Vietnamese Economy Rapidly Recovers Due to Decisive Actions
Vietnam: Vietnam's economy rebounded rapidly in the first half of 2024 following a challenging period at the end of 2022 and early 2023, attributed to the government’s decisive actions, according to Paulo Medas, head of the International Monetary Fund (IMF)’s 2024 Article IV Mission to Vietnam.
The IMF team, led by Paulo Medas, conducted the 2024 Article IV consultation with Vietnam from June 12-26. Vietnam’s economy grew by 6.4 percent year-on-year in the first half, driven by government and State Bank of Vietnam (SBV) measures such as reducing interest rates, increasing public investment, and raising wages. Inflation rose to around 4.3 percent year-on-year in June, nearing the SBV target of 4.5 percent. Despite this growth, the IMF expert noted that Vietnam’s productivity growth remains lower compared to other countries globally. He emphasized the need for ongoing efforts to enhance the business environment, upgrade infrastructure, particularly in energy and renewables, accelerate climate-related reforms, and develop robust capital markets.
Source: IMF