According to the February and the first two months’ socio-economic situation report by the General Statistics Office, the economic landscape shows several bright spots, including optimistic signals from agricultural production and investment stability, step-by-step assurance in industrial progress, and deep concern for social security from the political system at all levels, from central to local governments.
Optimistic Signals from the Economic Picture in January 2024
Statistical data reveal focused agricultural production on sowing, and caring for rice and seasonal vegetables during the winter-spring season across the country. By mid-February, the country sowed 2,557.4 thousand hectares of winter-spring rice, equaling 94.8% of the same period in 2023. Pig and poultry farming developed well; however, buffalo and cattle farming showed a declining trend. As of the end of February 2024, the total number of pigs in the country increased by 4.8% compared to the same period in 2023; the total number of cattle decreased by 0.1%; buffaloes decreased by 2.6%; poultry increased by 2.1%. By February 23, 2024, the country no longer had outbreaks of blue ear disease; foot-and-mouth disease remained in Quang Ngai; avian influenza remained in Ninh Binh, Khanh Hoa, Long An; nodular dermatitis remained in Ha Tinh, Quang Ngai, and African swine fever remained in 15 localities not yet past 21 days.
Notably, the aquaculture production in February 2024 was estimated at 621 thousand tons, up 0.2% compared to the same period in 2023. In the first two months of 2024, aquaculture production was estimated at 1,211.1 thousand tons, up 1.6% compared to the same period in 2023.
According to statistical data, the Industrial Production Index (IIP) for February 2024 was estimated to decrease by 18% compared to the previous month and decrease by 6.8% compared to the same period in 2023. In the first two months of 2024, the IIP was estimated to increase by 5.7% compared to the same period in 2023. The industrial production index for the first two months of 2024 compared to the same period in 2023 increased in 56 localities and decreased in 7 localities nationwide. The number of workers in industrial enterprises as of February 1, 2024, increased by 0.3% compared to the previous month and decreased by 0.5% compared to the same period in 2023.
The report by the General Statistics Office also showed that in February of this year, the country had nearly 8.6 thousand newly established businesses, down 36.5% compared to the previous month and down 2.8% compared to the same period in 2023; more than 5.3 thousand businesses resumed operations, down 61.3% compared to the previous month and up 36% compared to the same period in 2023; 5,146 businesses registered for temporary suspension of business with a term, down 88.3% compared to the previous month and up 35.3% compared to the same period in 2023;… In the first two months of 2024, the country had 41.1 thousand businesses registered for new establishment and resuming operations, up 8.5% compared to the same period in 2023. On average, more than 20.5 thousand businesses were newly established and resumed operations per month. The number of businesses withdrawing from the market was 63 thousand, up 22.5% compared to the same period in 2023; on average, nearly 31.5 thousand businesses withdrew from the market per month.
State budget investment capital executed in February was estimated at 26.9 trillion VND, down 13.1% compared to the same period in 2023. In the first two months of 2024, the executed state budget investment capital was estimated at 59.8 trillion VND, equal to 8.4% of the year’s plan and up 2.1% compared to the same period in 2023. The total foreign investment capital registered in Vietnam as of February 20, 2024, including newly registered capital, adjusted registered capital, and the value of capital contribution, share purchase by foreign investors, reached nearly 4.29 billion USD, up 38.6% compared to the same period in 2023. The actual foreign direct investment in Vietnam in the first two months of 2024 was estimated at 2.8 billion USD, up 9.8% compared to the same period in 2023. However, Vietnam’s investment abroad in the first two months of 2024 had 17 new projects granted investment certificates with a total capital from the Vietnamese side of 24.8 million USD, down 77.3% compared to the same period in 2023; there were 02 project capital adjustments with an adjusted capital increase of 220 thousand USD, down 96.1%. In total, Vietnam’s investment abroad (new and adjusted capital) reached 25 million USD, down 78.3% compared to the same period in 2023.
Total state budget revenue in February 2024 was estimated at 132.7 trillion VND. The cumulative total state budget revenue in the first two months of 2024 reached 399.4 trillion VND, equal to 23.5% of the year’s estimate and up 10.4% compared to the same period in 2023.
The total retail sales of goods and consumer service revenues at current prices in February 2024 were estimated at 509.7 trillion VND, down 2.3% compared to the previous month and up 8.5% compared to the same period in 2023. In the first two months of 2024, the total retail sales of goods and consumer service revenues at current prices were estimated at 1,031.5 trillion VND, up 8.1% compared to the same period in 2023.
In February 2024, the total passenger transport was estimated at 421.5 million passenger transports, up 8.7% and transported 23.7 billion passenger-kilometers, up 10.2% compared to the previous month. In the first two months of 2024, passenger transport was estimated at 809.1 million passenger transports, up 9.2% compared to the same period in 2023.
Freight transport in February 2024 was estimated at 205.5 million tons of goods transported, down 2.2% and transported 41.1 billion ton-kilometers, down 12% compared to the previous month. In the first two months of 2024, freight transport was estimated at 415.8 million tons of goods transported, up 13.9% compared to the same period in 2023.
Vietnam is attracting a large number of international tourists.
A happy signal is that, thanks to the effectiveness of favorable visa policies, tourism stimulus programs, as well as the efforts of the government and people, the number of international tourists coming to Vietnam in February 2024 reached more than 1.5 million people, up 1.3% compared to the previous month and up 64.1% compared to the same period in 2023. In the first two months of 2024, international tourists coming to our country reached more than 3 million people, up 68.7% compared to the same period in 2023.
In the festive atmosphere of welcoming the Lunar New Year of the Dragon in 2024, the living situation of the population in February this year was more positive than in January. Social security assurance work was always timely and effectively implemented by all levels and sectors during the Lunar New Year of the Dragon. According to the report on February 14, 2024, by the Ministry of Labor – Invalids and Social Affairs, the whole country supported and gifted Tet presents to 13.9 million subjects with a total budget of nearly 7.8 trillion VND. The President gifted nearly 1.5 million subjects with a total budget of 449.4 billion VND according to Decision No. 1583/QĐ-CTN dated December 26, 2023. Local governments at all levels gifted Tet presents worth about 2.7 trillion VND.
In conclusion
Vietnam’s macroeconomic performance in the first two months of 2024 has demonstrated resilience and optimism across various sectors. Despite some challenges, the agricultural output, foreign direct investment inflows, and the significant boost in international tourism reflect a robust economic foundation. Industrial production and domestic market activities have also shown positive trends, contributing to the overall economic stability. The government’s commitment to social welfare during festive seasons underlines its focus on inclusive growth. Moving forward, sustaining this momentum will require strategic investments and innovation, positioning Vietnam well for continued economic success in a complex global landscape.