Vietnam’s economy grows 5.73 pct in first half

Posted on 30 June 2017
 

Source: VietNamNet Bridge

 The first-quarter growth hit 5.15 percent while the second quarter’s was 6.17 percent thanks to the government’s efforts to improve business climate. 

Specifically, the agro-forestry-fisheries sector expanded 2.65 percent in the six-month period. Industry and construction grew 5.81 percent while services went up by a five year record 6.85 percent. 

Ha Quang Tuyen, head of the GSO’s National Account Department, said 17 out of 21 industries recorded higher growth rate in Q2 on a quarterly basis, notably manufacturing and engineering (10.5 percent), contributing 1.79 percentage point to the economic growth. 

Director of the GSO’s Price Statistics Department Vu Thi Thu Thuy said the average consumer price index (CPI) increased by 4.15 percent for the six-month period, lower than the 4.96 percent rise recorded in the first quarter, which showed inflation is on a decreasing trend to a reasonable level, meeting the Government’s target

Meanwhile, exports and imports went up 18.9 percent and 24.1 percent, respectively. 

From early this year till June 20, the country attracted 1,183 new foreign-invested projects worth 11.84 billion USD, up 56.3 percent in project number and 57.9 percent in capital year-on-year.

Also during the period, 61,276 new firms were established with a total registered capital of 596 trillion VND (25.91 billion USD), marking respective increases of 12.4 percent and 39.4 percent in firm number and capital. 

However, GSO experts stressed that the growth rate barely met the target, the disbursement of investment capital was slow and agricultural production was still under the negative effects of the saline intrusion in the previous year. 

There was neither any breakthrough change in the growth model nor major change in the economic structure. Trade deficit has returned, standing at an estimated 2.7 billion USD, equivalent to the same period last year. 

GSO Director General Lam said in order to achieve a 6.7 percent growth this year, a growth of 7.4 percent should be achieved in the latter half of the year, which is a hard task. 

According to the head of the National Account Department, there are still opportunities for the country to meet the set goal. He said the business sector is a major resource for growth. Besides, the disbursement of social investment, with more than 60 percent left for the second half of the year, will help accelerate economic growth. In recent years, social investment usually accounts for more than 50 percent of GDP this year. 

Tuyen added that the manufacturing-processing sector is expected to record high growth, with several large-scale steel projects are slated to become operational in the last months of the year.



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