The strong development of key economic sectors has been attributed to the country’s 5.8 percent GDP growth in the first quarter of this year, which has created a basis for the economy’s sustainable recovery.
According to the General Statistics Office (GSO), the three major components that have contributed to the growth in GDP are agro-forestry-fisheries, industry and construction and the service sector. They all experienced a fairly high growth compared to the same period last year, with the services sector achieving the highest rate of 6.64 percent.
Agro-forestry-fisheries and industry and construction saw growth rates of 3.45 percent and 5.65 percent, respectively, during this period, which far exceeded the corresponding 0.4 percent and 1.5 percent for the same period last year.
Both the GSO and the National Centre for Socio-Economic Forecasting and Information (NCSEFI) agreed that industrial production and the thriving services sector clearly indicate a recovery in the economy.
In the first quarter, total industrial production increased by 13.6 percent year-on-year to 173.5 trillion VND, while retail sales rose 24 percent rise to 364.5 trillion VND.
However, the Director of the NCSEFI, Dr. Le Dinh An, said that no breakthrough in economic growth was made in Q1 as expected. The above-mentioned 5.8 percent growth only represents a modest rise over the same period last year, when the economy was at “rock bottom.”
Despite the recovery, the economy still faces many difficulties and challenges, with the biggest threat being the possible reappearance of inflation, said An.
GSO statistics showed that the consumer price index (CPI) in the first three months of this year increased continuously, helping it to jump by 8.51 percent against the same period last year.
While exports faced difficulties, imports surged, resulting in a trade deficit for this period of 3.5 billion USD, or 25 percent of the total export value. Despite having taken measures at the beginning of the year, the results have been limited and have put more pressure on the balance of payments.
To create a firm foundation for the economy’s recovery, Dr. An stressed on the necessity to monitor the macro economy, by implementing flexible monetary policies and increasing exports.
According to the GSO, in order to reach a yearly GDP growth rate of 6.5 percent, the GDP growth rate in the remainig three quarters will have to reach 6 percent, 6.5 percent and 7.3 percent, respectively./.
According to the General Statistics Office (GSO), the three major components that have contributed to the growth in GDP are agro-forestry-fisheries, industry and construction and the service sector. They all experienced a fairly high growth compared to the same period last year, with the services sector achieving the highest rate of 6.64 percent.
Agro-forestry-fisheries and industry and construction saw growth rates of 3.45 percent and 5.65 percent, respectively, during this period, which far exceeded the corresponding 0.4 percent and 1.5 percent for the same period last year.
Both the GSO and the National Centre for Socio-Economic Forecasting and Information (NCSEFI) agreed that industrial production and the thriving services sector clearly indicate a recovery in the economy.
In the first quarter, total industrial production increased by 13.6 percent year-on-year to 173.5 trillion VND, while retail sales rose 24 percent rise to 364.5 trillion VND.
However, the Director of the NCSEFI, Dr. Le Dinh An, said that no breakthrough in economic growth was made in Q1 as expected. The above-mentioned 5.8 percent growth only represents a modest rise over the same period last year, when the economy was at “rock bottom.”
Despite the recovery, the economy still faces many difficulties and challenges, with the biggest threat being the possible reappearance of inflation, said An.
GSO statistics showed that the consumer price index (CPI) in the first three months of this year increased continuously, helping it to jump by 8.51 percent against the same period last year.
While exports faced difficulties, imports surged, resulting in a trade deficit for this period of 3.5 billion USD, or 25 percent of the total export value. Despite having taken measures at the beginning of the year, the results have been limited and have put more pressure on the balance of payments.
To create a firm foundation for the economy’s recovery, Dr. An stressed on the necessity to monitor the macro economy, by implementing flexible monetary policies and increasing exports.
According to the GSO, in order to reach a yearly GDP growth rate of 6.5 percent, the GDP growth rate in the remainig three quarters will have to reach 6 percent, 6.5 percent and 7.3 percent, respectively./.
