Vietnam’s nine-month GDP growth hits eight-year record

08:35 | 15/10/2018 Economy- Society

(VEN) - Vietnam’s gross domestic product (GDP) for the January-September period grew at a rate of 6.98 percent, the highest for this period over the past eight years, according to a recent report by the General Statistics Office of Vietnam (GSO) on the country’s socioeconomic performance. 

vietnams nine month gdp growth hits eight year record

GSO General Director Nguyen Bich Lam said that in the third quarter of the year, GDP grew by 6.88 percent compared to a year ago, lower than the 7.45 percent of the first quarter but higher than the 6.73 percent growth in the second quarter, reflecting the economy’s continued growth momentum. Of which, the agro-forestry-fishery sector registered a 3.46-percent expansion, while the industry-construction sector posted an 8.61-percent increase, and the service sector increased by 6.87 percent.

In terms of GDP use in the third quarter of the year, final consumption rose by 7.02 percent compared to a year ago, while accumulated assets grew by 8.61 percent, exports of goods and services increased by 15.13 percent, and imports of goods and services grew by 14.76 percent.

Nguyen Bich Lam said the Vietnamese economy was on track to fulfill the government’s growth target for the full year. The macroeconomic indexes demonstrated the effectiveness of the leadership of the government and efforts of ministries, departments, agencies and localities since the early days and months of this year, Lam said.

During the January-September period, the agro-forestry-fishery sector registered a 3.65-percent expansion, contributing 8.8 percent to the overall growth. The industry-construction sector posted an 8.89-percent increase, contributing 48.7 percent to the overall growth, while the service sector, with a 6.89-percent increase, contributed 42.5 percent.

The agro-forestry-fishery sector grew at the fastest rate in the 2012-2018 period, demonstrating the success of the sector’s restructuring coupled with the expansion of export markets. The agricultural sector continued to confirm a clear recovery with a 2.78-percent increase, contributing 0.3 percentage points to the overall growth rate. Forestry increased by 5.9 percent, contributing 0.04 percentage points, while fisheries posted a 6.37-percent increase, contributing 0.22 percentage points.

In terms of the industry-construction sector, in the first nine months of the year, industry recorded an increase of 8.98 percent, while construction posted an 8.46-percent increase. The processing and manufacturing industry grew at 12.65 percent, contributing 2.56 percentage points to the overall growth rate. The mining industry dropped by 1.97 percent, reducing 0.14 percentage points from the overall growth rate. However, the drop in the growth rate was significantly smaller than a year ago.

The service sector recorded a growth of 6.89 percent in the January-September period, lower than the rate of 7.21 percent in the same period last year.

In terms of GDP use in the first nine months of the year, final consumption rose by 7.09 percent compared to a year ago, while accumulated assets grew by 7.71 percent, exports of goods and services increased by 15.52 percent, and imports of goods and services grew by 14.22 percent.

Other economic indicators also showed positive signs. Business sentiment is optimistic with the Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI) constantly rising from 51.6 points in March, reaching a peak of 55.7 points in June and maintaining at 53.7 points in August.

vietnams nine month gdp growth hits eight year record

However, in addition to positive results, the economy faces many challenges and difficulties. Many external risk factors, including the escalating trade war between China and the United States, could affect domestic prices throughout the remaining months of the year.

To fulfill the socioeconomic development targets in 2018 and create growth momentum in 2019 , ministries, departments, agencies and localities should closely follow market developments, drastically implement tasks set out in Resolution 01/NQ-CP, continue managing monetary policy in an active, cautious and flexible manner and combine with other fiscal and macroeconomic policies to control inflation, ensure credit institutions’ liquidity, stabilize monetary and foreign exchange markets, cut business conditions, promote administrative reforms, enhance links between production, processing and consumption, and strengthen scientific and technological application to enhance competitiveness.

The Vietnamese economy would need to grow at just 6.11 percent in the final quarter of the year to achieve the full

year’s target of 6.5 to 6.7 percent.

Thu Phuong