Illustrative image (Photo: VNA) Singapore (VNA) – Vietnam’s Q1 growth was at thehighest level since 2020 despite global economic turmoil, reportedThe Business Times of Singapore.
The article cited the General Statistics Office(GSO)’s report on March 29 as saying that Vietnam’s gross domestic product (GDP)grew 5.66% year on year in the first quarter, with export growth returning to adouble-digit rate. This expansion was greater than those recorded in thesame period in the previous four years, but slower than the 6.72% rise in thepreceding quarter.
The largest contributors to Vietnam’s growthduring the quarter was the service and manufacturing sectors, which grew 6.12% and6.98%, respectively.
The country’s exports in March surged by 14.2% froma year ago to roughly 34 billion USD. Imports also rose by 9.7% from a yearearlier to nearly 31.1 billion USD. Overall, exports and imports sawdouble-digit expansions of 17% and 13.9%, respectively, compared to the sameperiod last year. This resulted in a trade surplus of around 8.1 billion USD inthe first quarter.
Industrial production in March jumped 4.1% year on year. Analysts expected production to catch up with exportgrowth in the coming months, with rising numbers of new orders and depletinginventories. Increased factory activities will also likely boost employment andstimulate consumption more firmly in the second half of the year.
Even though the improved exports andconsumption prospects tend to buoy investment and lending demand, relativelyhigh borrowing costs and limited access to bank loans remain hurdles fordomestic companies, the article wrote.
As of March 25, it said the credit growth ofthe banking system increased by a modest 0.26% against the end of 2023./.
