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Wednesday, June 19, 2024

Vietnam’s GDP expands 5.03% in Q1

The Saigon Times

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HCMC – Vietnam’s gross domestic product (GDP) grew 5.03% in the first quarter of this year, higher than the 4.72% and 3.66% during the same period of 2021 and 2020, but much lower than the 6.85% in the first quarter of 2019, according to the General Statistics Office (GSO).

This morning, March 29, GSO announced the country’s socioeconomic performance in the first three months of the year, with most sectors showing signs of recovery after the reopening of the country’s economy, the local media reported.

Accordingly, the agro-forestry-fishery sector gained year-on-year growth of 2.45% and contributed 5.76% to the nation’s economic growth.

In addition, the industry-construction sector expanded 6.38%, while the service sector rose 4.58%. The two sectors contributed 51.08% and 43.16% to GDP, respectively.

In the industry-construction sector, processing and manufacturing were a major growth driver, with a 7.79% year-on-year rise.

As the Covid-19 pandemic has been brought under control, services have resumed. The finance-banking-insurance grew 9.75%; transport, 7.06% and wholesale-retail, 2.98%.

The first quarter also witnessed the recovery of import-export activities, with total import-export revenue reaching US$176.35 billion, up 14.4% over the year-ago period. Of them, exports picked up 12.9% and imports increased 15.9%.

According to the GSO, in the January-March period, the number of newly-established enterprises and those resuming operations surged 36.7% year-on-year. In addition, new investment in the country rose 21%, with the capital added to operational projects rising 34.5%.

Furthermore, the soaring prices of fuels, gas and essential consumer goods and services as well as house rentals sent the consumer price index (CPI) in March up 0.7% month-on-month. The index increased 2.41% over the same period last year.

In the first quarter of 2022, the CPI inched up 1.92% year-on-year, while core inflation edged up 0.81%.

According to GSO, Vietnam will face a bumpy ride in the second quarter due to the global economic slowdown and rising goods prices.

Therefore, the nation’s 6.5% GDP growth target for this year might be hard to achieve.

To reach the target, GSO suggested continuing deploying Resolution 128 on safely and flexibly adapting to and effectively controlling Covid-19, accelerating the disbursement of public investment, stabilizing the macroeconomy and the prices of products, constantly getting updates on inflation scenarios and keeping a close watch on the prices of necessities.

In addition, the country should boost local production, take the initiative in material and fuel supplies and facilitate consumption in the domestic market.

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