Vietnam's GDP growth expected to bounce back to 6.5% in 2024

Posted on October 30, 2023   |  

Vietnam's GDP growth is poised to slow down, moving from 8% in 2022 to 4.7% this year. 

This deceleration primarily results from reduced exports and production, driven by diminished global demand for products labeled "Made in Vietnam."

During the first 9 months of 2023, Vietnam experienced a 10% decline in exports, with exports to the U.S., its largest market, plummeting by 20%.

In the same period, domestic consumption growth remained relatively consistent year on year, contrasting with the pre-pandemic growth rate of 8-9%.

Notably, foreign tourist arrivals have made a recovery, reaching nearly 70% of pre-COVID-19 levels this year, contributing to the 2023 GDP boost.

Optimism surrounds the potential for an export resurgence and a revival in Vietnam's manufacturing sector. 

Projections suggest a transition from stagnation this year to 8-9% growth in 2024, though slightly below the pre-pandemic average of 12%.