Annual GDP growth projected to reach 5.42 per cent

Annual GDP growth projected to reach 5.42 per cent

This 2013 growth of the country's Gross Domestic Product (GDP) is expected to increase 5.42 per cent over last year, according to officials.

The figure released by the General Statistics Office (GSO) in Ha Noi yesterday showed that the rate was lower than the set target of 5.5 per cent, but higher than last year's rate of 5.25 per cent. The office said this growth indicates that the economy is continuing to recover.

Among industries showing growth have been agro-forestry and the fisheries sectors, posting a 2.67 per cent increase, compared to last year. Industrial and construction sectors rose 5.43 per cent, which was lower than the growth rate of 5.75 per cent last year. Service sectors represented a 6.56 per cent year-on-year increase and contributed 2.85 per cent to the total growth.

Further, the agro-forestry and fisheries sector accounted for 18.4 per cent of the economy, while the industrial and construction industry made up 38.3 per cent and the service industry was 43.3 per cent.

The GDP growth rate in the first quarter, second quarter, third quarter and fourth quarter were 4.76 per cent, 5 per cent, 5.54 per cent and 6.04 per cent, respectively.

FDI surpasses target

Viet Nam is expected to attract US$21.6 billion in foreign direct investment (FDI) this year, representing a 54.5 per cent increase over last year.

GSO said newly registered FDI capital this year is estimated to reach $14.3 billion in 1,275 projects, posting a 70.5 per cent increase compared to last year.

Meanwhile, officials from 472 existing projects in the country announced plans to increase investments by $7.3 billion, a 30.8 per cent year-on-year surge.

FDI disbursements this year reached $11.5 billion, increasing 9.9 per cent over last year.

The processing and manufacturing industries remained on top of the list of 18 sectors that received foreign investment, with capital of $16.6 billion, and accounting for 76.9 per cent of the total. Electricity production and distribution, gas and air conditioner production reached $2 billion, accounting for 9.4 per cent, while other sectors made up $3 billion, accounting for 13.7 per cent.

According to the Foreign Investment Agency, Viet Nam has attracted seven FDI projects with capital of more than $1 billion each. Nghi Son Refinery project in central Thanh Hoa Province received $10 billion. In addition, several world leading groups, such as LG, Samsung and Nokia, have invested in Viet Nam.

FDI inflows have been poured into manufacturing and processing industries, which were targeted to contribute to the country's industrialisation and modernisation process, instead of the property sector.

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