Vietnam GDP growth hits 10-year low of 2.12% in Jan-Sept amid Covid-19
Although the country’s GDP growth in the third quarter is estimated at a decade-low of 2.62%, this is an improvement from the 0.36% growth in the second quarter.
Vietnam’s annualized GDP growth in the January – September period of 2020 is estimated at 2.12%, the lowest 9-month growth rate in the past 10 years, dragged down by the deelply-felt impacts of the Covid-19 pandemic, the General Statistics Office (GSO) has announced.
Data: GSO. Chart: Hai Yen.
Although the country’s GDP growth in the July-September is also estimated at a decade-low of 2.62%, this is still higher than the 0.36% growth in the second quarter when nationwide social distancing measures were implemented to prevent the spread of the novel coronavirus.
The GSO attributed the growth to the containment of the Covid-19 pandemic that has led to a resumption of economic activities in a new normalcy.
Additionally, positive economic growth amid unprecedented impacts from the Covid-19 pandemic evidenced strong efforts of both the government and the whole society in maintaining business production while combating Covid-19, said the GSO in its latest report.
In the January – September period, the sector of agriculture, forestry and fishery expanded by 1.84%, contributing 13.62% to the overall growth. The sector of industry and construction grew by 3.08%, contributing 58.35%, while the services sector climbed by 1.37%, contributing 28.03%.
Slower growth of the agro-forestry-fishery sector compared to the same period last year was due to effects of climate change, the Covid-19 pandemic and the African swine fever. The agricultural sector expanded at a modest rate of 1.65% during the period, contributing 0.19 percentage points to the overall growth.
In the industry and construction sector, the industry expanded 2.69% year-on-year in the nine-month period, contributing 0.91 percentage points to the overall growth.
Manufacturing and processing, the driving force of the economy in 2019, grew 4.6% year-on-year and contributed 1.02 percentage points.
In the first few months of 2020 after the pandemic broke out, trade and services were among the hardest hit sectors. The services sector recorded the slowest growth for 9-month period during 2011 – 2020. With a growth rate of 4.98%, wholesale and retail contributed the highest added value to the economy in the service sector with 0.54 percentage points, while accommodation and catering services contracted 17.03%, equivalent to a decline of 0.76 percentage points.
Regarding the structure of the economy during the January – September period, the sector of agriculture, forestry and fishery made up 14.05%; the sector of industry and construction accounted for 33.16%; the service sector represented 42.73%; and product taxes less subsidies on production accounted for 10.06%.