GDP EXPANDS NEARLY 5% IN Q1 DESPITE COVID-19 PANDEMIC

The gross domestic product grew 4.48% in the first quarter compared to 3.68% of the same period last year, according to the General Statistics Office (GSO).

Specifically, agro-forestry-fishery sector expanded by 3.16% while industry and construction grew 6.3% and service sector picked up 3.34%.

In Q1, total social investment capital disbursement was estimated at VND 507.6 trillion, representing a year-on-year increase of 6.3% and accounting for 26.5% of GDP.

Exports were seen up 22% to US$77.34 billion, while import value was estimated to increase by 26.3% to US$75.31 billion, resulting in a trade surplus of US$2.03 billion in the first three months.

Challenges lying ahead

GSO General Director Nguyen Thi Huong was quoted as saying that in Q1 the Vietnamese economy has coped with mountains of difficulties.

Huong assessed that the GDP growth rate of 4.48% in Q1 was quite good in comparison with other countries in the region and the world at large. Meanwhile, the macro-economy was stable and inflation rate was reined in at low pace.

However, in Q2, the country is predicted to face with numerous obstacles as the economy has been deeply integrated into the global economy. In addition, the pandemic has been put under control in Viet Nam but still evolved complicatedly across the globe, resulting in disruptive supply chain and negative impacts in other sectors like tourism, unemployment, and social security.

The preset goal of 6.5% GDP growth rate represents a big duty, said the General Director. She underlined the necessity to properly control the COVID-19 outbreaks, effectively support the business community, and speed up public disbursement rate.

Source: VGP