Viet Nam surpasses 2017 GDP target aided by global strength

Thursday, Dec 28, 2017 09:10

Viet Nam is expected to achieve Gross Domestic Product (GDP) growth of 6.81 per cent this year, surpassing the Government’s target of 6.7 per cent. — VNA/VNS Photo

Viet Nam is expected to achieve Gross Domestic Product (GDP) growth of 6.81 per cent this year, surpassing the Government’s target of 6.7 per cent.

General Director of the General Statistics Office (GSO) Nguyen Bich Lam announced information at a press conference in Ha Noi yesterday to report on the socio-economic indexes in 2017.The country’s quarterly GDP growth figures were 5.15 per cent in Q1, 6.28 per cent in Q2, 7.46 per cent in Q3, and 7.65 per cent in Q4.

The agro-forestry-fisheries sector, industry, construction and services sectors were the main contributors to the cumulative GDP growth rate.

The agro-forestry-fishery sector is expected to increase by 2.9 per cent, contributing 0.4 percentage points to the 6.81 per cent GDP growth. The industrial and construction sector posted an 8 per cent growth rate, contributing 2.77 percentage points whilst the service industry climbed by 7.44 per cent, contributing 2.87 percentage points.

Lam said the economic results were achieved thanks to concerted efforts by the Government, ministries and sectors, adding that Viet Nam’s socio-economic affairs this year were boosted by the steady recovery and growth of major economies such as China, the US, Japan, the Republic of Korea (RoK) and the European Union (EU). The World Bank has forecast that global GDP growth will stand at 3 per cent, while the International Monetary Fund (IMF) anticipated growth of 3.6 per cent this year.

Global trade activities also witnessed improvements. In September 2017, the World Trade Organisation (WTO) increased its annual forecast for global trade to 3.6 per cent, higher than the previous level of 2.4 per cent and much higher than the growth of 1.3 per cent in 2016.

“These are active factors for domestic production since Viet Nam has been integrating more extensively and intensively into the world’s economy,” Lam said.

Viet Nam recorded high credit growth, abundant remittances and foreign direct investment (FDI), stable exchange rate and increasing foreign exchange reserves, he said. The country continued focusing on economic restructuring to increase competitiveness, improve the business environment and promote start-ups.

However, the country faced certain difficulties, such as a strong reduction in farm produce and food prices, which had negative impacts on livestock breeding, while natural disasters and diseases wreaked havoc in many localities, he added.

According to the GSO, the economy in 2017 was worth VND5 quadrillion (US$223 billion) and the average GDP per capita is estimated at VND53.5 million ($2,385), up $170 compared to the 2016 rate.

Exports of goods and services increased by 16.74 per cent while imports of goods and services rose by 17.5 per cent.

On the business front, the registration of 126,859 new enterprises with a total capital of nearly VND1.3 quadrillion marked a year-on-year increase of 15.2 per cent in number and 45.4 per cent in capital. In addition, nearly 26,448 businesses resumed operations, a year-on-year decrease of 0.9 per cent.

Inflation under control

Vu Thi Thu Thuy, Director of the Price Statistics Department, said inflation was below the target of 4 per cent set by the National Assembly.

The consumer price index (CPI) in December rose by 0.21 per cent from the previous month and by 2.6 per cent over the corresponding time last year. The average CPI this year was up 3.53 per cent compared with the same period of 2016.

In December, eight of 11 commodity groups recorded increases, with medicines and healthcare services seeing the sharpest hike with 2.55 per cent, followed by transportation services at 0.84 per cent.

Some other commodities with increases of below 1 per cent were housing and construction materials (0.22 per cent), culture, entertainment and tourism services (0.03 per cent) and beverage and tobacco (0.17 per cent).

Two groups seeing decreases included food and restaurant services and post and telecommunications, down 0.08 per cent and 0.04 per cent respectively. — VNS

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