Vietnam’s economy showcased impressive resilience and growth in 2024, driven by robust GDP expansion, strong trade performance, significant foreign direct investment (FDI), a thriving manufacturing sector, infrastructure development, and a dynamic labor market.
GDP Growth
Vietnam’s GDP growth exceeded expectations in 2024, with the Asian Development Bank (ADB) projecting a growth rate of 6.4%, driven by a resurgence in export-led manufacturing and ongoing fiscal stimulus measures. This growth reflects the country’s ability to navigate global economic challenges and capitalize on its strengths.
Trade
Vietnam’s exports reached US$33.7 billion in November, bringing the year-to-date total to US$369.9 billion, a 14.4% increase compared to 2023. This growth was driven by double-digit gains in exports of computers, electrical products and their components, telephones, mobile phones and parts, as well as machinery, equipment, tools, and instruments.
By October, exports to key markets, including the US and Europen, saw significant increases. For instance, exports to Germany alone totalled over $707.56 million in October, and hit the record in June with $763.89 million. Key export categories included electronics, machinery, textiles, and agricultural products, highlighting Vietnam’s diversified export base.
Foreign Direct Investment (FDI)
FDI remained a cornerstone of Vietnam’s economic growth. The country attracted $31.38 billion in FDI over the first 11 months of 2024, a 1% increase compared to the same period last year. This investment spanned various sectors, including manufacturing, high-tech solutions, and renewable energy, underscoring Vietnam’s appeal as a destination for foreign investors.
In 2024, German investment in Vietnam has seen significant growth, with 479 German investment projects in the country, reflecting an increase of 19 projects compared to the same period last year. This surge is driven by Vietnam's strong commitment to enhancing its global competitiveness through initiatives like the EU-Vietnam Free Trade Agreement (EVFTA). This agreement not only provides German businesses with preferential access to Vietnam but also positions the country as a gateway to broader Asian markets.
Manufacturing
The manufacturing sector continued to be a primary driver of economic growth. The S&P Global Vietnam Manufacturing Purchasing Manager’s Index (PMI) surged to 54.7 in June 2024, indicating strengthened business conditions and marking a third consecutive month of growth. Key manufacturing outputs included electronics, machinery, and textiles, which saw increased demand both domestically and internationally.
Infrastructure Development
Infrastructure development played a crucial role in supporting Vietnam’s economic growth. Significant investments were made in transportation, energy, and urban development projects. These improvements not only enhanced connectivity and efficiency but also attracted further investments and facilitated trade.
Labor Market
The labor market showed signs of recovery, with employment growth stabilizing after a challenging period. Although employment growth slowed to 0.3% in Q1 2024 from 2.2% in Q1 2023, the overall outlook improved as the year progressed. Wage growth and labor productivity also saw positive trends, contributing to increased consumer spending and economic stability.
Opportunities and Challenges - Outlook 2025
For German companies, sustainable investment has become a great focus, particularly in renewable energy, digital transformation, and high-tech manufacturing. This year’s delegation visits from Germany, organized by the Delegation of German Industry and Commerce in Vietnam (AHK Vietnam), showcased German expertise in green transitions. Key focus areas include photovoltaic solutions in industrial parks, waste management, recycling, agriculture, industrial goods, and wine production—sectors well-aligned with Vietnam’s ambitions for a greener economy. Additionally, vocational training based on German standards equips Vietnam’s workforce with critical skills for future economic demands.
The AHK World Business Outlook Fall 2024 also reveals weak demand and economic policy uncertainties as major concerns for businesses. Navigating Vietnam’s regulatory environment can be complex due to policy transparency issues and administrative hurdles. Economic policy fluctuations also hinder long-term planning, while ongoing global supply chain disruptions demand adaptive and resilient solutions.
To support German companies, AHK Vietnam provides regular updates and insights into Vietnam’s regulatory and economic landscape via digital platforms. Our industry-specific market research helps businesses identify growth opportunities and untapped potential. Furthermore, the strong German business community, including members of the German Business Association (GBA), fosters networking and knowledge exchange, helping companies navigate demand fluctuations and operational challenges more effectively.