Mining, manufacturing push GDP up 6% in Q1

The mining sector experienced a year-on-year growth of 6.7 per cent in the first quarter thanks to crude oil and coal output increases of 9.8 per cent and 3.2 per cent, respectively. — Photo laodong

HA NOI (Biz Hub) — Viet Nam's gross domestic product (GDP) edged up 6.03 per cent in the first quarter of this year on the strength of "effective contributions" from mining and manufacturing industries, the General Statistics Office (GSO) announced yesterday.

GSO Director General Nguyen Bich Lam noted that the growth was higher than in corresponding periods in the preceding four years (2011- 14).

The mining sector experienced a year-on-year growth of 6.7 per cent in the first quarter thanks to crude oil and coal output increases of 9.8 per cent and 3.2 per cent, respectively.

The manufacturing industry grew by 9.51 per cent on-year during the same period, with significant contributions from several products including mobile phones, cars, televisions and animal feed.

The industrial and construction sector posted its highest first quarter growth since 2010 at 8.35 per cent, while the service sector dipped slightly over last year to post a 5.82-per-cent growth.

Lam predicted that the nation would encounter difficulties in maintaining growth at the same level in the second quarter, especially after the recent electricity and petrol price hikes that are likely to have a dampening effect.

Meanwhile, a research group has predicted that the country's average annual growth for the coming five year period (2016-20) will not exceed 6 per cent, citing several factors including low productivity.

The group, under the Vietnam Institute for Economic and Policy Research (VEPR), said the country is unlikely to return to the high growth rates of 7.5 per cent seen during the 1990s and early 2000s.

It also said that if there was no new "growth motivation," it would be difficult to avoid a long-term slippage in growth.

VEPR has forecast a GDP increase of 6.2 per cent for this year, 0.2 points higher than its growth estimate for 2014. — VNS