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Mar 29, 2022 / 18:51

Vietnam's GDP growth hits 5.03% in Q1

A GDP growth of 6.5% for 2022 would be a challenge given the global uncertainties and inflationary pressure from rising key commodities prices in international markets.

Vietnam’s GDP growth in the first quarter of 2022 is estimated at 5.03% year-on-year, higher than the respective rate of 4.72% and 3.66% in the first three months of 2021 and 2020.

 Data: GSO. Chart: Nguyen Tung

Director-General of the General Statistics Office Nguyen Thi Huong gave the information at a press conference held today [March 29].

During the three months, the majority of economic sectors have shown signs of recovery, in which the agro-forestry-fishery expanded by 2.45%, contributing 5.76% to the overall growth; the industrial and construction sectors grew by 6.38%, or a 51.08% of the total growth; and services by 4.58%, or 43.16% of the growth.

Manufacturing and processing remained a growth-driving engine for the economy with an expansion rate of 7.79% year on year. Which, the mining sector posted a growth rate of 1.23%, and construction of 2.57%, albeit lower than the 6.53% recorded in the first quarter of 2021.

The services sector was among the beneficiaries of a subdued pandemic, while other sectors such as finance-banking and insurance went up by 9.75%; logistics by 7.06%, wholesale and retail by 2.98%.

The first quarter also recorded a strong performance of trading activities. Total trade turnover during the period rose by 14.4% year-on-year to $176.35 billion, in which exports climbed by 12.9% and imports by 15.9%.

The GSO chief, however, warned of growing challenges for the economy in the second quarter, pointing out the country’s high level of economic openness, the geopolitical tension and its consequences on the global economy, and the rising prices of key commodities.

“A GDP growth of 6.5% for 2022 would be a challenge,” Huong said.

To realize this target, Huong called for the strict implementation of the Government’s Resolution No.128 on safe and flexible adaptation to the pandemic and greater efficiency in public investment.

“Vietnam should remain steadfast in stabilizing the macro-economic conditions, market prices, and update inflation scenarios to deal with future economic shocks,” she added.

Huong also expected the country to focus on promoting economic self-reliance by ensuring self-sufficiency in domestic production and removing barriers to local consumption.