Vietnam’s economy grows 6.76% in first half
Vietnam’s economy grows 6.76% in first half
The nation’s gross domestic product (GDP) expanded 6.76% in the first six months of 2019, way below 7.08% recorded in the same period last year. However, this is a positive figure compared with the 2011-2017 period.
A socioeconomic report released by the General Statistics Office (GSO) today, June 28, put Vietnam's second quarter GDP growth at 6.71%, with the primary industry expanding 2.19%, the industrial and construction sector 9.14% and the service sector 6.85% over the same period last year.
GSO General Director Nguyen Bich Lam said GDP dropped by 0.02 percentage point between April and June, and the figure in the first half was also lower than in the year-ago period. However, the numbers were still higher than those registered in the 2011-2017 period.
This proves that the Government’s socioeconomic development solutions have paid off. Besides this, ministries and local authorities have made great efforts to meet the development targets, Lam said.
In January-June, the agro-forestry-aquaculture industry picked up 2.39% and contributed 6% to the overall growth. Industry and construction rose 8.93% and contributed 51.8%, while the respective figures in the service sector were 6.69% and 42.2%.
For the economic structure, the primary industries now account for 13.55% of GDP; industry and construction, 34.2%; and service, 42.04%.
According to GSO, the nation is still on the high-growth path despite global economic uncertainties. Trade tensions between large economies have dragged down trade and investment activities, dampening the confidence of the business community.
Earlier, the International Monetary Fund warned that the world is facing a time of high uncertainty, with 70% of the global economy caught in a slowdown.
The IMF also revised down its estimates for global growth to 3.3% for 2019, 0.2 percentage point below its last forecasts. The World Bank also forecast the growth of the global economy would slow to 2.6% in 2019, compared with the 2.9% estimated in January.
Further, geopolitical tensions have developed, with the United States raising its sanctions against Iran and the U.S. dollar and oil price movements becoming unpredictable. These issues have had significant impact on the local economy.
Commenting on the domestic situation, Lam said the economy is facing multiple challenges as the farming industry may suffer a poor harvest due to unfavorable weather conditions.
Meanwhile, the husbandry sector is struggling with the rapid spread of African swine fever. Exports of some key products have also slowed down and public investment capital disbursement has remained low.
However, to cope with the difficulties, the Government has taken measures to meet development goals, thus improving socioeconomic development in the first half of the year, Lam noted.
