Top 4 Growing Industries in 2024

The sectors of information technology and telecommunications; electricity and energy; pharmaceutical and medicine; and finance/banking are projected to experience significant growth in 2024.

The pharmaceutical and medicine industry stands tall as one of the top four sectors experiencing remarkable growth in 2024

According to the latest business survey conducted by Vietnam Report Joint Stock Company, the information technology (IT) industry has recorded the third consecutive year of standing at No. 1 position in growth potential. The global technology boom has supported optimistic expectations about the sector's prospects.

Gartner, a technology research and consulting company, said that global information technology spending is forecast to maintain high growth in 2024, with spending on cloud computing technology and AI being the two main drivers for growth. This creates positive signals for the breakthrough potential of Vietnamese technology firms towards technology cooperation, connection and export.

In addition, Vietnam is climbing up the ladder in the technology value chain as foreign investment projects are encouraged in chip manufacturing and high technology, thus creating a promising development environment for technology businesses.

The second placed growth potential in 2024 belongs to the electricity/energy industry, with the choice of 50% of businesses. This figure is significantly higher than that in surveys in 2023 (+16.7%) and 2022 (+22.1%).

In 2024, a recovery in manufacturing and construction activity is expected to maintain the momentum for electricity demand growth. The electrical construction and installation sector is also expected to accelerate with the 500-KV Quang Trach - Pho Noi transmission line while LNG gas power, which plays an important role in the green transformation journey in Vietnam, will have much potential for growth.

According to the National Power Development Plan for the 2021 - 2030 period, with a vision to 2050 (Power Plan VIII), LNG-fueled power will account for more than 14.9% of the total electrical generation capacity by 2030 and is one of the sources that helps ensure sufficient, stable and safe supply of the national electricity system.

Besides, in the oil and gas sector, global crude oil demand has kept rising while the risk of tightened supply is lingering since OPEC+ countries extend production cut agreements, the Russia-Ukraine conflict drags on, and geopolitical tensions escalate in the Middle East.

Data from the U.S. Energy Information Administration (EIA) showed that crude oil output averaged 99.4 million barrels a day in 2022 and global demand rose by nearly 1.6 million barrels a day in 2023 and then by 1.4 million barrels a day in 2024. Therefore, the industry's outlook is forecast to be relatively bullish, especially for upstream companies, thanks to more vibrant exploration and production activities.

The third- and fourth-placed industries are pharmaceutical/medicine; and finance/banking.

2024 is a very challenging year because a lot of things need to be solved. However, it cannot be denied that new motivations and opportunities for economic recovery in general and business development in particular are gradually becoming clearer.

Although disruptive growth is not likely, leveraged by traditional driving forces and a solid launching pad from an increasingly perfect and consistent legal environment, businesses can believe that 2024 will be an important "buffer zone" to transition to recovery and growth.

Source: Vietnam Business Forum