Vietnam's economic performance continued its strong recovery trajectory in the second quarter of 2024, with GDP growth reaching 6.93% YoY. This marks a significant rebound from the downturn experienced in early 2023, bringing the growth rate back to the pre-pandemic levels of 6.5%-7.0%. Key growth drivers included industrial and production activities, which saw a 7.5% YoY increase, construction, and the services sector, which grew by 6.6% YoY, driven by a resurgence in international tourism. The agriculture sector also contributed with a stable 3.4% YoY growth. Export activities surged by 14% YoY in June, and 14.5% YoY in H1 2024, driven by high demand in electronics, computers, wooden furniture, machines, and spare parts, particularly from the US, EU, and ASEAN regions. This strong export performance resulted in a healthy trade surplus of USD 11.6 billion in H1 2024 (~2.7% of 2023 GDP). Production saw an impressive recovery, with an 11% YoY increase, and the manufacturing sector expanding by 12.6% YoY in H1. The PMI rose sharply to 54.7 in June from 50.3 in May. Additionally, Foreign Direct Investment (FDI) disbursements, predominantly directed towards the manufacturing sector (70%), increased by 8.2% YoY to USD 10.8 billion in H1, indicating a promising outlook for future export growth.
On June 24th, 2024, it was announced that Apple's main supplier, Foxconn, will invest $383.3 million into a new factory in Bac Ninh province, specializing in producing printed circuit boards (PCB). The factory will have a total capacity of 2.79 million items per year and cover an area of 14.3 hectares in Nam Son - Hap Linh Industrial Park. This expansion is part of Foxconn's ongoing strategy to enhance its production capabilities in Vietnam, focusing on computing products. Foxconn entered the Vietnamese market in 2007 and has invested $3.2 billion in the country. As of now, the Taiwanese company operates factories in Bac Ninh, Bac Giang, and Quang Ninh, employing more than 60,000 workers, engineers, and experts. The new factory will not only boost local employment but also contribute to the overall economic growth and development of the region.
Laura Ranin