Viet Nam’s gross domestic product (GDP) expanded 7.08 per cent in the first half of the year, marking the highest rate since 2010, fueled by robust expansion of the industrial and construction sector and service sector, according to the General Statistics Office (GSO).

“Impressive growth was seen in the agriculture, seafood, processing and manufacturing and service sectors. Exports continued to be a driving force for the nation’s economic development,” said GSO General Director Nguyen Bich Lam at a press conference in Ha Noi on June 29.

The agro-forestry-fishery sector picked up 3.93 per cent, contributing 9.7 per cent of GDP growth. Expanding 9.07 per cent and 6.9 per cent, the industrial and construction sector and the service industry contributed 48.9 per cent and 41.4 per cent, respectively, of GDP growth.

Notably, the industrial sector climbed 9.28 per cent in the second quarter, which is much higher than the 7.01 per cent and 5.42 per cent recorded in the same period in 2016 and 2017. Processing and manufacturing was the pillar of growth, which rose 13.02 per cent, the highest level in recent seven years.

The service industry saw the contributions of wholesale and retail sales, financial activities, banking and insurance, accommodation and restaurants, transportation and warehouse and property.

The GSO head said that business confidence was high among domestic and foreign investors in the six-month period.

In addition, Viet Nam jumped 14 steps to rank 69th among 190 economies in the World Bank’s Doing Business 2018 report, which acknowledged significant improvements of Viet Nam in the areas of getting electricity, getting credit, paying taxes, trading across borders and enforcing contracts. This is expected to create favourable conditions for investments by the private sector.

“These macro-economic indices proved the promptness and efficiency in the steering work of the Government and the Prime Minister along with efforts of ministries, sectors and localities since the onset of the year,” Lam said.

June’s CPI highest rise in six years

The consumer price index (CPI) in June expanded by 0.61 per cent over May, the highest pace over the past six years, GSO announced.

The number represented increases of 4.67 per cent year-on-year and 2.22 per cent against December 2017, the office said.

The first-half CPI hike was driven by higher prices of medical services, which climbed up 25.68 per cent in line with the Health Ministry’s Circular 02/2017/TT-BYT dated March 15, 2017, head of the GSO’s Price Statistics Department Do Thi Ngoc explained.

Higher tuition fees, an increase in the regional minimum wage, plus higher prices of food, public transport services, and oil and gas products also contributed to the CPI rise.

According to the GSO, June’s basic inflation (CPI exclusive of foodstuff, fresh food, energy, healthcare and education services) rose 0.1 per cent over the previous month and 1.37 per cent year-on-year. The number in the first six months also increased by 1.35 per cent against the corresponding period last year.

Ngoc said ministries and agencies had actively implemented the Government’s Resolution No 01/NQ-CP dated January 1, 2018 on major tasks and solutions to realise the socio-economic development plan and state budget estimate in 2018, aiming to keep CPI growth in 2018 below 4 per cent.

The industrial sector has joined hands with relevant agencies to instruct businesses to reserve goods and stabilise the market during the Lunar New Year, helping prevent unexpected price hikes on the holiday.

The Finance Ministry has also stepped up market inspections. Meanwhile, the State Bank of Viet Nam has managed the monetary policy, consistently pursuing the goal of maintaining macro-economic stability. — VNS