GDP climbs 6.76 per cent in six months

01/07/2019 12:00 - 49 total view

Việt Nam’s gross domestic product (GDP) grew 6.76 per cent in the first half of this year, the second highest rate since 2011.

The growth was fuelled by a stable macro-economy, impressive rice exports, declining unemployment rate, and robust economic production, Director General of the General Statistics Office (GSO) Nguyễn Bích Lâm said at a press conference on Friday.

The processing and manufacturing sector remained the pillar of GDP growth, posting a growth of 11.18 per cent, lower than the same period last year but much higher than H1 of 2012-2017.

The agro-forestry-fishery sector expanded 2.39 per cent, contributing 6 per cent to GDP growth. Expanding 8.93 per cent, and 6.69 per cent, the industrial and construction sector, and service industry contributed 51.8 per cent, and 42.2 per cent, respectively, to growth.

Lâm said that the agro-forestry-fishery sector was facing formidable challenges as the prolonged heatwave decreased productivity while African swine fever outbreaks had threatened the livestock sector’s health.

Meanwhile, the service industry was backed by rosy wholesale and retail sales, financial activities, banking and insurance, transportation and warehouses.

The Vietnamese economy had shown positive signs, with business confidence remaining high among domestic and foreign investors in the period, Lâm said.

According to Nikkei report, the Việt Nam Manufacturing Purchasing Managers’ Index (PMI) stood at 52 points, which is higher than regional countries. Producers believed that customer demand improved, and there were rises in new orders both from domestic and overseas clients.

A survey conducted by the GSO in Q2 showed that most businesses had good business results, and felt upbeat about the situation in Q3.

CPI growth

Also at the meeting, GSO revealed that the consumer price index (CPI) in the first half of 2019 increased on average 2.64 per cent against the same period last year, the slowest pace recorded over the past three years.

GSO said that the index in June dropped 0.09 per cent over the previous month but expanded 2.16 per cent year-on-year.

The agency attributed the fall and the slight growth to price management efforts as well as the flexible monetary policy of the State Bank of Việt Nam.

Đỗ Thị Ngọc, head of the Price Statistics Department, said prices of some consumer goods went up in the first six months due to increased demand during the Tết (Lunar New Year) holiday.

In the reviewed period, food, beverages and cigarettes, clothes, public transport and tourism services experienced price hikes.

The adjustment of electricity prices and the greater demand during Tết – the longest and most important annual holiday in Việt Nam – and the second quarter which marked the run of the hot weather led to a year-on-year rise of 5.84 per cent in electricity prices.

Prices of construction materials and office supplies also increased.

Between January and June, the price of oil and gas fell 3.55 per cent against the corresponding period last year, contributing to a 0.15 per cent fall in the CPI.

Education and health services also experienced price decreases during the period.

Statistics show that June’s basic inflation (CPI exclusive of foodstuff, fresh food, energy, healthcare and education services) rose 0.16 per cent against the previous month and 1.96 per cent year-on-year.

In the first half, the figure went up 1.87 per cent year-on-year, which, GSO said, signaled the efficiency of the monetary policy.

Source: Vietnam News