Chinese media praises Vietnam’s spectacular growth

This is the highlight of the article published by Wall Street Observer - China's leading financial and business information provider, and republished by a series of online newspapers in recent days.

The article highlighted that thanks to strong exports and industrial production, Vietnam's GDP growth unexpectedly accelerated to 7.4% in the third quarter.

The article cited data released by the General Statistics Office on October 6, stating that Vietnam's third-quarter gross domestic product (GDP) is estimated to have grown by 7.4% year-on-year, the highest growth rate in the past two years, higher than the market forecast of 6.1% and that of the second quarter of 2024 at 7.09%.

In addition, the CPI in September increased by 2.63% year-on-year, lower than the market forecast of 2.7%; total retail sales increased by 7.6% year-on-year.

Vietnam's third-quarter gross domestic product (GDP) is estimated to have grown by 7.4% year-on-year, the highest growth rate in the past two years, higher than the market forecast of 6.1% and that of the second quarter of 2024 at 7.09%.

Contributing mainly to the spectacular growth results in the third quarter of this year, the two sectors of investment and industry, especially the manufacturing industry, played a key role. Data showed that export turnover and industrial production value increased by 10.7% and 10.8%, respectively, in September, while foreign direct investment reached 17.3 billion USD in the first nine months of the year, up 8.9% over the same period last year.

According to the article, last September, super typhoon Yagi - the strongest storm in Asia - swept through northern Vietnam, killing more than 300 people and disrupting power supply, agricultural production and factories, with estimated economic losses of up to 3.3 billion USD, expected to reduce the GDP growth rate by 0.15 percentage points for the whole year, with the impact lasting until the fourth quarter of this year.

Due to the impact of the storm's aftermath, many indicators, such as the Purchasing Managers' Index (PMI), fell sharply in September. Factory activity dependent on trade fell for the first time in five months, but overall, in the three quarters, the Vietnamese economy was less affected, the export, industrial and foreign investment sectors all accelerated unexpectedly.

The article cited the assessment of Mitsubishi UFJ Financial Group that, after Typhoon Yagi, the State Bank of Vietnam could apply easing policies, supporting the economy by lowering interbank interest rates.

This year, Vietnam attracted a continuous increase in foreign investment flows, making the economy show strong resilience. Vietnam is a regional manufacturing hub for multinational companies such as Samsung Electronics and Apple suppliers, such as Foxconn and Luxshare Precision. Vietnamese leaders have pledged to cut logistics costs and improve infrastructure to attract more investment. The Vietnamese government's target for this year is to achieve GDP growth of 6% to 6.5%, higher than last year's rate of around 5% while striving to control the inflation rate below 4.5%.

The article cited the International Monetary Fund (IMF) forecast that Vietnam's economy is expected to grow 6.1% this year, slightly higher than its previous estimate, thanks to continued strong external demand, stable and solid foreign direct investment and the Government's support policies.