Illustrative image (Source: VNA)

 

Hanoi (VNA) – Although Vietnam’s gross domestic product (GDP) growth in the first half of 2019 was only 6.76, well below the 7.08 percent growth rate in the same period last year, it was a good result compared to the figures from 2011-2017.

According to the General Statistics Office (GSO)’s socio-economic report for the first half of 2019, the country’s GDP in the second quarter is estimated to expand 6.71 percent year on year.

The growth rate of the agro-forestry-fishery sector was 2.19 percent, while that of industry-construction was 9.14 percent and service 6.85 percent.

Slight drop over the same time last year

According to Director of the GSO Nguyen Bich Lam, the GDP expansion in the second quarter of 2019 was 0.02 percentage points lower than the figure in the same period last year, but it was still a good result compared to those in corresponding periods of 2011-2017.

In the period, exports of goods and services rose 7.27 percent, while imports were up 7.38 percent, said the report.

Therefore, although the GDP growth in the first six months of 2019 was lower than that in the same time last year, it was still a positive result compared to the figures in the first half of 2011-2017, said Lam.

“This showed the timeliness and efficiency of solutions issued by the Government in the socio-economic development plan for 2019, as well as efforts of sectors and localities in implementing growth targets,” stated Lam.

He noted that the agro-forestry-fishery sector saw an expansion of 2.39 percent, contributing 6 percent to the GDP growth, while the figures for industry-construction were 8.93 percent and services were 6.69 percent, contributing 51.8 percent and 42.2 percent to the country’s GDP growth, respectively.

Regarding the economic structure, the agro-forestry-fishery sector made up 13.55 percent of the GDP, while the industry and construction sector accounted for 34.2 percent, and services 42.04 percent and tax on products, 10.21 percent. The respective contributions in 2018 were 14.13 percent, 33.83 percent, 41.8 percent and 10.24 percent.

Maintaining growth speed amidst “high risks”

In the first half of this year, the world witnessed slower growth due to many risks and challenges.

The peak of the problem was trade tensions among world powers, leading to a slump in trade and investment and resulting in declining business confidence.

The International Monetary Fund (IMF) warned that the world economy has experienced a “risky” period as the majority of developed economies saw slowing growth.

Specifically, economies in the euro zone and some newly emerged markets recorded lower growth than expected, prompting many international financial organisations to give less optimistic forecasts for global economic expansion for 2019.

For example, the IMF lowered its global economic growth prediction for 2019 to 3.3 percent, compared to its previous forecast of 3.5 percent.

Meanwhile, the Organisation for Economic Cooperation and Development (OECD) also cut its prediction by 0.1 percentage point to 3.2 percent for the world’s economic growth this year. The World Bank (WB) even gave a 2.6 percent forecast for global economic growth in 2019, 0.3 percentage point lower than the bank’s earlier figure.

At the same time, issues like the US’s tougher sanctions against Iran, as well as the unpredictable US dollar and oil prices have also posed challenges to the world economy and great impacts on Vietnam.

On the domestic situation, Lam said the country’s economy has seen great difficulties and challenges due to complicated weather developments that influence agricultural output.

Furthermore, the livestock husbandry sector has suffered from African swine fever spreading across the country. The growth of a number of major export products has slowed down, while the disbursement of public investment has been slow.

However, the GSO Director affirmed that amidst that situation, the Government and the Prime Minister have given timely directions to ministries, sector and localities to help them complete the set targets. Thus, the Vietnamese economy has seen positive signals in the first half of this year, Lam stressed.-VNA