Chinese media highly appreciates Vietnam's spectacular growth

Thanks to strong exports and industrial production, along with increasing foreign investment, Vietnam's economic growth rate reached a two-year high, surpassing the damage caused by Super Typhoon Yagi - Asia's strongest storm this year - to the Vietnamese economy.

The Vietnam Fruit Festival was recently held in Beijing (China), aiming to promote the export of Vietnamese agricultural products to the consumer market of 1.4 billion people. (Photo: Ho Quan)

This is the highlight of the article titled "Thanks to strong exports and industrial production, Vietnam's GDP growth unexpectedly accelerated to 7.4% in the third quarter" published by "Wall Street Observer" - China's leading provider of financial and business information and reposted by a series of online newspapers in recent days.

The article cited data released by the General Statistics Office on October 6, stating that Vietnam's third-quarter gross domestic product (GDP) is estimated to have grown by 7.4% year-on-year, the highest growth rate in the past two years, higher than the market forecast of 6.1% and the second quarter of 2024 of 7.09%. In addition, the CPI in September increased by 2.63% year-on-year, lower than the market forecast of 2.7%; total retail sales increased by 7.6% year-on-year.

Vietnam's third-quarter gross domestic product (GDP) is estimated to have grown by 7.4% year-on-year, the highest growth rate in the past two years, higher than the market forecast of 6.1% and the second-quarter forecast of 7.09%.

The investment and industrial sectors, especially manufacturing, were the main drivers of the impressive growth in the third quarter of this year. Data showed that export turnover and industrial production value increased by 10.7% and 10.8% respectively in September, while foreign direct investment reached US$17.3 billion in the first nine months of the year, up 8.9% over the same period last year.

According to the article, last September, super typhoon Yagi - the strongest storm in Asia - swept through northern Vietnam, killing more than 300 people and disrupting power supply, agricultural production and factories, causing estimated economic losses of up to 3.3 billion USD, expected to reduce GDP growth rate by 0.15 percentage points for the whole year, with effects lasting until the fourth quarter of this year.

Due to the impact of the storm's aftermath, many indicators such as the Purchasing Managers' Index (PMI) fell sharply in September, trade-dependent factory activity fell for the first time in 5 months..., but overall in all 3 quarters, the Vietnamese economy was less affected, the export, industrial and foreign investment sectors all accelerated unexpectedly.

The article cited the assessment of Mitsubishi UFJ Financial Group that, after the storm, Typhoon Yagi, the State Bank of Vietnam may apply easing policies, supporting the economy by lowering interbank interest rates.

This year, Vietnam has attracted a steady increase in foreign investment, making the economy show strong resilience. Vietnam is a regional manufacturing hub for multinational companies such as Samsung Electronics, Apple suppliers such as Foxconn and Luxshare Precision.

"Watching Wall Street" (China)

Vietnam has attracted a steady inflow of foreign investment this year, helping the economy show strong resilience. Vietnam is a regional manufacturing hub for multinationals such as Samsung Electronics and Apple suppliers Foxconn and Luxshare Precision. Vietnamese leaders have pledged to cut logistics costs and improve infrastructure to attract more investment. The Vietnamese government aims to achieve GDP growth of 6% to 6.5% this year, up from around 5% last year; while trying to keep inflation below 4.5%.

The article cited the International Monetary Fund (IMF) forecast that Vietnam's economy is expected to grow 6.1% this year, slightly higher than its previous estimate, thanks to "continued strong external demand, stable and solid foreign direct investment and supportive government policies."

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