Vietnam's economy demonstrated strong performance and remarkable resilience in 2024, achieving an impressive GDP growth rate of 7.09%, surpassing the government’s target of 7%. This growth was driven by record trade flows and foreign direct investments, despite the severe impact of Typhoon Yagi.
Foreign investments:
According to the Ministry of Planning and Investment (MPI), Vietnam attracted investments from 114 countries and territories in 2024, with total registered capital slightly declining to US$38.23 billion. However, FDI disbursement reached a record high of US$25.35 billion, a 9.4% increase from 2023. Among the total registered capital in 2024 (including newly registered, additional registered capital, capital contributions and share purchases), Singapore topped the list with nearly US$10.21 billion (26% of total FDI, up 50% from 2023), followed by Korea with US$7 billion (18%, up 60%), China with US$4.73 billion (12.4%), Hong Kong with US$4.3 billion (11.4%), and Japan with US$3.5 billion (9.2%). The United States ranked 12th, with an investment of US$287 million, a 54% decrease from 2023, contributing only 0.8% of total registered FDI in 2024.
Across the 18 economic sectors attracting foreign investment in 2024, the processing and manufacturing sector received the largest share of foreign investment, US$25.28 billion (66%), followed by real estate with US$6.31 billion (16.5%, up 18.8% from 2023). The power sector, including power generation, transmission, and related services, received US$1.42 billion, less than 4% of the total. Of the 56 provinces and cities receiving foreign investments, Bắc Ninh led with nearly US$5.12 billion (13.4% of total invested capital), followed by Hải Phòng with US$4.94 billion (12.9%) and Hồ Chí Minh City with US$3.04 billion (8%).
Trade:
In 2024, according to Vietnam General Statistics Office (GSO), Vietnam’s total two-way trade of goods reached a record US$786.29 billion, up 15.4% year-on-year, with a trade surplus of US$24.77 billion. Exports grew 14.3% to US$405.53 billion, while imports rose 16.7% to US$380.76 billion. Electronics remain the largest export category, generating US$126.5 billion (31.1% of total exports), followed by machinery and tools (US$52 billion), apparel (US$37 billion), footwear (US$23 billion), furniture (US$16 billion), and vehicles and parts (US$15 billion). However, electronics exports were heavily reliant on imports of electronic parts valued at US$107 billion and tools valued at US$48.9 billion, indicating limited value creation in Vietnam.
The United States remained Vietnam's largest export market in 2024, with US$119.6 billion in exports, while Vietnam’s imports from China totaled US$144.3 billion, making it one of China’s largest export markets, according to data released by Vietnam. Vietnam recorded a trade surplus of USD 104.6 billion with the U.S., up 25.6% from 2023, and a trade deficit of US$ 83.7 billion with China, up 69.5%. However, data from both the U.S. and China show even higher figures. According to the U.S. Census Bureau, U.S. imports from Vietnam totaled US$124.8 billion in the first 11 months of 2024, leading to a U.S. trade deficit of US$113.1 billion with Vietnam. If December data is included later, the U.S. trade deficit with Vietnam could set a new record, surpassing the 2022 high of US$116.1 billion. According to data from China’s customs administration, China’s exports to Vietnam grew by 18% to a record US$163 billion, surpassing exports to Japan (US$152 billion). The surge is attributed to increased exports of components from China to Vietnam, where they are assembled and re-exported, with eight of the top ten products showing high growth being electronic components.
While Vietnam experienced a strong export recovery in 2024, several challenges remain, including risks associated with U.S. tariff measures. The foreign-invested sector accounted for 71.7% of total exports in 2024 (US$290.94 billion, up 12.3% from 2023) and generated the entire trade surplus, while domestic firms faced a growing trade deficit. Exports are highly concentrated in four key markets—Northeast Asia, the U.S., ASEAN, and the EU—which together account for nearly 80% of total export value. Additionally, export value addition remains low, with heavy reliance on imported raw materials, and key agricultural exports are mostly raw or minimally processed, limiting their global competitiveness.
On its part, Vietnam is actively strengthening its core competitiveness through various measures including implementing significant government reforms to improve efficiency and attract high-quality investment, aiming for 8% GDP growth in 2025 and double-digit growth in the years ahead.
