Vietnam To Surpass Its 2022 Economic Growth Goals in the 6-month Period

In the first six months of 2022, Vietnam's economic growth reached 6.42 % and average inflation was controlled at 2.44 %, showing prosperity despite supply chain breaks and geopolitical instability.
July 06, 2022 | 11:57
economy q2 signs
In the first six months of 2022, Vietnam's economic growth reached 6.42 % and average inflation was controlled at 2.44 %. Photo: VOV

The Vietnamese economy expanded at 7.72 % in the second quarter of this year, the highest rate in the same quarters in the last 10 years, the General Statistics Office (GSO) reported.

The figures for the same quarters in the last three years of 2019, 2020 and 2021 were 7.1 %, 0.52 % and 6.73 %, respectively.

In Q2 this year, the agriculture-forestry-fishery sector increased 3.02 %, contributing 4.56 % to the overall growth of the economy.

The industry and construction sector was up 8.87 %, making up 46.85 %, while the service sector rose by 8.56 %, contributing 48.59 % to the general GDP growth, said GSO General Director Nguyen Thi Huong.

Regarding GDP use, final consumption expenditure increased by 7.32 % over the same period last year; accumulated assets rose by 4.57 %, exports of goods and services surged 12.33 %; and imports of goods and services were up 4.88 %.

In the January – June period, the country's GDP grew by 6.42 %, higher than the 2.04 % and 5.74 % growth rates of the same periods in 2020 and 2021, respectively.

Most industries and fields prospered in the first half of 2022

According to GSO General Director Nguyen Thi Huong, the country's socio-economic development in the first six months of 2022 has prospered in most industries and fields, especially the processing and manufacturing industry; retail sales of consumer goods and services; and exports.

In terms of economic structure in the first two quarters, the agriculture-forestry-fishery sector accounted for 11.05 % of the country’s economy; the industry-construction and service sectors made up 39.3 % and 40.63 %, respectively, the GSO said.

The agriculture and fishery sector increased by 2.78 %, ensuring the full supply of the economy's food needs with stable prices. That is the foundation of controlling six-month inflation at 2.44 % in the context that the world is facing a food crisis and high food prices.

Foreign investment in Vietnam in the first six months of the year is also a bright spot in the economy.

Foreign direct investment capital in Vietnam in the first six months of 2022 is estimated at US$10.06 billion, up 8.9 % over the same period in 2021. This is the highest amount of realized foreign direct investment capital in the first six months of the past five years.

Right from the beginning of 2022, output and the number of new orders increased sharply at the fastest rate in nine months before January 2022. The number of new orders from abroad continued to increase and reached the highest growth rate since November 2018.

The policies, solutions, and direction of the Government, along with the efforts and flexibility of the business community, are reflected in the Purchasing Managers' Index (PMI) of the manufacturing sector in January 2022 in Vietnam, which reached the mark of 53.7 points, up from 52.5 points in December 2021, cited from VNA.

By May 2022, the PMI in Vietnam increased and reached 54.7 %. This reflects the fact that output and new orders in the economy increased more strongly in the context of production recovering from the pandemic.

Job creation is faster and the "health" of the non-state sector is significantly improved. Business conditions have improved to their best level in more than a year.

Post-pandemic challenges remained

economy q2 signs
Vietnamese economic recovery gains momentum despite global uncertainties. Photo:

The COVID-19 pandemic has caused many socio-economic difficulties. The consequences of the pandemic have not been handled when we witnessed the Russia-Ukraine conflicts, and US and Western sanctions.

According to economic expert Nguyen Bich Lam, in the first six months of 2022, a total of 83,570 enterprises suspended business for a definite time, shut down, or are waiting for dissolution procedures and completing dissolution procedures,

The total number of enterprises temporarily suspending production and business, waiting for procedures and permanently withdrawing from the market accounted for 71.48 % of the total number of newly-established enterprises and enterprises returning to operation (after the pandemic).

This reflects that the business sector is still seriously vulnerable to the difficulties of the world and domestic economy.

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