Viet Nam’s GDP grows by 2.58 per cent in 2021: GSO

Wednesday, Dec 29, 2021 18:47

The production line at Me Tran Electronics Company Limited in the northern province of Vinh Phuc. The country’s industrial production in the fourth quarter of 2021 saw positive growth. — VNA/VNS Photo Danh Lam

Viet Nam’s gross domestic product (GDP) in 2021 is estimated to have expanded by 2.58 per cent on the previous year, despite the adverse impact of the COVID-19 pandemic on all fields of the national economy.

The figures were released at a press conference held to announce the socio-economic figures of the fourth quarter, and the year as a whole, Wednesday.

"This is a great achievement of Viet Nam, especially as in the third quarter of 2021, many key economic localities had to implement prolonged social distancing to prevent the pandemic spreading," said General Director of the General Statistics Office (GSO) Nguyen Thi Huong.

Huong said that GDP in the fourth quarter is estimated to increase by 5.22 per cent over the same period last year. This figure is higher than the growth rate of 4.61 per cent seen in the fourth quarter of 2020, but lower than the average fourth-quarter growth rates of the 2011-2019 period.

The agricultural-forestry-fishery sector grew by 3.16 per cent; the industry and construction rose by 5.61 per cent; the service sector expanded by 5.42 per cent in the fourth quarter.

Over the whole year, the agricultural-forestry-fishery sector grew by 2.9 per cent, contributing 13.97 per cent to the growth rate of the total added value of the whole economy. The industrial and construction sector expanded by 4.05 per cent and contributed 63.80 per cent and the service sector rose by 1.22 per cent, contributing 22.23 per cent.

"Growth in all three sectors (agriculture, industrial production and services) contributed to the whole year's economic growth of 2.58 per cent. This is a good growth rate as the country’s resources must be prioritised for disease prevention and control," Huong said.

Final consumption rose by 2.09 per cent against 2020 while accumulated assets increased by 3.96 per cent. The export of goods and services hiked 14.01 per cent. Imports were also up by 16.16 per cent.

Labour productivity of the whole economy in 2021 is estimated at VND171.3 million (US$7,398) per worker, $538 higher than that of 2020. Labour productivity increased by 4.71 per cent, thanks to improved qualifications among workers; the proportion of trained workers with degrees and certificates reached 26.1 per cent, higher than the 25.3 per cent of 2020.

CPI lowest in five years

Viet Nam's Consumer Price Index (CPI) edged up 1.84 per cent year-on-year in 2021, the lowest ever recorded since 2016, according to the GSO.

The CPI picked up compared to 2020, largely due to a 31.74 per cent surge in fuel prices this year, which made up a 1.14 per cent increase in the overall CPI, GSO General Director Huong said.

The CPI hike was also driven by the domestic retail price of gas which has been revised up nine times throughout the year, expanding 25.89 per cent year-on-year. This contributed to a 0.38 per cent rise in the CPI.

She also noted upturns in rice, construction materials and education service prices this year, which advanced 5.79 per cent, 7.03 per cent and 1.87 per cent respectively against last year.

The price of food dropped 0.54 per cent year-on-year, and the price of pork plunged 10.52 per cent, causing the overall CPI to fall 0.12 per cent, she said.

Electricity prices declined 0.89 per cent as part of Viet Nam Electricity (EVN)’s aid package for customers affected by the COVID-19 pandemic, pushing the CPI down by 0.03 per cent.

The pandemic has forced people to refrain from travelling, resulting in contractions of 21.15 per cent in airfares and 2.32 per cent in holiday packages.

The core inflation grew by 0.81 per cent in 2021, the lowest since 2011, she added.

In December, the index slid 0.18 per cent month-on-month but increased 1.81 per cent from a year earlier.

Firms optimistic about IIP growth next year

Data from GSO showed that the country’s industrial production in the fourth quarter of 2021 had positive growth, thanks to the Government's Resolution No 128/NQ-CP on safe adaptation to the COVID-19 pandemic. The value-added growth rate was 6.52 per cent over the same period last year.

The Index of Industrial Production (IIP) for the whole year increased by 4.82 per cent compared to 2020.

The processing and manufacturing industry increased by 6.37 per cent, contributing 1.61 per cent to the overall growth of the economy.

This was followed by the electricity production and distribution industry with a 5.24 per cent year-on-year increase; water supply, waste and wastewater management and treatment activities increased by 4 per cent. Meanwhile, the mining sector decreased by 6.21 per cent, due to a decrease in crude oil and natural gas production by 5.7 and 19.4 per cent respectively.

IIP of a number of key secondary industries increased sharply compared to the previous year; metals were up 22.1 per cent; vehicles increased by 10.2 per cent; electronic products, computers and optical products by 9.6 per cent; coal mining increased by 9 per cent; textile increased by 8.3 per cent; coke, refined petroleum products by 8.1 per cent; and apparel production increased by 7.6 per cent.

IIP in 2021 increased in 48 localities and decreased in 15 localities across the country.

The processing and manufacturing industry continued to take the lead in attracting Foreign Direct Investment (FDI) with a registered capital of $7.25 billion, accounting for 47.6 per cent of the total newly registered capital. Including newly registered capital and adjusted registered capital of projects licensed, FDI in the sector reached $14.60 billion, accounting for 60.2 per cent of total new and additionally registered capital.

Enterprises are optimistic about the IIP growth prospects next year. Of all the business sectors, 45.6 per cent of firms think in the first quarter of 2022, the trend will be better compared to the fourth quarter of 2021; 36.1 per cent believe that the production and business situation will be stable and 18.3 per cent forecast more difficulties.

Of these, the foreign-invested business sector is the most optimistic with 83.1 per cent of enterprises forecasting the production and business situation in the first quarter of 2022 to be better and more stable than the fourth quarter of 2021. The rate in State-owned enterprises and non-state enterprises is 82 per cent and 81.2 per cent, respectively. — VNS

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