Vietnam H1 GDP growth drops to decade-low on Covid-19
The Hanoitimes - Manufacturing and processing remained the driving force of the economy in the first six months with an expansion of 4.96% year-on-year.
Vietnam’s GDP has expanded 1.81% year-on-year in the first half of 2020, the lowest six-month growth rate in the past 10 years, dragged down by the growing impacts of the Covid-19 pandemic and global uncertainties, the General Statistics Office (GSO) has announced.
|Data: GSO. Chart: Ngoc Thuy.|
In the second quarter, the country’s GDP growth is also estimated at a 10-year low of 0.36%.
Duong Manh Hung, director of the GSO’s System of National Accounts Department, told VnExpress the country’s GDP growth of 1.81% in the first half of the year was even lower than GSO’s least optimistic growth scenario.
As the government prioritizes the fight against the pandemic to economic growth, a positive economic growth rate in the January – June period indicates strong efforts of both the government and the whole society to maintain business operations while combating Covid-19, said the GSO in a quarterly report released Monday.
In the January – June period, the sector of agriculture, forestry and fishery increased by 1.19%, contributing 11.89% to the overall growth; the sector of industry and construction rose by 2.98%, contributing 73.14%; and the service sector climbed by 0.57%, contributing 14.97%.
In the industry and construction sector, the industry expanded 5.28% year-on-year in the second, significantly lower than the 10.45% growth rate of Q1/2019 and contributing 1.89 percentage points to the overall growth.
Manufacturing and processing remained the driving force of the economy in the first six months with an expansion of 4.96%, along with whole sale and retail with a growth rate of 4.3%, finance – banking and insurance with 6.78%.
Regarding the structure of the economy during the first half of the year, the sector of agriculture, forestry and fishery made up 14.16%; the sector of industry and construction accounted for 33.44%; the service sector represented 42.04%; and product taxes less subsidies on production accounted for 10.36%.
In terms of GDP use during this period, the final consumption rose by 0.69% against the same period of last year; accumulated assets grew by 1.93%; trade balance of goods and services shrank by 2.23%.
The growth target of 6.8% for this year, thus, has become unrealistic in this current crisis, which would required growth rates of over 10% in the last two quarters, Hung from GSO commented.
The International Monetary Fund (IMF) has forecast Vietnam's economy to grow 2.7% this year, the highest in Asia.
- Vietnam’s transport ministry proposes reopening Asia air routes from August
- Vietnam climbs two places in UN e-government index 2020
- Australia, UNDP continue to help Vietnam improve good governance, citizen participation
- China, US trade barbs over South China Sea
- Vietnam, US may upgrade ties to strategic partnership next year: Thayer
- Former President Clinton ‘grateful’ for 25 years of Vietnam-US partnership
- More Vietnamese citizens from UK, Singapore brought home
- Senator committed to deepening US-Vietnam comprehensive partnership
- Vietnam reopens int’l air services to some Asian countries from mid-July
- Nearly 31 million workers in Vietnam affected by Covid-19: Report
Hanoi aims to be a sci-tech hub of the country: City Party chief
Two thirds of Vietnamese married women suffer domestic violence: Study
Vietnam climbs two places in UN e-government index 2020
Vietnam’s transport ministry proposes reopening Asia air routes from August
Vietnam rises in global real estate transparency index: JLL
ASEAN Summit in Hanoi expected to boost intra-regional economic links
Hanoi works closely with ADB to ensure progress of urban infrastructure projects
Vietnam Airlines retakes Jetstar Pacific from Qantas
Hanoi strives to ensure safe and stable investment environment for investors