Vietnam's economy expanded by over six percent in the first half of 2024, according to government data released on Saturday, with analysts suggesting that additional reforms are necessary to stimulate further growth.

The General Statistics Office (GSO) reported that the global manufacturing hub experienced a 6.4% growth from January to June, up from 3.7 percent during the same period in 2023.

The GSO attributed the upswing to "various measures" aimed at enhancing supply chains, stabilizing the foreign exchange market, and boosting public investment. According to the latest figures, industrial production rose by 7.5 percent, and foreign investment grew by 8.2 percent compared to the corresponding period last year.

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VPBank Securities analyst Duong Thien Chi emphasized in an interview with AFP that in order to sustain and enhance growth, the government should prioritize key sectors such as manufacturing and processing, logistics, and hospitality.

Duong highlighted the importance of policymakers considering "unmeasurable variables," such as the impact of interest rate reductions by the US Federal Reserve.

$190 billion from exports to US

In the first half of 2024, the United States emerged as Vietnam's largest export market. During this period, Vietnam generated $190 billion from exports, marking a 14.5% increase compared to the previous year.

Despite these gains, an analyst from the International Monetary Fund remarked that Vietnam "requires a new wave of reforms" after visiting the country in late June.

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"Increasing productivity, further investing in human and physical capital, and incentivizing private investment in renewable energy is key," said the IMF's Paulo Medas.

Putin in Vietnam 

On a related, Vladimir Putin arrived in Vietnam on June 20 to meet with its leaders on the final stop of his two-nation Asian tour, following the signing of a defense pact with the Democratic People's Republic of Korea's leader Kim Jong Un.

According to Russian news agency TASS, Putin aimed to discuss collaboration in "trade and economic, scientific, technological, and humanitarian areas" and exchange views on key international and regional issues.

In an opinion piece published in Vietnam’s Communist Party newspaper Nhan Dan to coincide with his visit, Putin highlighted progress in payments, energy, and trade between the countries.