Vietnam's economy in 2024: Poised for a new era?

With GDP growth reaching 7.1% - surpassing both government targets and international financial institutions' forecasts, Vietnam emerged as ASEAN's most dynamic economy in 2024. This growth was driven by dynamic exports and foreign investment. Rising revenues helped limit the budget deficit to 3.6% of GDP, while public debt remained low at 37% of GDP. Due to significant capital outflows, the level of foreign exchange reserves is low (2.5 months of imports). Highly dependent on the US market (30% of exports), Vietnam could also be affected by a tightening of US trade policy. Last but not least, the “new era” of double-digit growth called for by the new leadership will require us to go beyond the reforms initiated to date, in order to create stronger, higher value-added domestic growth drivers.

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