Vietnam's Q1 Growth Hits 5-Year Record Fueled by Export Surge

Vietnam's economy witnessed a 5.66% growth in the first quarter of the year, a rate that exceeded the same period's growth last year, which stood at 3.41%. Despite disruptions in shipping due to turmoil in the Red Sea, Vietnam's exports have shown a robust increase of 17% year-on-year, reaching $93.06 billion, while imports have also grown by 13.9% to $84.98 billion. This has resulted in a trade surplus of $8.08 billion, a notable rise from the previous year's $4.93 billion.

The country's industrial and construction sector expanded by 6.28%, with the service sector following closely with a growth of 6.12%. The United States remained Vietnam's largest export market during this period. Furthermore, Vietnam's Prime Minister Pham Minh Chinh has assured foreign investors that the nation is taking steps to avoid a repeat of the previous year's power shortages.

While the first quarter growth was the strongest since 2019, it fell short of Standard Chartered Bank's projection of 6.1%. Despite external risks such as geopolitical tensions and climate change, the Vietnamese government is optimistic about its economy, setting a growth target of 6-6.5% for the year. The World Bank forecasts a 5.5% growth for Vietnam this year, while the International Monetary Fund projects the country's growth in 2024 to be 5.8%.