Vietnam’s 10 economic highlights in 2024

The Vietnam News Agency’s Economic News Department has selected the top 10 outstanding events that shaped the country's economic landscape in 2024.

1. GDP growth exceeds 7%

Amidst the severe impact of Super Typhoon Yagi and global economic uncertainties, Vietnam's economy has made significant efforts to overcome challenges, with GDP growth forecast to reach over 7%, surpassing the target set by the National Assembly. The macroeconomy remains stable, with inflation controlled below 4%. Total trade turnover is approaching a record 800 billion USD. The national brand value hits 507 billion USD, ranking 32nd out of 193 countries. Foreign direct investment (FDI) attraction surpasses 31 billion USD, placing Vietnam among the top 15 developing countries with the highest FDI inflows globally. The number of international visitors to Vietnam increases by approximately 40% year-on-year.

2. Plans to restructure, rearrange and merge economic ministries, agencies devised

Implementing the direction of the Central Steering Committee for reviewing the implementation of Resolution 18-NQ/TW of the 12th Party Central Committee, which seeks to streamline the political system for greater efficiency and effectiveness, since the beginning of December, agencies of the Party, National Assembly, Government, and Vietnam Fatherland Front, and socio-political organisations have urgently built plans to submit to the Party Central Committee in the first quarter of 2025.

Accordingly, in the economic sector, the Ministry of Planning and Investment will be merged with the Ministry of Finance; the Ministry of Transport with the Ministry of Construction; and the Ministry of Natural Resources and Environment with the Ministry of Agriculture and Rural Development. Meanwhile, the Commission for Management of State Capital at Enterprises (CMSC) and the National Financial Supervisory Commission will be terminated, with their functions and tasks to be transferred to relevant ministries and agencies. The Vietnam Social Security will be part of the Ministry of Finance and Development Investment or the Ministry of Economic Development.

3. Approval of policies to invest in and restart two major projects

At its 8th session, the 15th National Assembly approved the investment policy for the North-South High-Speed Railway Project, with a total investment of over 1.71 quadrillion VND (66.7 billion USD); and the resumption of the Ninh Thuan Nuclear Power Project. The high-speed railway project is expected to be funded by public investment, meeting the growing demand for transport and contributing to the sustainable restructuring of the transport market along the North-South corridor. Meanwhile, the Ninh Thuan Nuclear Power Project is expected to diversify the electricity supply, ensure energy security, and contribute to environmental protection.

4. Approval of revised Land Law

On January 18 morning, at its extraordinary session, the 15th National Assembly passed the Land Law (amended). Together with the revised Housing Law and the revised Real Estate Business Law, the revised Land Law, taking effect five months earlier than the initially set deadline, is expected to meet the requirement of completing and synchronising policies and laws to ensure a stable and sustainable real estate market, and to manage and utilise land resources effectively. In 2024, the National Assembly have also passed several important laws to remove institutional bottlenecks and create a favourable legal framework for socio-economic development.

5. Typhoon Yagi causes severe damage

Typhoon Yagi, the most powerful typhoon in the past 30 years entering the East Sea and the strongest hitting Vietnam’s mainland in 70 years, has caused devastating consequences. It left 323 people dead, 22 missing, and 1,978 injured; and resulted in material damage exceeding 81.7 trillion VND (3.2 billion USD). Notably, Lang Nu village in Phuc Khanh commune, Bao Yen district, Lao Cai province was completely flattened by flash floods. The entire political system took actions to respond to and overcome the aftermath of the typhoon, stabilise people's lives, and restore production and business activities.

In addition to evaluating and drawing important lessons from the response and recovery efforts following such a big disaster as this typhoon, the Government and relevant ministries and sectors have also outlined key tasks and solutions to be ready for future natural disasters, including typhoons, floods, landslides, and other calamities.

6. Rapid completion of 500kV circuit-3 power transmission line project

On August 29, the 500kV circuit-3 transmission line project from Quang Trach district in the central province of Quang Binh to Pho Noi in the northern province of Hung Yen was inaugurated after just over six months of implementation, setting records for the fastest investment procedures and shortest construction time. The project, designed and carried out by Vietnamese engineers, holds significant importance in various political and socio-economic aspects, as it helps ensure national energy security, and overcome localised power shortages in the North, and highlights the national spirit and unity of the political system. It also serves as a valuable lesson for the implementation of major national projects.

7. Taking special measures to stabilise gold market

In response to the complex and unpredictable developments in the gold market, and following the directions from the Government and the Prime Minister regarding the significant price disparity between domestic SJC gold and global gold bars, the State Bank of Vietnam (SBV) has implemented special measures to stabilise the gold market. On April 22, the SBV resumed the SJC gold bar bidding process after an 11-year hiatus. After nine bidding sessions that helped increase the supply to the market, the central bank applied alternative stabilisation measures, opting for the direct sale of SJC gold through four state-owned commercial banks and the Saigon Jewelry Company (SJC).

Additionally, it has worked closely with relevant ministries and agencies to strengthen the implementation of comprehensive state management measures on gold trading activities, including strictly handling legal violations related to gold business operations.

8. Addressing abnormalities in land use rights auctions

In 2024, there have been abnormal developments in land use rights auctions. A notable example is that in early August, several land auctions in districts on the outskirts of Hanoi attracted thousands of registrations, with the winning bids reaching over 100 million VND (4,000 USD) per square metre. In some cases, the winning bid was 18 times more than the starting price, far exceeding the actual value of land plots in the same area. These developments show signs of price inflation and manipulation for profit, which could undermine the healthy development of the real estate market.

Prime Minister Pham Minh Chinh has directed local authorities, relevant ministries, and agencies to rectify the organisation of land use rights auctions, strictly handle cases of legal violations, and prevent the manipulation of land auctions for profit.

9. Launch of 5G network, promotion of national digital transformation

On October 15, the Viettel Military Industry and Telecoms Group officially launched its 5G network, marking the official presence of this service in Vietnam. As one of the pillars of the fourth Industrial Revolution, digital infrastructure, including the 5G network, has a profound impact on socio-economic development by driving innovation and increasing productivity in various sectors.

In 2024, Vietnam has successfully implemented 49 out of 76 essential public services on the National Public Service Portal, activated over 57.9 million VNeID accounts, and established 32.1 million electronic health records for citizens.

10. VNDirect and PVOIL hit by ransomware attacks

On March 25, VNDirect Securities Joint Stock Company was targeted by a ransomware attack, which encrypted its data. Shortly after, on April 2, the Vietnam Oil Corporation (PVOIL) suffered a similar attack. These incidents caused significant disruptions to the companies' IT systems, resulting in substantial losses.

According to the Authority of Information Security under the Ministry of Information and Communications, ransomware attacks have targeted various agencies, organisations, and businesses in Vietnam, particularly in sectors such as finance, banking, energy, and telecommunications. These attacks present a warning, highlighting the need for companies to raise awareness of information security and implement protective measures against cyber threats./.