H1 GDP GROWTH SEEN HITTING TWO-DECADE HIGH

Nguyen Van Thang, Minister of Finance, speaks at a Government meeting on July 3 - PHOTO: VGP

HCMC – Vietnam’s economy is expected to expand at least 7.3% in the first half of this year, nearing the Government’s annual target and marking the highest six-month growth for the same period in nearly 20 years, according to the Ministry of Finance.

Early estimates in late May put second-quarter gross domestic product (GDP) growth at around 7.7%, bringing first-half growth to 7.3%. More recent data suggests the first-half figure could be adjusted upward by 0.2 to 0.3 percentage point, Nguyen Van Thang, Minister of Finance, was quoted by the Government news site (baochinhphu.vn) as speaking at a regular Government meeting on July 3.

Manufacturing output rose 10% in the first half, with the processing and manufacturing sector up 10.65% year-on-year in the second quarter. Exports increased 14.4% during the period, generating a trade surplus of US$7.63 billion.

Retail sales and consumer service revenue picked up 9.3% in the first half, while international tourist arrivals reached 10.7 million, up 20.7% from a year earlier.

From January to June, foreign direct investment pledges climbed 32.6% year-on-year to US$21.5 billion, the highest level since 2009. FDI disbursement rose 8.1% to US$11.7 billion.

About 152,700 enterprises entered or re-entered the market in H1, exceeding the 127,200 that exited the market. June saw a record 24,400 new business registrations with total registered capital of VND177 trillion.

The number of newly registered household businesses rocketed 118.4% over the same period last year, with 124,300 new registrations in the first half, up 118.4% year-on-year.

Despite optimistic projections, the Government warned of continued economic challenges ahead, including inflationary pressure and exchange rate risks. Minister Thang cited legal reform, export promotion, improved investment climate, and monetary stability as priorities for the third quarter.

Source: The Saigon Times