Vietnam’s economy unexpectedly achieved growth in the second quarter, although the growth rate was at least the slowest in a decade, due to a decline in exports due to the coronavirus pandemic.
The National Bureau of Statistics said in Hanoi on Monday that gross domestic product (GDP) grew 0.36% year-on-year, while the revised value for the first quarter was 3.68%. The median survey by Bloomberg economists estimated that GDP fell by 0.9%.
- Vietnam’s export-dependent economy is being hit because the virus has disrupted global supply chains and damaged demand, but this year may still be one of the best performing countries in Southeast Asia. Prime Minister Ruan Xuanfu said last month that the economy may As the government hopes to attract more foreign investment from enterprises that adjust the supply chain, it will maintain a growth of 4%-5% this year
- Duong Manh Hung, head of the GDP department of the Statistics Bureau, said in the briefing that with 1H GDP growth of 1.81%, it is “impossible” to reach the government’s annual growth target of 6.8%. Hong said the Bureau of Statistics proposed to revise the prime minister’s goals.
- June exports were down 2% from the same period last year, while imports were up 5.3%
- Consumer prices in June rose by 3.17% from the same period last year and were higher than 2.4% in May. The government plans to keep the average inflation rate within 4% this year
- Vietnam’s trade surplus in June was US$500 million, while last month’s deficit was US$900 million. For detailed classification of trade data, click Here
—With the assistance of Sato Tomoko, Ruan Guijiang and Xuan Quinn Ruan
(The second bullet point updates the economic growth target)