VIETNAM’S SOCIAL-ECONOMIC LANDSCAPE IN 2024: RESILIENCE ADMID CHALLENGES.

Vietnam’s Socio-Economic Landscape in 2024: Resilience Amid Challenges

Vietnam's socio-economic achievements in 2024 highlight its remarkable resilience and adaptability in a rapidly changing global environment. From notable GDP growth and international trade accomplishments to improved living standards and poverty reduction, the country successfully balanced economic expansion with social development.

This article offers a detailed overview of Vietnam’s socio-economic performance in 2024, focusing on key areas such as economic growth, social conditions, employment, business dynamics, and international trade.

Impressive Economic Growth Despite Global Challenges

Vietnam's economy demonstrated exceptional resilience in 2024, achieving a GDP growth rate of 5.8%, surpassing the projected 5.0%. Although slightly below the long-term average due to global uncertainties, this growth cemented Vietnam's status as one of Southeast Asia’s fastest-growing economies.

Sectoral Contributions to GDP Growth

• Agriculture, Forestry, and Fisheries:
  Growing by 4.2%, this sector—Vietnam’s economic backbone—benefited from innovative farming techniques and sustainable practices. The export of rice, coffee, and seafood to key markets expanded, ensuring food security while strengthening Vietnam's global presence.
• Industry and Construction:
  A growth of 5.5% was driven by substantial investments in infrastructure and a thriving manufacturing sector. Key contributors included the electronics and garment industries, which fueled exports and created jobs.
• Services:
  Leading the charge with 7.6% growth, the service sector flourished thanks to tourism recovery, increased consumer spending, and digital transformation in financial services and retail.

Vietnam's Social Conditions: Progress and Priorities

Vietnam’s population reached approximately 101 million in 2024, with an urbanization rate of 41%, reflecting the ongoing shift from rural to urban living. Industrialization and improved access to education and healthcare drove this trend.

Key Social Achievements

• Poverty Reduction: The national poverty rate dropped to 4.6% from 5.1% in 2023, aided by programs focusing on education, rural development, and social welfare.
• Wage Growth: Average monthly income increased by 7.8%, reaching 7.6 million VND, with notable gains in manufacturing, services, and technology.

Priority Sectors

• Healthcare: Investments in rural healthcare systems improved access to medical services, leading to better health outcomes nationwide.
• Education: Vietnam continued emphasizing STEM education and maintained high literacy rates, preparing its workforce for future economic demands.

Labor Market Recovery and Employment Trends

Vietnam’s labor market showed significant improvement, with the unemployment rate dropping to 2.3%. Urban unemployment fell to 3.1%, while rural unemployment was even lower at 1.8%.

• Job Creation: The services and manufacturing sectors led employment growth, offering stable jobs with competitive wages. The technology sector experienced rapid expansion, driven by startups and multinational corporations.
• Challenges: Despite progress, skill mismatches and the need for digital literacy persisted. Collaborative efforts between the government and private sector focused on upskilling workers for high-demand roles in technology and services.

Enterprise Dynamics: New Businesses and Challenges

Vietnam saw the establishment of 145,000 new enterprises in 2024, a 14.5% increase from 2023. These businesses registered a combined capital of 1.8 quadrillion VND, reflecting strong investor confidence.

• Business Resurgence: 50,000 enterprises resumed operations, signaling improving economic conditions.
• Business Closures: However, 144,100 businesses temporarily suspended operations, a 13.7% increase from 2023. Among these, 39,000 enterprises awaited dissolution, while 54,800 completed the process. Rising operational costs and limited credit access were cited as primary challenges.

Retail, Trade, and Consumer Spending

Retail Sales

The retail sector recorded robust growth, with total consumer goods and services sales reaching 5,960.2 trillion VND, a 9.3% increase from 2023.

• Retail goods contributed 77.4% of the total, driven by strong domestic demand.
• Tourism services grew by 11.9%, supported by increased international and domestic travel.

Inflation Control

Inflation remained stable, with the Consumer Price Index (CPI) rising by 3.50%, thanks to effective monetary policies mitigating inflationary pressures.

International Trade: A Bright Spot

Vietnam’s total import-export turnover reached $656.1 billion, a 1.5% increase compared to 2023.

• Exports: Valued at $336.5 billion (+2.4%), driven by electronics, textiles, and agricultural products.
• Imports: Totaled $319.6 billion (+0.5%), primarily comprising machinery and raw materials.

Vietnam achieved a trade surplus of $16.9 billion, reinforcing its position as a key player in global supply chains.

Investment Climate

Social investment capital rose by 8.9%, contributing 34.7% of GDP. Growth was recorded across state, non-state, and foreign sectors, reflecting investor confidence.

• FDI Growth: Registered capital reached $29.5 billion, up 13.9% year-on-year.
• Key Sectors: Manufacturing, real estate, and renewable energy attracted the majority of FDI.

Vietnam’s socio-economic landscape in 2024 showcases a story of resilience and progress, as the nation thrives amid global challenges. Through strategic investments, social welfare improvements, and robust international trade, Vietnam solidified its position as a dynamic and promising economy.

Note: Data Reliability: All figures and data presented in this article are sourced exclusively from the General Statistics Office (GSO), the only official provider of socio-economic data in Vietnam. There are no independent studies or alternative sources that verify these data.