Vietnam Q1 growth hits five-year high on strong exports

HANOI, Vietnam — Vietnam's economy grew by 5.66% on-year in the first quarter, according to official data published Friday, boosted by strong exports.

It is the communist country's strongest Q1 growth since 2019, but still well off Standard Chartered Bank's forecast of 6.1%.

"The country's socioeconomic situation in the first quarter of 2024 achieved positive result despite many uncertainties in the world economy," the General Statistics Office (GSO) said in a statement.

The industrial and construction sector expanded by 6.28%, while the service sector grew 6.12% compared with the same period in the previous year.

A major global manufacturing hub, Vietnam also earned $93 billion from goods exports in the first quarter, up 17% year-on-year. The United States was its largest export market during this period.

Vietnam's trade surplus reached $8.08 billion in Q1, up from $4.93 billion in the same period last year, the GSO said.

Authorities are targeting 6-6.5% growth in 2024, up on the 5.05% seen last year, while the Asian Development Bank forecast the year-end figure could reach 6%.