29.06.2020, 16:19

Vietnam GDP increased by 1.81% in the first six months of 2020

Vietnam GDP increased by 1.81% in the first six months of 2020
At the press briefing (Photo: VOV)

Nguyen Thi Thu Huong, Deputy General Director of the GSO, told a press briefing held in Hanoi on June 29 that Vietnam’s GDP has risen by 1.81% in the first six months of 2020. GDP during the second quarter of the year was estimated to grow annually by 0.36%, informed VOV. 

According to the GSO, Vietnam’s socio-economic situation in the first six months of the year occurred while the Covid-19 outbreak has spread on a global scale, seriously affecting all socio-economic aspects of the world. International organizations and financial institutions have forecasted that the global economy will fall into recession in 2020.

In Vietnam, the Covid-19 epidemic evolved complicatedly, negatively affecting all socio-economic aspects and the entire political system.  The Government and the Prime Minister placed a top priority on epidemic prevention and control, sacrificed economic benefits to ensure the lives and health of the people. This is a solid foundation for Vietnam’s economy to continue to grow, without falling into negative growth, Nhan Dan reported. 

Vietnam’s GDP has risen by 1.81% (Photo: VnExpress)

As a result, over the past six months, the GDP of the agriculture, forestry and fishery sector saw an increase of a 1.72%, the industry and construction sector by 1.38%, whilst the service sector dropped 1.76%.

Regarding general growth in the economy as a whole, the agriculture, forestry and fishery sector increased by 1.19%, contributing 11.89% to overall growth, with industry and construction rising by 2.98%, accounting for 73.14%, whilst the contribution and service sector grew by 0.57%, contributing 14.97%. 

A number of markets have made up a large proportion of the increase in total added value during the reviewed period. Wholesale and retail increased by 4.3% on-year, turning it into the largest contributor to the increase in total value added of the economy. Finance, banking and insurance follow as they went up by 6.78%, whilst transportation and warehouses dropped by 3%, with accommodation and catering services down by 20.7%.

Covid-19 also greatly influenced import and export turnover of many items. For the first half of the year, total import and export turnover reached US$ 238.4 billion, down 2.1% over the same period last year, of which exports decreased by 1.1%, imports decreased by 3%. However, Vietnam still experienced an estimated trade surplus of US$ 4 billion.

This positive growth rate of Vietnam’s GDP is quite good (Photo: Nhan Dan)

Despite many difficulties, this positive growth rate of Vietnam’s GDP is quite good compared to other countries in the world. Specifically, major economies in the world such as the US, Japan, the EU have been facing deep recessions. Besides, there have been an interrupted global supply chain, a sharp drop in crude oil price, and high unemployment. The US-China trade war continues, the political tension between the US and Iran increases. Also, internal disagreements among oil export organizations and on the Korean peninsula have had a negative impact on Vietnamese economy, according to VnExpress.

With this positive growth rate of Vietnam’s GDP in the first six months of the year, GSO Deputy General Director Huong evaluated that “The above results are attributable to the great efforts by  all sectors, the business community, and people in the fight against the pandemic. They have at the same time maintain production and business activities and gradually bring the economy back to normal as it was before the epidemic occurred.”

According to an updated report of the International Monetary Fund (IMF) released on June 24, the global economy is estimated to decrease by 4.9% this year. The major economies are forecasted to decline sharply. US GDP will grow by negative 8% in 2020.

The negative growth rate for the Eurozone will be 10.2%, Germany down 7.8%, France and Italy down 12.5% and 12.8% respectively. Japan’s growth decline will be 5.8%.