Vietnam's GDP expands 8.83% in nine months, the highest level in 11 years

Hanoi (VNA) - Vietnam's gross domestic product (GDP) expanded by 13.67% in the third quarter of this year, raising the country's GDP in the first nine months by 8.83%, the highest level in the past 11 years, the General Statistics Office (GSO) announced on September 29.

According to the GSO, the third quarter posted such high growth as last year, which saw the COVID-19 pandemic break out strongly, seriously affecting production and business activities.

Upbeat signs were reported in almost all aspects between January and September. GDP was estimated to rise 8.83%, the highest nine-month growth recorded between 2011 and 2022.

The GSO also pointed out that the agro-forestry-fishery sector rose by 2.99% in the first nine months of 2022. Meanwhile, the industry and construction sector increased by 9.44%, and service rose by 10.57%.

Regarding GDP use, final consumption expenditure climbed 7.26% over the same period last year; accumulated assets rose by 5.59%; exports of goods and services up 8.94%; and imports of goods and services up 4.74%.

GSO General Director Nguyen Thi Huong said in the period, ministries, sectors, and localities have drastically implemented the Government's resolutions serving the nation's programme for recovery and socio-economic growth.

As a result, the macro-economy was stabilised, inflation was put under control, major balances ensured, monetary and fiscal policies conducted flexibly and effectively, the business investment environment improved positively, and social security was guaranteed, she noted.

According to the official, the country's GDP growth in 2022 can reach 8%, surpassing the target of 6.5%.

The GSO held that pressure on the growth from now to the year's end is not too heavy as Vietnam has been maintaining some bases and room over the past nine months.

Besides, the economic recovery package will be implemented strongly in the fourth quarter while the agricultural, service, and processing-manufacturing sectors still have much room to grow in the last three months.

Pointing out certain adverse factors, the GSO said unpredictable global economic impacts, the world's complex geopolitical situation, natural disasters, and inflation might adversely affect Vietnam's export. In addition, growing fuel prices and changes in international exchange rates are predicted to cause pressure on enterprises' production inputs.

In particular, the openness of the country's economy is relatively large, so fluctuations in the global economy will directly or indirectly affect businesses' production activities and people's lives, according to the GSO.

With flexible moves by the Government, ministries, sectors, and localities, along with people and businesses' consensus, the Vietnamese economy will continue to be consolidated to sustain production and export.

Huong said that a GDP growth rate of 7.5-8% in 2022 is achievable.

Vietnam posted year-on-year growth of 8.83% in the first nine months of 2022, the highest nine-month level during 2011 - 2022. The economy expanded by 13.67% in the third quarter compared to last year's period.

The GSO noted that this is an extremely positive result beyond expectations and forecasts.

The latest Vietnam report of Standard Chartered also said that the nation's economic recovery would be stronger in the second half of 2022, particularly as the country resumed its tourism after a two-year closure.

The report said the Vietnamese economy continued recovering in August as the recovery has shown signs of broadening.

The bank maintained its forecast for Vietnam's GDP growth at 10.8% and 3.9% in the third and fourth quarters of this year, respectively, taking the full-year growth to 6.7%.

Tim Leelahaphan, Standard Chartered Economist for Thailand and Vietnam, forecasts that the recovery will accelerate remarkably. However, he also warned that high global oil prices might negatively impact the Vietnamese economy./.