Vietnam’s GDP growth in Q1 lower than expected
HCMC – Vietnam’s gross domestic product (GDP) in the first quarter of 2023 has grown by 3.32% year-on-year,
Although the growth rate of 5.05% in 2023 does not meet the set target, it is still a positive number in the context of the general difficulties of the global economy. Vietnam continues to be a global and regional growth hotspot.
That information was shared by Ms Nguyen Thi Huong, General Director of the General Statistics Office (Ministry of Planning and Investment), at the press conference announcing socio-economic statistics for the fourth quarter of 2023 and 2023 this morning, December 29.
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Leaders in the national statistics sector believe that while GDP growth in 2023 will not meet the 6.5% target outlined in the government's Resolution 01/NQ-CP and 2023 Socio-Economic Development Plan, it is still a good result and places the country among the economies with the fastest growth rates in the world.
Specifically, gross domestic product (GDP) in 2023 is estimated to increase by 5.05% compared to the previous year. In the increase in the total added value of the entire economy, the agriculture, forestry and fishery sector increased by 3.83%, contributing 8.84%; The industrial and construction sector increased by 3.74%, contributing 28.87%; The service sector increased by 6.82%, contributing 62.29%.
The agriculture, forestry and fisheries sector grew positively. The added value of the agricultural sector in 2023 will increase by 3.88%, contributing 0.34 percentage points to the increase in the total added value of the entire economy. The forestry sector increased by 3.74% but accounted for a low proportion, so it only contributed 0.02 percentage points. The fisheries sector increased by 3.71%, contributing 0.1 percentage points.
The industrial and construction sectors face many challenges in declining world aggregate demand. The added value of the entire industry in 2023 will only increase by 3.02%, which is the lowest increase of any year in the period 2011-2023 and contributes 1.0 percentage points to the growth rate of the total added value of the entire economy.
Activities related to trade and tourism continue to have strong growth momentum, which supports the expansion of the service sector. The added value of the service sector in 2023 will increase by 6.82%, higher than the increase of 2.01% and 1.75% in the years 2020-2021.
Notably, commercial activities and consumer services in the last month of the year took place vibrantly, contributing to completing the production and business plan for 2023. The service sector achieved a quite positive growth rate compared to the previous year.
Total retail sales of goods and consumer service revenue in the fourth quarter of 2023 increased by 9.3% over the same period. The overall revenue from consumer services and retail sales of items would rise by 9.6% in 2023.
Notably, it is projected that in 2023, the GDP will be valued at over 10.2 million VND, or 430 billion USD, at current rates. According to current estimates, GDP per capita in 2023 will be 101.9 million VND/person, or 4,284 USD, a 160 USD rise over 2022.
In addition, the average consumer price index (CPI) in the fourth quarter of 2023 increased by 3.54% compared to the fourth quarter of 2022. For 2023, CPI will increase by 3.25%, reaching the target set by the National Assembly.
"In the context of general difficulties of the global economy, our country's socio-economic situation in 2023 continues the recovery trend, the macroeconomy is stable, inflation is under control, major balances are Ensuring that many important results in all fields achieve the set goals and continue to be an economic bright spot in the region and the world," General Director Nguyen Thi Huong said.
Sharing on the sidelines of the press conference, Director General of the General Statistics Office Nguyen Thi Huong assessed: In the context of most international organizations assessing that global economic growth will decline this year at the level below 3%. We achieved a growth of 5.05%, which is a very positive result and is still a bright spot in growth in the region and the world.
"The GDP numbers climbed progressively from quarter to quarter to year-end, demonstrating the challenges and efforts from the start of the year, but we persisted, resolutely using all of our internal and external resources, and produced extremely positive outcomes.
The results displayed by the agriculture, forestry, and fishery sector "...with impressive, unprecedented numbers... demonstrate the solid supporting role of the economy when it comes to maintaining connections with the world through agricultural products like rice and vegetables, as well as when exporting food abroad," Ms Huong stated.
Director General of the General Statistics Office Nguyen Thi Huong assessed that the growth rate of 5.05% in 2023, although not reaching the set target, is still a positive number in the context of general difficulties of the global economy.
Along with that, leaders of the statistics industry said that they realized foreign investment capital is the real number of large international corporations that believe in investing in Vietnam, with more than 23 billion USD in the past year. This is the highest investment level in the past 5 years.
In addition, more than 12.6 million tourists visited our nation this year, surpassing the 8 million initial aim and hitting the revised 12.5 million target. This demonstrates that Vietnam offers a desirable environment to individuals and corporations alike.
"2024 is still very difficult, but domestic and world organizations predict that Vietnam and some countries in the region will have better growth than 2023." People and businesses throughout the nation and the world are beginning to trust us, which is helping us build momentum. One benefit that only some nations have is this one.
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