GDP in the fourth quarter of 2024 grows by 7.55% year-on-year. (Photo: VNA)

GDP growing quarter on quarter

Speaking at a press briefing on January 6, Huong stated that despite complex situations around the world with many risk factors, especially in the early months of 2024, Vietnam’s economy has shown a clear recovery trend, with growth gradually improving month on month and quarter on quarter.

Thanks to this, it has become a bright spot for economic growth in the region and the world, with a forecast growth rate higher than many countries in the region and an upward revision for the final months of the year as the economic situation gradually stabilises.

The gross domestic product (GDP) in the fourth quarter of 2024 grew by 7.55% compared to the fourth quarter of 2023, and maintained the upward trend from the previous quarters. It expanded by 5.98% in the first quarter, 7.25% in the second and 7.43% in the third.

For the entire year, the country’s GDP grew by 7.09% compared to 2023, exceeding the 6.5% target set by the National Assembly.

The service sector emerged as the primary growth driver for the whole year, contributing 49.46% to the overall GDP growth with a 7.38% expansion. Meanwhile, the industrial and construction and agro-forestry-fishery sectors contributed 45.17% and 5.37% to the country's GDP growth, with respective increases of 8.24% and 3.27%.

Vietnam's GDP reached more than 11.51 quadrillion VND (453.4 billion USD) in 2024, with per capita GDP rising to 114 million VND (4,490 USD), marking a 377 USD rise from 2023. Labour productivity also improved significantly, reaching 221.9 million VND (8,740 USD) per worker, up 726 USD from the previous year.

The economic structure in 2024 showed the dominance of the service sector, which accounted for 42.36% as compared to 42.3% in 2023. The industrial and construction sector made up 37.64% of the GDP, slightly increasing from the previous year’s figure of 37.58%, while the agro-forestry-fishery sector maintained a stable share of 11.86%.

Economy to accelerate, reach the finish line in 2025

To achieve the set goals, the GSO proposed the State Bank of Vietnam actively manage the monetary policy flexibly, stabilise the exchange rate and interest rates; control prices and the market, and ensure the major balances of the economy.

Huong emphasised the importance of closely monitoring global developments, as well as the fiscal and monetary policies of Vietnam's main trade and investment partners, and proactively preparing timely response plans for emerging situations.

In addition, attention should be paid to continuously updating forecast scenarios on growth and inflation to have timely responses to maintain stability and growth of the economy in the coming year; closely monitoring price developments of essential goods, especially petrol; developing plans to regulate supply sources, and limit sudden price hikes to minimise the impact on inflation and people's lives.

In the context of a globally complex and unpredictable situation with many risks and uncertainties, Vietnam needs to continue maintaining macroeconomic stability, as this is a crucial foundation for achieving the expected growth targets", noted Huong.