GDP growth estimated at 2.91% this year

Vietnam’s gross domestic product (GDP) this year is expected to grow by 2.91% compared to 2019, according to Director General of the General Statistics Office (GSO) Nguyen Thi Huong.

Vietnam's GDP is expected to grow by 2.91% in 2020.
Vietnam's GDP is expected to grow by 2.91% in 2020.

Speaking at a press conference in Hanoi on December 27 to announce socio-economic performance data for the fourth quarter and the whole year of 2020, Huong said though the figure was the lowest during the 2011-2020 period due to the COVID-19 pandemic, Vietnam’s growth remains among the world’s highest.

Specifically, it expanded by 3.68% in the first quarter, 0.39% in the second quarter, 2.69% in the third quarter and 4.48% in the fourth quarter.

According to her, agro-forestry-fisheries sector grew by 2.68%, contributing 13.5% to added value of the whole economy. Industry and construction was up 3.98% and services up 2.34%, contributing 53% and 33.5% to the economy, respectively.

Manufacturing and processing sector played a key role in leading growth of the economy with a 5.82% rise. Electricity production and distribution grew by 3.92%, water supply and waste treatment up 5.51%, and mining down 5.62%.

Services sector posted the lowest growth in nine years due to the pandemic with retail and wholesale increasing by 5.53% annually, finance-banking-insurance up 6.87%, transportation and logistics down 1.88%, accommodation and dining down 14.68%.

Regarding economic structure, agro-forestry-fisheries accounted for 14.85%, industry and construction 33.72%, and services 41.63%.

The Incremental Capital – Output Ratio (ICOR) reached 7.04 on average during the 2016-2020 period.