Growth target feasible given positive nine-month performance

Many positive signs have been recorded in foreign trade, investment attraction, industrial production, and purchasing power during the first nine months of 2024, enhancing the confidence that this year’s GDP growth target of 7% is within reach.

Nguyen Dinh Muoi, Deputy General Director of the Vina T&T Import Export Service Trading Co. Ltd, said that so far this year, his company’s export revenue has risen by over 25% from a year earlier. Many products such as frozen durian, pomelo, and mango are currently exports to the US, Canada, Australia, Japan, and the Republic of Korea. On average, the firm ships one container of frozen durian to the US every three days.

Meanwhile, export orders placed at confectionery manufacturer Richy Group Joint Stock Company until the end of 2024 have surged, and its revenue for the whole of this year could exceed 2 trillion VND (80 million USD), said Nguyen Thi Bich Son, an executive at the company.

The General Statistics Office recently reported that in 2023, the electricity and electronics sectors contracted 2.3%, motorised vehicle production down 4.1%, leather - footwear down 1.9%, and rubber and plastics up 8.8%. However, they regained growth momentum during the first nine months of 2024, posting respective expansion of 9.1%, 13%, 11.6%, and 28.8%. Many other groups of commodities like furniture, coke, refined petroleum products, and processed food also enjoyed growth ranging between 7.8% and 25%.

During January - September, more than 7.64 billion USD in foreign investment was added to 1,027 existing projects, respectively increasing 48.1% and 7.3% year on year. The foreign capital disbursement reached 17.34 billion USD, up 8.9%.

Bruno Jaspaert, Chairman of the European Chamber of Commerce (EuroCham) in Vietnam, said in 2024, Vietnam remains attractive to foreign investors as foreign investment keeps flowing strongly into the country. The business confidence index of European enterprises here saw a notable increase, from 45.1 in the third quarter last year to 52 in Q3 of 2024.

In addition, industrial production has sustained quarter-over-quarter growth, resulting in a year-on-year increase of 8.6% in the nine-month industrial production index. Total foreign trade approximated 579 billion USD, up 16.3% year on year, with exports rising 15.4%.

Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Union of Business Association, held that the world’s economic situation gradually stabilised during the nine months, with global trade in goods improved, inflationary pressure eased, financial conditions further loosened, and labour supply bettered.

A survey of enterprises shows that both the number and value of their export orders have increased, Hoa continued.

Economic experts recommended that despite positive results, the country should steer clear of subjectivity in the face of stringent regulations and standards from large export markets, unpredictable changes in the global market that may affect supply chains, and the strong competition from foreign rivals such as India and Thailand right in the domestic market.

They also pointed out the need to constantly improving the investment climate and creating growth momentum.

Some enterprises proposed the Government, ministries, and sectors maintain uninterrupted trade flows, build corridors for essential goods and services, boost infrastructure development, and digitalise public administration and logistics to keep up with e-commerce development.