Vietnam GDP 2024 growth jumps to 6.9% in Q2

Richard Burrage
Jul 02, 2024

Vietnam GDP 2024 growth jumps to 6.9% in Q2. In the first half of 2024, Vietnam’s economy displayed a stark contrast between impressive headline GDP growth and underlying sectoral volatility. Vietnam achieved a 6.9% year-on-year GDP growth rate in the second quarter, spurred by strong exports and a manufacturing surge. Yet, domestic consumption lagged, presenting a mixed economic picture.

Volatility for business and manufacturing in Vietnam

The manufacturing sector stood out as a significant growth engine for Vietnam GDP 2024, with the Vietnam Manufacturing Purchasing Managers’ Index (PMI) reaching near-record highs due to a surge in new orders. Foreign direct investment (FDI) maintained a healthy pace, and a substantial trade surplus further brightened the economic outlook.

However, underlying concerns remain. Ongoing volatility is expected until at least 2026, exacerbated by delays in government approvals that are unlikely to be resolved before the next national assembly election, expected in May 2026. This bureaucratic stagnation impedes infrastructure spending, a crucial growth driver. Consequently, Cimigo‘s Vietnam GDP 2024 growth forecast remains a cautious 5.7%.

Vietnam Q2 2024 Economic performance vs Q2 2023

Vietnam CEO business confidence

While CEO sentiment in the CEO Pulse survey, measured by the Cimigo and the Business Executive Network, dipped in June, most CEOs remain optimistic about Vietnam’s long-term prospects.  Few CEOs expect conditions to worsen, but those expecting improvements have declined significantly.

Cimigo Vietnam CEO Business Confidence 2024

CEOs remain optimistic about Vietnam’s long-term prospects. Approximately half of the surveyed CEOs expect improvements in their businesses and the Vietnamese economy, though fewer expect the same for the global economy.

Cimigo Vietnam CEO Economic Outlook 2024

Download the report here

Vietnam manufacturing saw new order growth surge to a near-record high

The sector experienced the sharpest increase in new business since March 2011.

Vietnam Purchasing Managers Index Trend 2024

The Vietnamese manufacturing sector burst into life midway through the year, shrugging off the relatively modest growth in recent months thanks to a rapid increase in new orders. The expansion’s strength in new work highlighted staff shortages at some firms and resulted in an accumulation of outstanding business. In response, firms took on additional staff at a solid pace.  The Vietnam Manufacturers Purchasing Managers Index is conducted by Cimigo and compiled by S&P Global.

Download the report here

Vietnam consumer retail sales are muted

Muted consumer demand presents a challenge. Retail sales growth remains sluggish, lagging other economic indicators. This can be attributed to a shift in consumer behaviour towards thrift. Consumers prioritise value and delay high-ticket purchases, impacting discretionary spending and essential goods.

Retail expenditure growth, which contributes 55% of the economy, remains sluggish. Sales of goods and services increased by only 2.7% by YTD June 2024 over the same period last year. 

Sales of retail goods increased by only 0.9% by YTD June 2024. This is far below inflation, volumes have contracted. 

Sales of retail services increased by 9.5% by YTD June 2024, buoyed by a massive increase in the number of inbound tourists to 8,832,271 as of YTD June 2024 (a 58% increase compared with 5,574,969 YTD June 2023). 

Cimigo Vietnam on Retail Sales June YTD 2024

Download the report here

The recent uptick in manufacturing and exports is expected to gradually translate into improved consumer spending in the latter half of 2024. However, Cimigo expects continued volatility in retail sales. Please see the report here for further analysis.

End.

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Cimigo conducted a large, nationally representative demand forecasting study in Vietnam for us, including a discreet choice component, to assess demand for potential new male contraceptives in development to support funding decisions by The Bill & Melinda Gates Foundation. The research was additionally complex by linking interviews with men and separate interviews with their female partners. The Cimigo team was were professional, knowledgeable and adaptive through the process of understanding our needs and collaborating to find solutions that would work, resulting in a very successful study.

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Cimigo is the research agency that I appreciate for their expertise and customer service. Cimigo understand well the business context for each of project hence they can design the research to best fit with the objectives. The optimization on methodologies, sample size and questionnaire bring the value to the projects I have worked with them. Cimigo can go beyond data and give me valuable insights for each of research projects based on their knowledge and experience with the industry. All of these support me well to navigate the brand strategy in short term and long term.

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We partnered with Cimigo on assessing TET campaign launch focusing on improving booking through our platform. Cimigo, provided its customized campaign evaluation technique based on Cimigo Online Communities that fully meets our requirement in terms of type of respondents and expected timelines. The report provided insightful findings with benchmarks to identify the next course of action for launching the campaign. We will recommend Cimigo team and its Online communities for its quality reporting and scale of coverage.

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Cido have worked with Cimigo in Vietnam for more than 10 years. All our projects, both qualitative and quantitative, have been delivered in a timely manner with a high standard of quality throughout. Cimigo’s client service team has provided great support over the years which has ensured smooth project execution and helped us to deliver work on time and exceed our client’s expectations.

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I have partnered with Cimigo over the past 15 years. Most recently Cimigo engaged us to collaborate on an unusually tough new product development project, which was akin to selling ice to Eskimos. Cimigo bought alive the consumer, her shopping journey, her cooking rituals and potential brand promises. Cimigo inspired our creative team to build alternate brand propositions and accompanying package designs. Cimigo then went back to consumers to evaluate, iterate and optimise these in focus groups. The Doodle team were able to observe this process and subtly adjust the expression of the brand between focus groups. The result of this great collaboration was a winning brand proposition and packaging design that hit consumer needs head on whilst appealing to their hearts.

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We have worked together with Cimigo many times. The findings from Cimigo are factual, accurate & reliable. They deliver value from the voice of our customer so we can easily determine the next step. Working with Cimigo feels like not only building a partnership but a sense of family. Very amazing to work with Cimigo, they always go beyond our expectations.

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Cimigo digs deep to understand the key issues we need to address. Then, they quickly customize a highly suitable research approach to provide us the insights we need to achieve our breakthrough business targets. From tough questions to aha answers in just a few easy conversations!

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As a creative director I have used the services of Cimigo for the past 15 years when developing communications, so I know their style, innovations and resources well. Most recently we tested copy for print, out of home and digital communications to put an Australian colloquialism into a Vietnamese context. A job and budget so small I felt it was highly likely to fall through the cracks. I was astounded at their incredible response. From their advice and style of how we should present the stimulus material, to their cross-reference manoeuvres used in the testing. Their over-delivering response, was to an embarrassing level. We walked away with a clear winner and could present back to our client with confidence and clarity. Cimigo made us look great. Plus they even threw in a few extra insights on the awareness and perception of the product in Vietnam.

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Cimigo have built and managed both our employee and customer experience programme since 2012. We have a complex suite of services with in-patient, out-patient, surgical, diagnostic, consultative and facilities to account for, all amongst patients who are naturally sensitive regarding their privacy and experience. Yet Cimigo have designed a system to measure customer experience across multiple languages and cultures and direct us in improving this experience. Our net promoter score (NPS) has grown as a direct result of changes implemented based on this direction and continuously listening to patient feedback. The NPS growth correlates directly to new patient numbers and improved profitability, as happier customers drives our business growth.

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Cimigo designed a customer experience programme for Coats that reached into Vietnamese, Chinese and Korean customers across various levels of seniority. Cimigo instilled the importance of the voice of the customer within our executive committee. This led to fundamental changes in our structure, services and speed to market. Significant investments were made behind these improvement programmes, for example in reducing delivery times and in managing specialised custom orders, which in turn have led to improved revenue streams and higher margin sales.

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Cimigo - The best “Glocal” market research firm in Vietnam with whom we have developed a great partnership since many years. While the quality of research and findings are of top standard, the added advantage being the local insights that Richard and his team are able to provide in helping us make important decisions.

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I respect Cimigo not only because of their dedication, meticulousness, and high-quality services but also how much they care about the local community here. I proposed the idea of doing a survey with the digital young generation on the topic of social impact and leadership. I wanted to identify, shape, and develop our content so that could really speak to the heart of the problems and empower young Vietnamese to take action on social impact in Vietnam. The Cimigo team agreed pro-bono to help without hesitation. The research findings are truly helpful in providing us a deeper understanding of our targeted audiences, what they need and are concerned about in life. The results show us how we can help them to achieve their goals and dreams. It is no longer a shot in the dark!

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Cimigo consistently carries out researches with international standards and consistently bring about truly mind opening local insights.

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Cimigo not only delivered an exceptional piece of qualitative research for us, but provided hugely valuable direction when it came to product development and market positioning which we have since implemented. We can’t wait to work with the team again.

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Pharmacity started a Brand Health Check with Cimigo in 2020 and we were immediately impressed with their great consultancy and supportive spirit. The study had interesting analysis and insights which helped us efficiently shape the marketing plan and direction moving forward. We are now working with Cimigo on a tracking basis to continuously monitor and foster our brand performance.

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When we were looking to develop one of the worlds the leading economic indicator in Vietnam, the Purchasing Managers’ Index™ (PMI®) Cimigo showed an immediate understanding of our needs and showed their understanding of the Vietnamese market. IHS Markit has now been working with Cimigo since 2013. Every month Cimigo continues to provide high quality data, a representative panel, on time data and great customer service. We look forward to many more years of working together.

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I have worked with CIMIGO on educational research for over 4 months. This is extremely impressive to me by the way CIMIGO approaches, cooperating and supporting me during the research launched. Specifically, the design for both qualitative and quantitative research are practical and logical with accurate questionnaires and appropriate interviews methodology for different respondents. Moreover, the outcomes of this research helps us to recognize our opportunities in the current English Language Training Market and understand profoundly our customer needs, behaviours and expectations when sending their children to us.

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Cimigo is and will be our strategic research agency. We are happy with your work and the way our projects are handled. You walked the extra mile and we are grateful for that.

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Just to say a huge thank you for all of the film footage. We are absolutely delighted with it all. The Vox Pops are really interesting and have turned out very well – those ladies were great at talking spontaneously. Cimigo did a great job. Thank you for your patience and perseverance with getting this off the ground.

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We partnered up with the Cimigo team on what was a particularly challenging project – we were faced with numerous timeline delays and logistical concerns – yet Cimigo were incredibly accommodating through their patience, flexibility and commitment. Not only were Cimigo supportive during the set up of our project, but we were really impressed by the outputs delivered – Cimigo were insightful, rich and very comprehensive. Cimigo were brilliant partners to work with and we look forward to working with them again.

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Over the last 5 years I have worked with Cimigo on a wide array of projects, ranging from market segmentation to product testing. At all times, I found Cimigo to be swift in response and providing high quality insights and business recommendations applicable to our business. Furthermore, I am satisfied with Cimigo fieldwork quality despite the crunched timeline that we had in some projects. Overall, I highly recommend Cimigo for their professionalism.

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It was a pleasure working with Cimigo. Their expertise in consumer and market research was a significant benefit as they assisted our organization in understanding our market position in more detail and validating our hypothesis in go-to-market strategy. We were more than happy with the findings and would definitely recommend Cimigo.

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Cimigo is not the type of agency that "fill in the template", but it's customized as per the needs and expectations of Client. Cimigo makes research interesting by applying new approaches to address the business issue, for example, it's known by default that product test is CLT, but at Cimigo, we did group debate for deeper understandings and insights and that resulted as a winning product which is selling well in the market. Last but not least, Cimigo makes me understand that research is a journey, not just a project."
Cimigo is not the type of agency that "fill in the template", but it's customized as per the needs and expectations of Client. Cimigo makes research interesting by applying new approaches to address the business issue, for example, it's known by default that product test is CLT, but at Cimigo, we did group debate for deeper understandings and insights and that resulted as a winning product which is selling well in the market. Last but not least, Cimigo makes me understand that research is a journey, not just a project."

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We have worked with Cimigo over 2 projects in Vietnam. Cimigo has proven to be reliable being on top of the projects, managing different stakeholders and business objectives. They are flexible in terms of ways of working and are able to cope with last minute changes. The research findings (Quant + Qual) have helped us understand Vietnamese in a deeper level, allowing us to make clear decisions to be successful in the market. Thank you Cimigo team for supporting us.