Socio-economic situation in the first 6 months of 2024

The global economy is facing numerous risks and uncertainties, that are negatively affecting sustainable growth. Factors such as intense competition between nations, geopolitical tensions, and the growing impact of climate change are contributing to this instability. Despite these challenges, international organizations forecast that the global economic growth will increase in 2024 compared to previous predicts. This optimistic outlook is driven by rising consumer demand, decreasing inflation rates, and improved efficiency in supply chains.

The Vietnam’s economy is forecasted to increase in 2024 compared to 2023. With the highest forecast growth rate being 6%. Vietnam’s socio-economic performance in the first six months of 2024 shows positive trends. Many sectors and industries have achieved significant progress, driving the overall of Vietnam’s economy.

Below is some general information about Vietnam’s socio-economic situation in the first six months of 2024, according to the press release of the General Statistics Office: 

I. Economic situation 

1. GDP:

• Increase 6.42%, only lower than the growth rate of 6.58% in the first six months of 2022 in 2020-2024. Of which, the agriculture, forestry, and fisheries sector increased by 3.38%, contributing 5.96%; The industrial and construction sector increased by 7.51%, contributing 44.28%; The service sector increased by 6.64%, contributing 49.76%.

2. Agriculture:

• Maintained growth, met domestic consumption needs, and served exports. The area of newly planted forests and wood harvests increased due to the improvement in wood export activities and the increase in wood material prices. Aquaculture activities have grown quite well, and localities have focused on investing in intensive and semi-intensive farming of some key aquatic products. 

3. Industry:

• Maintained a positive growth trend, especially in the processing and manufacturing industry. The added value of the industrial sector increased by 7.54% over the same period last year. This growth is driven by the strong performance in processing and manufacturing industry, which increased by 8.67%. The electricity production and distribution industry increased by 13.26%. The water supply and waste treatment industry increased by 7.13%. The mining industry alone decreased by 7.22%, reducing the overall increase by 0.24 percentage points. 

4. Enterprises:

• In the first six months of 2024, nearly 80.5 thousand newly registered enterprises with a total capital of 744.2 trillion VND and nearly 512 thousand employees, increased compared to the same period last year. More than 39.1 thousand enterprises were returning to operation, bringing the total number of newly established and returning enterprises to nearly 119.6 thousand, an increase of 5.3%. Also in these six months, 71.4 thousand enterprises were temporarily suspended business. Additionally, nearly 28.8 thousand enterprises ceased operations awaiting dissolution, while 10.2 thousand enterprises were completely dissolved. 

5. Trade, transportation, and tourism:

• Maintained high growth compared to the same period last year; in which tourism recovered strongly, positively contributing to economic growth. Total retail sales of goods and consumer service revenue increased by 8.6%, reaching 3,098.7 trillion VND, freight transportation increased by 15.6% in transportation, and international visitors to Vietnam increased by 58, 4%. 

6. Financial market:

• Global financial conditions are gradually easing, and some state-owned banks plan to gradually reduce lending interest rates. Mobilization interest rates and lending interest rates maintain a downward trend, exchange rates are managed proactively and flexibly, contributing to macroeconomic stability. Insurance business activities are stable, and the stock market maintains a growth trend following the recovery momentum of the economy.
• As of 24 June 2024, capital mobilization by credit institutions increased by 1.50% compared to the end of 2023; Credit growth reached 4.45%. Insurance premium revenue in the first six months of the year decreased by 3.8%, of which the non-life insurance sector increased by 11.2% and life insurance decreased by 10.5%. On the stock market, the VN-Index as of 26 June 2024 increased by 11.6%, market capitalization decreased by 6.8%, and the average transaction value in June 2024 increased by 7.6%, from the beginning of the year until now, an increase of 38.3%.

7. The implemented investment capital for the entire society:

• Estimated to reach 1,451.3 trillion VND, an increase of 6.8% compared to the same period last year, higher than the 4.8% increase in the same period of the first six months of 2023. Domestic production and business activities across numerous sectors have shown clear signs of recovery in the first half of 2024. This positive momentum is expected to attract and facilitate increased investment in the Vietnam’s economy.

8. Foreign direct investment capital:

• Estimated to reach 10.84 billion USD, up 8.2% over the same period last year, reaching the highest level in the first six months of the year from 2020 to the present. 

9. Import and export:

• The export and import of goods and services increased by 20% compared to the same period last year. Many key export products showed a stable upward trend, meeting the increasing demand for global trade in goods after a period of decline 

10. Consumer price index (“CPI”):

• CPI in June 2024 increased by 1.40% compared to December 2023 and 4.39% over the same period last year. The main reason is said to be the increase in pork prices and medical service prices in some provinces/cities. 

II. Social situation 

1. Labor:

• The average income of laborers is 7.5 million VND/month, an increase of 7.4%, equivalent to an increase of 490 thousand VND compared to the same period last year. The unemployment rate among the working age in the first six months of 2024 is 2.29%, equivalent to the same period last year. 

2. Living standards of the population:

• Improved compared to the same period in 2023. The proportion of households assessed to have income in the first six months of this year remained unchanged and increased compared to the same period in 2023 at 95.6%, an increase of 1.1 percentage points compared to the same period last year. Social welfare programs continue to receive attention from the Government. 

3. Culture and sports:

• The preservation and promotion of cultural values have always been given attention; grassroots sports activities are maintained, and high-performance sports have achieved notable accomplishments. 

4. Traffic accidents:

• There was a 15.6% decrease in the number of traffic accidents. Additionally, the number of fatalities from these accidents decreased by 10.6% compared to the same period last year.

5. Natural disasters, environmental pollution, fires, and explosions:

• Natural disasters caused significant hardship for numerous communities during the first six months of 2024. In the first six months of 2024, natural disasters caused 68 deaths and missing persons, 56 injuries. Additionally, it damaged 28.1 thousand houses. With estimated property damage of 1,723.3 billion VND, nearly 2.5 times higher than the same period last year.
• Environmental violations and public safety incidents remained concerns. Authorities detected 12,650 environmental violations. Authorities handle 12,650 cases with total fines amounting to 156.5 billion VND, an increase of 5.8% compared to the same period last year. In the first six months of 2024, there were 2,231 fire and explosion incidents nationwide. In the result, it caused 55 deaths, 52 injuries. With an estimated property damage of 127.9 billion VND, a decrease of 36.5% compared to the same period last year. 

Source:

Press Release on the Socio-Economic Situation in the Second Quarter and the First Six Months of 2024