integrity and trust as it seeks to attract more international investment.