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06.05.2022, 13:05

Vietnam Economic Indicators Pointing Towards Gradual Recovery

Vietnam’s economic recovery is moving slowly but surely, with data from the General Statistics Office showing that most of the economic indicators increased in the first four months of the year.

In a socio-economic situation report released by the GSO, sectors such as agriculture, industrial production, enterprise registration, local and foreign investments, import and export, and foreign arrivals have shown healthy growth rates from January to April.

Thanks to a fully vaccinated adult population, a successful inbound tourism resumption, and a decreasing number of daily cases, Vietnam has made remarkable progress in living in the new normal and bringing back the fast-growing economy it once enjoyed pre-pandemic.

Agriculture

Source: General Statistics Office

As of April 15, Vietnam has already cultivated about 375.5 thousand hectares of maize and 583.4 thousand hectares of vegetables, increasing 1.2% and 1.3%, respectively, compared to the same period last year. However, the cultivation of peanut, sweet potato and spring paddy showed slight decreases. Livestock and fishery production also experienced a considerable increase.

Industrial Production

Source: General Statistics Office

Industrial production in the first fourth months of 2022 continued to prosper, with the value-added of the whole industry increasing by 7.5% compared to the same period last year. Manufacturing led the growth with an 8.3% increase, thanks to the output and employment recovery in April. As factories and businesses reopened facilities, workers have returned to their normal production conditions.

It’s also worth noting that Vietnam had registered nearly 50,000 new enterprises in the first four months of 2022 after a lengthy lockdown in the second half of 2021 forced businesses to shut their doors. More than 30,900 enterprises have restarted operations, while a total of 5,562 businesses have permanently closed.

Investment

Source: General Statistics Office

Vietnam received a total of VND109.6 trillion of domestic capital in the first fourth months of 2022, showing an increase of 9.1% — VND18.4 trillion of which was for State-owned enterprises, while the non-state sector gained VND91.2 trillion.

During the first four months of the year, foreign investment inflows into Vietnam saw a decline of 11.7% year-on-year to $10.81 billion. From January to April, disbursement of foreign direct investment also grew by 7.6% to $5.92 billion.

Large-scale projects such as the 1-billion-USD LEGO factory in Binh Duong province and the Vietnam-Singapore Industrial Park contributed to boosting foreign investment capital in the country and driving confidence among investors further.

The processing and manufacturing sector got the largest share of FDI with nearly $6.2 billion, accounting for 57.2% of the total. The real estate sector came next with $2.8 billion or 26.1%.

Singapore, Vietnam’s largest foreign investor in 2020 and 2021, remained at the top with a $3.1 billion total investment.

Export and Import

Export and import of goods recovered strongly from January to April, with exports rising 16.4% to $122.36 billion and import up 15.7% to $119.83 billion. The $2.53 billion trade surplus recorded for the period was a marked improvement over the same period last year at $1.5 billion.

The country recorded 22 commodities with export values exceeding $1 billion, with six at over $5 billion in the first four months of 2022. Meanwhile, imports were made up mostly of input materials (93.9%), including tools and machinery, raw materials, and consumer goods, according to a detailed report by Vietnam News.

The US remained Vietnam’s largest export market with an estimated turnover of $35.7 billion, while China was the largest import market with $37.1 billion in the first four months of 2022.

Foreign Arrivals

Source: General Statistics Office

Vietnam’s full border reopening on March 15 signaled the resumption of tourism and the recovery of the country’s embattled travel industry. Now more than a month since the number of international visitors to Vietnam continues to increase sharply.

A total of 192,357 arrivals were recorded in the first four months of 2022, marking a smashing 184.7% increase over the same period last year. Arrivals by air increased by 297%, while road and sea arrivals decreased by 10.5% and 58.7%, respectively. Most foreign arrivals were from Asian countries, followed by Europe and America.

The soaring numbers of foreign visitors also helped in the increase 10.5% increase in sales of tourism and travel services, amounting to $4.3 trillion. Accommodation and catering services also gained $170.9 trillion, a 5.2% on-year increase.