Vietnam’s economy grew by 5.66 per cent year-on-year in the January-March quarter, according to official data released on Friday. According to the latest government data, the increase was driven by the strong performance of the manufacturing and services sectors.
The General Statistics Office (GSO) said on Friday that the Southeast Asian country’s GDP growth was higher than the 3.41 per cent expansion recorded in the first quarter of last year. However, it signalled a slowdown from the 6.72% growth recorded in the fourth quarter.
According to the General Statistics Office, exports of goods rose by 17 per cent in dollar terms in the first quarter, offsetting the 4.4 per cent decline for the year as a whole.
However, overall growth in the industrial and construction sectors slowed to 6.28 per cent from 7.35 per cent in the previous quarter, while mobile phone and car production fell by 13.3 per cent and 11.3 per cent respectively. The agency noted that growth in the services sector also slowed to 6.12% from 7.29% in the previous quarter.
On the consumer front, it was noted that there was an increase in price levels in March, with consumer prices rising by 3.97% yoy. Moreover, retail sales rose by 8.2% in the January-March period, indicating strong domestic demand in the country’s economy.
It is noted that the first quarter figures reflect Vietnam’s ongoing economic recovery and challenges.
Vietnam’s burgeoning supply chain is attracting chip and solar panel makers and other companies seeking shelter from the US-China trade war, making it one of Asia’s fastest-growing export-driven economies.
Samsung and Adidas, which have factories in the country, are targeting gross domestic product growth of between 6% and 6.5% this year, similar to last year’s 5% rise.
