The year 2024 brought with it unpredictable global economic and political developments alongside significant domestic challenges.

Among these, Super Typhoon Yagi caused extensive damage to Vietnam's economy, with lasting repercussions for northern provinces. Despite these setbacks, the country demonstrated resilience, with consistent economic recovery and growth throughout the year.

Vietnam’s economy grew steadily, month by month and quarter by quarter, with an estimated annual growth rate of over 7%. All 15 key economic targets set by the National Assembly are projected to be achieved or surpassed.

This strong performance provides a solid foundation for 2025 - a year anticipated to be one of acceleration, breakthroughs, and preparation for a new era of sustainable prosperity.

1. FDI reaches historic levels, positioning Vietnam as a tech hub

Foreign direct investment (FDI) into Vietnam is estimated to have reached $40 billion by the end of 2024, placing the country among the top 15 developing nations in terms of FDI attraction.

Prominent among the year’s investments were groundbreaking commitments in technology. Nvidia, the world’s leading chip manufacturer, announced the establishment of its third global AI research center in Vietnam, following similar facilities in the U.S. and Taiwan. Nvidia’s CEO Jensen Huang returned to Vietnam in December to solidify this strategic decision.

Google selected Vietnam as a key location for its expansion plans, while SpaceX, owned by Elon Musk, disclosed intentions to invest $1.5 billion in the country. Simultaneously, the Trump Organization revealed a $1.5 billion investment plan in Hung Yen Province.

In addition to these, Apple supplier Foxconn pledged $80 million for chip production in Bac Giang, and Meta announced plans to scale up the production of virtual reality devices.

Vietnam is no longer just a hub for assembly and manufacturing; it is becoming a vital component of the global technology ecosystem.

2. Record-breaking success in agriculture

The agricultural sector was a standout performer, achieving historic export revenues of $62.4 billion, a 18.5% increase compared to 2023. Key highlights include:

Coffee: Exports reached $5.5 billion, despite a decline in production. For the first time, Vietnam’s Robusta coffee became the most expensive in the world. The domestic price of raw coffee beans hit a record high of 134,000 VND/kg, bringing significant financial gains to farmers.

Rice: With 9.01 million tons exported, earning nearly $5.8 billion, Vietnam set new records for both volume and value. The country also became the first in the world to produce high-quality, low-emission rice at a large scale, covering one million hectares.

Cashews: Export earnings reached $4.3 billion, solidifying Vietnam’s position as the world’s largest cashew exporter for nearly two decades.

Fruits and Vegetables: Exports soared to $7.2 billion, a remarkable increase from $5.6 billion in 2023. Durian alone accounted for $3.5 billion, the highest figure in history.

3. VinFast leads Vietnam’s auto market

VinFast, Vietnam’s homegrown automotive brand, achieved a historic milestone by becoming the country’s best-selling automobile brand in 2024. By October, the company had delivered over 51,000 electric vehicles, firmly establishing itself as the market leader.

This success underscores Vietnam’s potential in green transportation and reflects a broader shift among consumers toward eco-friendly mobility.

4. Energy reforms and infrastructure advancements

The National Assembly approved revisions to the Electricity Law in 2024, reviving plans for the Ninh Thuan nuclear power project. This marked a significant step forward in Vietnam’s commitment to energy security.

Additionally, the completion of the 500 kV transmission line from Quang Binh to Hung Yen enhanced the country’s energy infrastructure, ensuring greater stability and distribution capabilities.

5. A tourism boom boosts the economy

Vietnam welcomed 17.5 million international visitors in 2024, a 38.9% increase from the previous year, while domestic tourism reached 110 million trips. Total revenue from tourism climbed to 840 trillion VND ($34.4 billion), driven by increased demand and improved visa policies.

The majority of international tourists came from Asia, with visitors from China, South Korea, Taiwan, and Japan accounting for nearly 60% of the total.

6. Financial reforms enhance stability

Key financial regulations introduced in 2024 included mandatory biometric authentication for electronic transactions over 10 million VND ($425). This measure significantly reduced online fraud, with reported cases dropping by 50%.

Revised credit institution laws imposed stricter ownership limits, reducing the influence of major shareholders and enhancing transparency.

7. Banking sector restructures troubled institutions

OceanBank and CBBank, two of Vietnam’s “zero-dong” banks, were successfully transferred to MB and Vietcombank, respectively. This move, approved by the government, aims to restore these banks to financial health while safeguarding customer interests.

8. Gold market volatility and stabilization efforts

Global gold prices surged in 2024, with SJC gold reaching a record 92 million VND ($3,750) per tael. The State Bank of Vietnam intervened by resuming gold bar auctions for the first time in 11 years, successfully narrowing the domestic-to-global price gap.

9. Controversial land auctions spark reforms

Several land auctions in 2024 were marked by extreme bids, such as one in Hanoi’s Hoai Duc District where prices reached 30 billion VND ($1.2 million) per square meter. Investigations led to the prosecution of individuals involved in market manipulation.

10. Foundations for an ambitious 2025

As 2024 concludes, Vietnam is positioned to accelerate growth in 2025. The successes of the past year - in agriculture, technology, tourism, and energy - have created a robust foundation for the country to achieve sustainable development and global competitiveness in the years ahead.

VNN