Vietnam's economic outlook appeared brighter in May, continuing its consistent recovery momentum since Q3 2023. Exports increased by 14% YoY in May, with a 15.2% YoY increase over the first five months (5M) of 2024. Export growth was high for electronics and computers (+33% YoY) and wooden furniture (+24% YoY). The US and EU saw the highest export growth rates, at 21% and 16% YoY, respectively. Import growth, with 90% for manufacturing export products, was 18% YoY faster than export growth, suggesting a promising export outlook. Vietnam maintained a trade surplus of $8 billion USD in the first five months of 2024. Production continued to recover, growing 6.8% YoY, with the manufacturing sector increasing by 7.3% over the same period. The PMI remained steady at 50.3 in May. FDI disbursement increased sustainably by 7.8% YoY, reaching $8.3 billion USD in 5M 2024. These positive trends in FDI disbursement, exports, and production are expected to drive further job creation and stronger domestic demand in the coming months.
On May 19th, 2024, Korean conglomerate Hyosung announced plans to manufacture automated teller machines (ATMs) and build a large data center in Ho Chi Minh City. Hyosung, the third largest South Korean investor in Vietnam, has shifted nearly all its factories from South Korea to Vietnam. The company has invested over $4 billion in Vietnam, focusing on raw materials, chemicals, industrial power systems, and textiles. Hyosung's latest investment includes a $730-million bio-based production plant in Ba Ria-Vung Tau, showcasing its commitment to Vietnam’s economic development.
Laura Ranin