Vietnam’s economy grows by 7.08% in first half of 2018

Friday, 2018-06-29 16:02:42
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The manufacturing sector expanded by 13.02% in the first half of 2018.
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NDO - The Vietnamese economy expanded by an estimated 7.08% in the first six months of 2018, its best first-half performance since 2011, the General Statistics Office (GSO) has reported.

Such a strong performance was driven by impressive manufacturing growth and exports, said GSO Director Nguyen Bich Lam on June 29.

He added that the government’s aggressive efforts have built up the confidence of both domestic and foreign investors, helping to stabilise the macroeconomy and reduce the unemployment rate.

According to the GSO, Vietnam’s economy expanded by a revised 7.45% in the first quarter and 6.79% in the second quarter.

The average consumer price index in the first half of 2018 rose by 3.29% and exports surged by 16%, official data showed.

During the six-month period, the industry and construction sector grew by 9.07%, while the services and agricultural sectors expanded by 6.9% and 3.93% respectively.

The GSO stated agricultural activity made a strong recovery in the first half of 2018, posting its best results since 2012.

A breakdown of industrial production shows that manufacturing continued its robust growth, expanding by 13.02%, the highest growth rate in seven years, while mining shrank by 1.3%, which, while disappointing, is nevertheless much lower than the 7.8% contraction recorded in the first half of 2017.

The first six months of 2018 also saw impressive growth of services, with wholesale and retail increasing by 8.21% and making the largest contribution to services growth.

Regarding the economic structure, the industry and construction sector accounted for 33.78% of GDP, services 41.82% and agriculture 14.15%. Tax on products minus subsidies made up 10.25%.

GSO Director Nguyen Bich Lam affirmed that these positive macroeconomic indicators reflected the prompt and effective efforts of the central government, ministries, agencies and local authorities since the early months of 2018.