Vietnam’s economic performance in November 2024: Key insights

Vietnam’s economic performance in November 2024: Key insights

November 2024 showcased significant developments across various sectors of Vietnam’s economy. From industrial production to foreign investments and trade, the data reflects robust growth despite challenges in certain areas. Below is an in-depth analysis of the key economic indicators for the month.

Industrial production

The Industrial Production Index (IIP) for November 2024 recorded a month-on-month increase of 2.3% and a substantial year-on-year growth of 8.9%. Cumulatively, for the first eleven months of 2024, the IIP surged by 8.4%, a significant rebound compared to the 0.9% growth during the same period in 2023. Key contributions included:

• Manufacturing and processing: Up 9.7%, contributing 8.5 percentage points to the overall growth.
• Electricity production and distribution: Increased by 10.2%, adding 0.9 percentage points.
• Water supply and waste management: Grew by 9.6%, contributing 0.2 percentage points.
• Mining sector: Contracted by 7.3%, reducing overall growth by 1.2 percentage points.

Industrial production growth was observed in 60 provinces, while three provinces experienced declines. Employment in industrial enterprises as of November 1, 2024, rose by 0.7% month-on-month and 4.4% year-on-year.

Business registration

Business activity reflected mixed trends:

• New enterprises: Approximately 11,200 new businesses were established in November, a decline of 21.3% compared to October and 22.6% year-on-year.
• Reactivated enterprises: Over 7,700 businesses resumed operations, marking a 10.9% decrease month-on-month but a 17.4% increase year-on-year.
• Suspended businesses: About 4,243 companies temporarily ceased operations, a drop of 22.2% month-on-month and 5.9% year-on-year.
• Dissolved enterprises: Over 1,910 businesses completed dissolution procedures, reflecting a 3.9% decrease month-on-month but a 14.2% rise year-on-year

Cumulatively, the first eleven months saw over 218,500 businesses established or resuming operations, a 7.4% increase year-on-year. Conversely, 173,200 enterprises exited the market, up 9.1% compared to the same period in 2023.

Investment landscape

Domestic public investment

Public investment from the state budget remained a priority, with November’s disbursed capital estimated at VND 75.9 trillion, a 5.6% increase year-on-year. Over the first eleven months, VND 572 trillion was disbursed, accounting for 73.5% of the annual plan and marking a 2.4% increase year-on-year.

Foreign Direct Investment (FDI)

• Registered FDI: Total FDI (including new, adjusted capital, and share acquisitions) reached USD 31.38 billion by November 30, 2024, a modest 1.0% growth year-on-year.
• Disbursed FDI: Realized FDI during the eleven months totaled USD 21.68 billion, up 7.1% year-on-year.

Outbound investment

Vietnamese businesses actively invested abroad, with 151 new projects approved and a total registered capital of USD 555.2 million. Additionally, 22 projects adjusted their capital by USD 43.5 million, bringing total outbound investment to USD 598.7 million, a 51.6% surge compared to the same period last year.

Trade performance

Retail sales

Retail sales of consumer goods and services in November reached VND 562 trillion, an 8.8% increase year-on-year. For the eleven months, total retail sales were estimated at VND 5,822.3 trillion, growing by 8.8% compared to the same period in 2023. When adjusted for inflation, the growth stood at 5.8%.

Exports and imports

The preliminary total trade turnover in November stood at USD 66.4 billion, reflecting a 4.1% decrease month-on-month but a 9.0% increase year-on-year. Over the eleven months, trade turnover reached USD 715.55 billion, up 15.4% year-on-year. Key highlights include:

• Exports:
  • November exports totaled USD 33.73 billion, down 5.3% month-on-month but up 8.2% year-on-year.
  • Eleven-month exports reached USD 369.93 billion, a 14.4% increase year-on-year.
  • The domestic sector grew by 20.0%, contributing USD 103.88 billion, while the foreign-invested sector (including crude oil) grew by 12.4%, contributing USD 266.05 billion.
• Imports:
  • November imports amounted to USD 32.67 billion, down 2.8% month-on-month but up 9.8% year-on-year.
  • Eleven-month imports stood at USD 345.62 billion, a 16.4% increase year-on-year.

Trade balance

Vietnam recorded a trade surplus of USD 1.06 billion in November, contributing to a cumulative eleven-month surplus of USD 24.31 billion. The foreign-invested sector maintained a surplus of USD 46.48 billion, while the domestic sector experienced a deficit of USD 22.17 billion.

Consumer Price Index (CPI) and Financial Indicators

• CPI: November’s CPI rose by 0.13% month-on-month, 2.65% from December 2023, and 2.77% year-on-year. Average CPI for the eleven months increased by 3.69% year-on-year.
• Gold Prices: Increased by 2.26% month-on-month and 38.2% year-on-year, with an eleven-month average growth of 28.42%.
• USD Index: Climbed by 1.76% month-on-month and 3.63% year-on-year, averaging a 4.97% increase over eleven months.

Vietnam’s economic indicators for November 2024 reflect continued resilience and growth across key sectors. While industrial production and trade showed robust performance, challenges in business registrations and public investment execution highlight areas for improvement. As Vietnam continues to attract foreign investment and expand its trade horizons, its economic trajectory remains promising.

Source: GSO

Compiled by Vanguard Business Information